Forest Labs 1st-qtr profit slumps 53%, on charges, Lexapro competition

US drugmaker Forest Labs (NYSE:FRX) has reported fiscal 2013/14 first quarter (ended June 30) profit of $23.3 million, or $0.09 per share, down 53% from $55.3 million, or $0.21 a share, in the like, year-earlier quarter.

Revenue increased 1.4% to $832.9 million, beating expectations of $808 million and $0.08 per share of analysts polled by Thomson Reuters. Excluding acquisition related amortization and specified items, non-GAAP earnings per share in the first fiscal quarter of 2014 and 2013 was $0.28 for both periods. First quarter 2014 earnings were higher than anticipated primarily due to timing of spending for research and development expenses, the company noted.

Net sales for the quarter increased 6.0% to $796.9 million, from $751.8 million in the prior year quarter. The increase in sales was driven by sales of the company’s next generation products which totaled $294.1 million, an increase of 47.8% compared with the first quarter of fiscal 2013, partially offset by a decline in sales of Lexapro (escitalopram oxalate), which is facing generic competition