Forest Laboratories Inc, which is facing patent expirations on several of its biggest drugs, on Monday said it plans to purchase rights to a new schizophrenia treatment from Merck & Co and cut annual operating costs by $500 million in fiscal 2016.The specialty drugmaker said it will acquire rights to the oral drug, Saphris (asenapine), for an upfront payment of $240 million to Merck and additional payments on defined sales milestones. The product, which was approved in 2009, is also used to treat acute bipolar mania.Saphris has been a poor seller for Merck, which earlier this year took $330 million in write-offs on the drug, due to reduced sales expectations for the product. It was acquired by Merck through its merger in 2009 with Schering-Plough Corp.Forest, whose shares rose more than 6 percent, said it would issue $1 billion in new long-term debt through an offering of eight-year senior unsecured fixed-rate notes. Proceeds from the offering will also be used to fund share repurchases and for general corporate purposes, the company said.
Forest Laboratories, Inc. (Forest) develops, manufactures and sells branded forms of ethical drug products, which requires a physician's prescription. Shares of FRX traded higher by 6.55% or $3.3625/share to $54.67. In the past year, the shares have traded as low as $34.51 and as high as $52.07. On average, 1526580 shares of FRX exchange hands on a given day and today's volume is recorded at 3443382.
Merck & Co., Inc. (Merck) is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. Shares of MRK traded higher by 0.2% or $0.1/share to $49.93. In the past year, the shares have traded as low as $40.02 and as high as $50.16. On average, 14328700 shares of MRK exchange hands on a given day and today's volume is recorded at 4867073.
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