Forest Labs Q1 Profit Tops Views

Pharmaceutical company Forest Laboratories reported Tuesday a profit in for the first quarter that more-than-doubled from last year, reflecting revenue growth and lower charges. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

The New York-based company reported net income of $258.14 million or $0.90 per share for the first quarter, up from $117.48 million or $0.39 per share in the prior-year quarter.

Results for the latest quarter included a charge of $40 million or $0.14 per share for a new product licensing fee. The year-ago results included a charge of $50 million or $0.17 per share for a new product licensing fee, and a charge of $148.4 million or $0.39 per share related to a U.S. Department of Justice settlement.

Excluding items, adjusted earnings for the quarter grew to $1.04 per share from last year's $0.95 last year. On average, 25 analysts polled by Thomson Reuters expected the company to earn $0.97 per share in the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter grew to $1.15 billion from $1.07 billion in the same quarter last year, and topped 16 Wall Street analysts' consensus estimate of $1.13 billion.

Net sales improved 8.2% to $1.10 billion from last year, and contract revenue edged up to $40.64 million from $39.80 a year ago, while interest income was $5.58 million, down from $7.01 million last year.

Product-wise, sales of Lexapro, for the initial and maintenance treatment of major depressive disorder, grew 3.2% to $585.7 million from last year. Sales of Namenda, for the treatment of moderate and severe Alzheimer's disease, grew 3.9% to $319.9 million, and sales of Bystolic, for hypertension, were up 31% to $78 million from a year ago.

The company's newest product Savella, for the management of fibromyalgia, recorded sales of $25.8 million, 25.6% higher than last year.