Forest Laboratories snags Clinical Data at a discount Print E-mail
By Staff and Wire Reports   
Tuesday, 22 February 2011 09:40
Forest Laboratories Inc. is buying Clinical Data Inc, who recently won FDA approval for their anti-depressant, Viibryd; in a $1.2 billion deal.

In order to gain access to that antidepressant, Forest is reportedly paying $30 per share, a discount of nearly 12 percent from Friday's closing price of the stock of Clinical Data of Newton, Mass. Forest also will pay an extra $6 per share if sales of the recently approved antidepressant, Viibryd, achieve certain milestones.

New York-based Forest makes the blockbuster antidepressant Lexapro. It says the deal will dilute earnings for the next three years and may add to earnings afterward.

Forest had been actively looking to license new drugs to replace their top-selling Lexapro, an antidepressant that accounts for 56 percent of the company’s sales and is set to lose patent protection next year. Forest aims to leverage its existing sales force to turn Viibryd into a product with more than $1 billion in annual sales.

“ We believe that we are uniquely positioned to bring Viibryd to market in light of our long and successful experience of clinical development and expertise in the antidepressant market,” Forest Chief Executive Officer Howard Solomon said in the statement.

Today's news comes as Merck tells the Wall Street Journal that it doesn't expect to make big acquisitions this year. Instead, the pharmaceutical company could pursue alliances, license purchases or smaller takeovers,

 




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