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Forest Labs 2Q profit slips on launch costs

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Forest Laboratories Inc.'s net income fell 13 percent in the fiscal second quarter as it ramped up spending on three new drugs it has launched this year.

The company said its profit slipped to $249.8 million, or 91 cents per share, from $286.1 million, or $1 per share. Forest started marketing the anti-infection drug Teflaro in March, and in August, it began selling the lung disease drug Daliresp and the depression treatment Viibryd. Its revenue grew 7 percent, to $1.17 billion from $1.09 billion.

Analysts expected Forest to earn 99 cents per share on $1.15 billion in revenue, according to FactSet. The company's fiscal second quarter ended Sept. 30.

Forest said revenue from its antidepressant Lexapro rose 5 percent to $596.1 million, and revenue from its Alzheimer's treatment Namenda grew 9 percent to $336.8 million. The patents supporting both drugs will expire by 2015.

In comparison, sales of the new drugs are tiny so far.In the latest quarter, Forest reported $5.3 million in sales of Teflaro, $5.3 million from Viibryd, and $1.2 million from Daliresp. However the company said its sales, general, and administrative costs rose 23 percent during the quarter.

Forest said it is maintaining its full-year profit forecast of $3.60 to $3.70 per share. Analysts expect the company to report a profit of $3.73 per share over the fiscal year ending March 31.

Shares of Forest Laboratories fell $1.03, or 3.2 percent, to $31.09 in morning trading.

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