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Business Wire (Apr 1, 2014)
Forest Laboratories Submits a New Drug Application for Nebivolol and Valsartan Combination in HypertensionBusiness Wire (Feb 27, 2014)
at CNBC.com (Feb 21, 2014)
at Fox Business (Feb 20, 2014)
at CNBC.com (Feb 20, 2014)
at MarketWatch.com (Feb 18, 2014)
at MarketWatch.com (Feb 18, 2014)
at CNBC.com (Feb 18, 2014)
at Fox Business (Feb 18, 2014)
at MarketWatch.com (Feb 18, 2014)
FRX vs. ETF Alternatives
Monday, Apr 141:34 PM
Monday, Apr 141:34 PM| Comment!
- In yet another example of the recent struggles of biotechs, recent IPO Adamas Pharmaceutics (ADMS +2.8%) exchanges hands for $13.40/share, down 16% from its initial price of $16 and down 22% from its opening day high of $17.24.
- The company generates its revenues from collaboration and licensing deals but has two compounds in development that it plans to sell directly.
- ADS-5102 (amantadine) is a treatment for levadopa-induced dyskinesia, a movement disorder in Parkinson's sufferers after long term exposure to levadopa. A Phase 3 clinical trial will start this year. The company forecasts its NDA submission to happen in the first half of 2016.
- ADA-8704 is a once-daily combination of Namenda XR (memantine HCL) and donepezil HCL for moderate to severe dementia in Alzheimer's patients. The NDA has been submitted to the FDA triggering a $40M milestone payment from partner Forest Labs (FRX +0.1%).
- Revenues for 2012 and 2013 were $37.5M and $71.1M, respectively.
- Net income was $17.7M and $50.9M, respectively.
- CF Ops was $52M and $26.8M, respectively.
- (IPO) (FPX)
Monday, Mar 317:49 AM
Monday, Mar 317:49 AM| Comment!
- Forest Labs (FRX) and Gedeon Richter (GEDSF) have announced positive top-line results in a Phase II trial of the companies' Cariprazine therapy for the treatment of bipolar depression.
- The results come after Cariprazine also performed well in a Phase IIb trial for patients with Major Depressive Disorder. (PR)
- Forest is being acquired by Actavis (ACT).
Wednesday, Feb 199:11 AM
Wednesday, Feb 199:11 AM| 1 Comment
- Actavis' $25B acquisition of Forest Labs (FRX) represents "another validation of the activist investment philosophy," gloats Carl Icahn (IEP).
- The investor owns 11.4% stake in Forest and successfully agitated for change in a bruising battle with the company's previous management.
- Someone who bought Forest shares on November 16, 2009 - coincidentally the date that Icahn's investment was first made public - and kept the stock until now would have realized a total return of 209% vs 84% for the S&P 500.
- Over the period, Forest's market cap increased by almost $17B, a jump of over 193%.
- "We believe that our activism did much to help bring about the great result," Icahn says.
- However, he laments, Forest could have realized even more value had it listened to him from the get-go and not forced him to fight proxy battles.
Wednesday, Feb 198:42 AM
Wednesday, Feb 198:42 AM| Comment!
- Following a bit of skepticism from BMO yesterday about its $25B acquisition of Forest Labs (FRX), Actavis (ACT) gets some sell-side love as several firms give the latter a price target of $250, well above its close of $201.47.
- Goldman Sachs upgrades Actavis to Buy, saying the company is rapidly transforming into one of the fastest-growing names in their coverage.
- And while Buckingham and Barcap set price targets of $250, their upside cases are $274 and $275 respectively.
- Actavis shares are +2% to $205.52 premarket.
Tuesday, Feb 182:49 PM
Tuesday, Feb 182:49 PM| Comment!
- Actavis’ (ACT +7.3%) deal to acquire drug maker Forest Labs (FRX +29.4%) means significant fees for JPMorgan Chase (JPM +0.6%), the bank’s second apparent windfall in less than a week from advising on a big-ticket deal.
