said Wednesday that two recent marketing deals will force the company to reduce its earnings guidance for the fourth quarter and fiscal year each by 29 cents a share.
The company's fiscal year ends March 31. The New York-based drugmaker's announcement, which came after the markets had closed, means that Forest expects fourth-quarter earnings will be 22 cents a share and its fiscal-year profit will be $2.01. The fiscal-year guidance excludes a tax benefit of 10 cents a share that was recorded in the first quarter.
The marketing deals called for upfront payments to two companies during the quarter, raising Forest's R&D expenses to $405 million from $285 million. The payments are booked as R&D expenses because the drugs covered in these transactions are still experimental.
$75 million as part of an agreement to develop and market a blood-pressure drug. Forest also has paid $50 million to
, a privately held Louisville, Colo., company, to develop and market an antibiotic for treating lung, sinus and skin infections.
Forest's stock gained 76 cents, or 1.6%, to close at $47.26.
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