Forest Lab's earnings plunge 79%, hit by generic Lexapro

US drugmaker Forest Laboratories (Nasdaq: FRX) yesterday reported that net income for the quarter ended June 30, 2012, was down 79% as a results of generic competition for its Lexapro (escitalopram oxalate). Net income at Forest, which is a proxy fight with billionaire investor Carl Icahn, sank to $55.3 million or $0.21 per share compared to $258.1 million or $0.90 per share reported for last year’s first quarter.

Reported earnings per share in the first quarter of fiscal 2012 were $0.90 after a charge of $40.0 million or $0.14 per share net of tax, related to a new product licensing agreement with Blue Ash Therapeutics for azimilide, a novel antiarrhythmic agent. Excluding acquisition related amortization in both periods presented and the Blue Ash charge in last year’s first quarter, non-GAAP EPS in the first fiscal quarter of 2013 equaled $0.28 as compared with $1.07 in the first quarter of fiscal 2012.

Net sales for the quarter decreased 31.9% to $751.8 million, from $1.1 billion in the year-ago period, falling short of analysts’ estimates of $830.3 million. Sales of Lexapro), for major depressive disorder initial and maintenance treatment of MDD in adults and adolescents and generalized anxiety disorder in adults were $110.0 million compared with $585 million. The drug’s patent expired in March.