Nerves Frayed at Forest

Forest Laboratories (FRX Quote) is entering this quarterly earnings season with a dilemma common to its brand-name peers -- what to do about the threat of generic competition.

The difference is that the impact could be quite uncommon if Forest loses a patent fight for the antidepressant Lexapro, which accounted for $1.87 billion, or 63% of its corporate revenue, for the fiscal year ended March 31.

New York-based Forest is being challenged by Israel's Teva Pharmaceutical Industries (TEVA Quote), which wants to break Lexapro's U.S. patent. A trial was held in March, and a judge's decision is expected this summer, perhaps even this month. ...