News You Need: Forest Lab, Intel
Forest Laboratories ( FRX) delivered a fiscal third-quarter earnings beat Tuesday on strong sales of its two lead products and offered upbeat full-year guidance. Shares of the New York City-based drugmaker rose 60 cents, or 1.6%, to $38.18 in recent trading. The company recorded $998 million in revenue for the quarter, an increase of 12% over the year prior when the company recorded $893 million. Forest Laboratories earned $301 million, or 96 cents a share, compared to $250 million, or 78 cents a share, in the year-ago quarter. There were 7 million fewer diluted shares in the recent quarter.
Analysts surveyed by Thomson Financial were looking for 75 cents a share on revenue of $946 million. Sales of the company's Lexapro for major depressive disorder and generalized anxiety disorder in adults increased 11% year over year to $603 million. Forest plans to seek expanded approval for Lexapro to include the adolescent population, having reported positive data from a late-stage trial. Also, sales of Namenda for Alzheimer's increased 26% to $218 million. An increase in inventory at the end of December positively affected sales of Lexapro and Namenda by $23 million and $5 million, respectively. Aside from Namenda and Lexapro, the company launched hypertension drugs Azor and Bystolic, which received Food and Drug Administration approval on Dec. 17. And it's submitted a new-drug application for fibromyalgia treatment milnacipran. Based on the performance of its promoted products, Forest Laboratories increased its expectations for its full fiscal year, which ends March 31. The company now sees $3.35 to $3.45 a share for the year, before items, vs. prior guidance of $3.10 to $3.20 a share. The Thomson Financial consensus target was for $3.06 a share.