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, with annual revenue of about $150 million, has been a commercial disappointment for Merck. Earlier this year, Merck took $330 million in write-offs on the drug due to reduced sales expectations for it. Merck acquired the product through its merger in 2009 with Schering-Plough Corp.Forest Chief Executive Brent Saunders said his company plans to ramp up sales of Saphris, using 250 sales representatives dedicated to psychiatric products.
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 8.59% or $4.41/share to $55.72. 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 4612721.
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 0.88% or $0.44/share to $50.27. 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 9629727.
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