Drug maker Forest Laboratories, Inc. (FRX) reported Tuesday a sharp decline in fourth-quarter profit as sales were mainly hurt by the loss of patent exclusivity for its anxiety disorder drug Lexapro. The company also issued fiscal 2014 forecast for earnings and sales, higher than last year.
In its fourth quarter, the company's net earnings plunged to $45.44 million or $0.17 per share from last year's $192.67 million or $0.72 per share.
Excluding acquisition related amortization, adjusted earnings fell to $67.16 million or $0.25 per share from last year's $207.96 million or $0.77 per share.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $0.15 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenues fell to $821.67 million from $1.06 billion last year, while analysts were looking for revenues of $805.73 million.
In the quarter, net sales decreased 21.4 percent to $783.2 million due to the loss of patent exclusivity on March 14, 2012 for Lexapro, partially offset by sales of the company's next generation products.
Looking ahead for fiscal 2014, the company expects that earnings will be in a range of $0.40 to $0.60 per share, compared to last year's loss of $0.12 per share. Adjusted earnings will be in the range of $0.80 to $1.00 per share, significantly higher than last year's $0.45 per share. Analysts expect earnings of $0.95 per share for the year.
Net revenues for the year would be about $3.5 billion, compared with $3.1 billion reported in fiscal 2013. Analysts also projects $3.5 billion in revenues.
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