Forest Labs 1st-qtr 2011 profit more than doubles

US drugmaker Forest Laboratories (NYSE: FRX) reported profit of $258.1 million and earnings per share of $0.90 in the first quarter of fiscal 2012. Net sales for the quarter increased 8.2% to $1.1 billion, from $1.0 billion in the year-ago period, up from $117.48 million or $0.39 per share in the prior-year quarter.

Excluding a charge of $40.0 million, or $0.14 per share net of tax for a new product licensing fee, non-GAAP earnings per share for the first fiscal quarter were $1.04 per share. The new product licensing fee is related to the previously announced agreement with Blue Ash Therapeutics) for azimilide, a novel antiarrhythmic agent. Analysts expected a profit of $0.98 per share and $1.12 billion in revenue, according to FactSet. Shares of Forest rose $0.48 to $38.43 in morning trading yesterday.

The reported earnings were after a charge of $148.4 million or $0.39 per share net of tax, related to the settlement with the US Department of Justice stemming from investigations led by the DoJ and the US Attorney’s Office for the District of Massachusetts, and a charge of $50.0 million or $0.17 per share net of tax for a new product licensing fee, related to Forest’s agreement with TransTech Pharma for a novel class of glucose-lowering agents for the treatment of diabetes.