Buddy Lyons
Value, long/short equity, contrarian, growth

Forest Labs: Finally Time To Buy Again - Favorably Skewed Risk-Reward In The Next 24 Months

Forest Labs (NYSE:FRX) is a stock that we have been out of for a couple of years due to the patent expirations of its two leading products Lexapro (depression - expired) and Namenda (Alzheimer's - expires 2015), which represented over 60% of the company's revenue. Even with the impending expiration of Namenda ($1.5B sales, 30% revenue), the company and the stock appears to be turning the corner. In the face of some weaker-than-expected product sales, FRX has still outperformed by a couple hundred basis points this year; confirming that investors are beginning to look through the FY15 patent expiration to the explosive growth on the other side. Additionally, the company recently hired Brent Saunders as CEO. Saunders is

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