- JPM stands to earn $55M-$65M in fees as Forest’s adviser in the deal, NYT reports; the bank also stands to earn as much as $68M for its work on Comcast’s acquisition of Time Warner Cable.
- Greenhill (GHL +7.2%) is raking in the cash as ACT's longtime adviser, earning $50M-$59M on the Forest deal and is ACT's seventh acquisition in the past year; absent from today’s deal was Morgan Stanley (MS -0.4%), which advised on FRX’s deal to buy drugmaker Aptalis for $2.9B in January.
Tuesday, Feb 1812:47 PM|Tuesday, Feb 1812:47 PM| Comment!
Tuesday, Feb 189:13 AM
Tuesday, Feb 188:18 AM
Tuesday, Feb 188:18 AM| Comment!
- A couple of sell-side analysts express some surprise about Actavis' (ACT) $25B acquisition of Forest Labs (FRX).
- BMO: "We acknowledge the deal frenzy and EPS accretion deal environment, but are not convinced that such a deal makes strategic sense."
- Citi: "The potential combination of the two companies is somewhat surprising in our view, given their relatively limited overlap." Cit's note goes on, though: "However we acknowledge that their combination would better facilitate negotiation amongst a customer base that is also experiencing consolidation.”
- Notwithstanding, Actavis' shares are +11.3%, although down from earlier highs, while Forest is +33%.
Tuesday, Feb 187:34 AM
Tuesday, Feb 187:34 AM| Comment!
- Actavis (ACT) will pay $89.48 per share, comprised of $26.04 in cash and 0.3306 of an Actavis share. The price represents a premium of 25% over Forest Labs' (FRX) close on Friday of $71.39.
- The merger would create a company with combined forecast revenues of $15B in 2015 and free cash flow of over $4B.
- The firms project potential operating and tax synergies of $1B, not including manufacturing or revenue synergies.
- Actavis CEO Paul Bisaro will lead the new firm, while Forest CEO Brent will join Actavis' board. In total, three Forest directors will gain seats on Activis' board.
- "The combined company will create blockbuster product franchises in the CNS, Gastroenterology, Women's Health, Urology and Cardiovascular therapeutic categories," Activis says.
- Forest's shares surge 32%, while Activis soars 15.7%. (PR)
Tuesday, Feb 187:15 AM
Tuesday, Feb 182:00 AM
Tuesday, Feb 182:00 AM| 1 Comment
- Actavis (ACT) is in advanced negotiations to buy fellow pharmaceuticals provider Forest Laboratories (FRX) for up to $25B, the WSJ reports, adding that the deal could be announced today.
- The figure is above Forest's market cap of $19.3B at the close of trade on Friday and compares with Actavis' $33.4B.
- The acquisition would add to Actavis' recent purchase of Warner Chilcott and follow Forest's agreement in January to buy specialty-pharmaceutical company Aptalis Holdings.
- One reason for the tie-up is to allow the companies to better negotiate with customers amid consolidation between U.S. Hospitals, insurers and doctors.
- Carl Icahn could be set to benefit from the deal after he built up an 11.4% stake in Forest and successfully agitated for change in a bruising battle with the company's then management.
Tuesday, Jan 219:10 AM
Tuesday, Jan 218:20 AM
Tuesday, Jan 218:20 AM| Comment!
- Forest (FRX +8.4%) raises FY EPS outlook to $1.25-1.35 from prior guidance of $0.95-1.15 and vs consensus of $1.10.
- FQ3 net profit $18M vs a loss of $153.6M a year earlier.
- Adjusted EPS of $0.27 beats consensus by $0.23.
- Sales breakdown: Next-generation products +59% to $375.4M; Alzheimer's treatment Namenda +5.2% to $363.7M; hypertension drug Bystolic +20% to $130.7M. (PR)
Tuesday, Jan 217:06 AM
Tuesday, Jan 2112:05 AM
Monday, Jan 205:30 PM
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