Forest Laboratories "outperform," estimates reduced

10/01/07 - Credit Suisse

NEW YORK, October 1 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Forest Laboratories Inc (FRX), while reducing their estimates for the company. The target price is set to $60.

In a research note published on September 28, the analysts mention that the FDA has approved Azor, which is a fixed dose combination of antihypertensive drugs olmesartan medoxomil and amlodipine besylate. Azor, which is an extension to the Benicar franchise, is likely to negatively impact the sales for Benicar going forward, the analysts say. The EPS estimate for FY08 has been raised from $3.26 to $3.03, to reflect the milestone payments of $90 million for the Azor and linaclotide deals.