Allied Securities Corporation Tracks Forrest Laboratories to Buy Aptalis Pharma
Allied Securities Corporation follows Forrest Laboratories Inc as the Alzheimer drug maker buys out closely held Aptalis Pharma for $2.9 billion.
New York, New York, March 24, 2015 (Newswire.com) - Makers of the well selling Alzheimer medication Namenda, Forrest Laboratories Inc has agreed to buy the closely held Aptalis Pharma in a $2.9 billion cash deal. The purchase is the first buy the company since its new CEO Brent Saunders took the helm at Forrest on October1st last year and is in response to declining sales revenues from losses of patent protection.
Expiring protection on medication patents has affected many pharmaceutical companies over the last 12 months and Forrest has been no exception. With the expiry on patent projections, Forrest’s number one selling drug, the antidepressant medication Lexapro saw sales freefall to $194.9 million last year, down from $2.13 billion for the year before.
“The pharmaceutical industry lost some $60 billion to generic manufacturers after patents expired between 2010 and 2012; this is a massive loss in revenues and has seen a lot of buyouts and amalgamations as a result in the sector. Forrest who still maintains a very cash rich operation with sales of some $3.09 billion in the last year is simply acting while they could still expend such amounts to guarantee future revenues” observed Dr. Phillip Moars, Medical and Pharmaceuticals Advisor at Allied Securities Corporation.
With the successful purchase of Aptalis and reports that Forrest may continue to spend upwards of $240 million to buy the rights for schizophrenia treatment Saphris from a subsidiary of Merck & Co, the markets responded in an extremely positive manner, driving shares in Forrest up 17% the largest intraday trade since March 1998. Forrest share value has advanced some 59% in the last 12 months.
“There aren’t many companies in any industry that shrug of a $2 billion loss in sales and not only continue but thrive, Forrest is one of them. They’ve shown that they can mark some very smart acquisitions and aren’t afraid to pay serious sums to gain them if they improve future revenue, investors of course love to see this being so well executed” stated Dr. Phillip Moars of Allied Securities Corporation.