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FOREST LABORATORIES
April 10, 2003
Current Data
3Q03 Review: FootNote Focus Published
FOREST LABORATORIES (FRX)
Apr 09, 2003 . 52.82
Valuation
2,998,300
May Jul Sep Nov 02 Mar May Jul Sep Nov 03 Mar
Operating Data
This Qtr Annual Results (FY-Mar.)
12/31/01
12/31/02
18.8% Sales
99.7% Gr Margin
LTD/Cap.
Times Int
Company Description
Forest Laboratories, Inc. develops, manufactures and sells both branded and generic forms of prescription drug products,
as well as non-prescription pharmaceutical products sold over-the-counter. Its products include Celexa, a SSRI for the
treatment of depression; the respiratory products Aerobid and Aerochamber; Tiazac, a once-daily diltiazem for the
treatment of hypertension and angina; and Infasurf, a lung surfactant for the treatment and prevention of respiratory
distress syndrome in premature infants. In the US, the company markets its products through its domestic sales forces,
Forest Pharmaceuticals, Forest Therapeutics, Forest Healthcare and Forest Specialty Sales. In the UK, the company's
Forest Laboratories UK subsidiary's sales force markets its products directly.
Operating Data-LTM
Gross EBITDA
Sales(MM)
/Share Total Cap
FOREST LABORATOR FRX
Selected Peers
SCHERING-PLOUGH
Valuation Data
Pr/Sales
Price/Bk
FOREST LABORATOR FRX
Selected Peers
SCHERING-PLOUGH
*Peer Group includes the 11 companies in S&P's Major Ehtical Pharm group.
Source: Baseline See important disclaimers on last page.
3Q03 Results
Diluted EPS increased 96% to $0.47 as sales growth (+46%, thanks to sales of anti-depressants) outpaced
increases in SG&A (+16%) and R&D (+26%) spending.
Sales increased 46% to $586,804,000. Sales in the quarter included $452,194,000 for Forest's antidepressant franchise which was comprised of $371,207,000 of Celexa(TM) (citalopram HBr), a selective serotonin reuptake inhibitor (SSRI) and $80,987,000 of Lexapro(TM) (escitalopram oxalate), Forest's recently introduced SSRI. Antidepressant sales in last year's third quarter were $280,502,000. Net income almost doubled to $174,581,000. Nine-month results
· Net sales increased 40% to $1,585,592,000. Antidepressant sales rose 56.3% to $1,2 billion.
· Net income rose 83% to $441.2 million
· Diluted EPS increased 82% to $1.18 vs.$.65 in last year's nine months.
Howard Solomon, Chairman and Chief Executive Officer of Forest, said: "Growth in our antidepressant franchise was principally responsible for our strong financial performance during the quarter. We are optimistic about the prospects for continued strong growth in our antidepressant franchise as well as steady growth in sales of Benicar(TM)*, an angiotensin receptor blocker for the treatment of hypertension, which is co-promoted with Sankyo. This last quarter we re-filed the New Drug Application for memantine for the treatment of moderate to severe Alzheimer's disease and supplemented the application this week with data from the recent clinical study which examined the use of memantine in combination with Aricept(R)*. We also filed a supplemental New Drug Application for generalized anxiety disorder for Lexapro." Guidance
Management expects 4Q03 EPS to be comparable to 3Q’s $0.47, which represents a80.8% increase from the
$0.27 posted in 4Q02.
FootNote Focus Report
We posted a report analyzing the company’s investment risk (by examining the footnotes in SEC filings) that
can be accessed (for a fee) at www.researchstock.com.
-Rick Wayman, CFA rwayman@researchstock.com FOREST LABORATORIES(FRX)
FOREST LABORATORIES(FRX)
Revenues - 4 Quarter Moving Average
Earnings - 4 Quarter Moving Average
$ Millions
5 Yr Hist Gr Rate: 63 % (LT Future: 25 %)
5 Year Growth Rate: 35 %
FOREST LABORATORIES(FRX)
FOREST LABORATORIES(FRX)
Price to Book
P/E Range
P/E BASED ON ESTIMATED EPS:
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