Forest Laboratories Inc. F1Q10 (Qtr End 06/30/09) Earnings Call Transcript

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2009-07-21 14:44:24.0

Tags: Forest Laboratories Inc., Call Transcript, Earnings, Savella, Sales Strategy, Sales Force Management, Marketing Research, Sales, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). And our first question comes from Tim Chiang with FTN Equity Capital.

Tim Chiang - FTN Equity Capital

I had a question about some of the guidance numbers that you provided last quarters and sort of given the strong uptake of Savella, why you're not taking up guidance on that product today. Also, on Lexapro it looks like sales are down about 3% but you're looking for flat Lexapro sales for the fiscal year. Are you expecting some form of a rebound in the second half? Thanks.

Larry Olanoff

On the Lexapro sales we're still projecting flat sales versus last year, as I mentioned earlier in this call, the adolescent claim is just getting fully launched now and we believe that will support as well as other measures we took last year, will support an essentially flat total revenue that's taking into account this year's price increase as well as what we see as somewhat higher than projected increase in the market growth for the class as a whole.

So we're still confident in that in terms of that number. As far as Savella, granted the number we gave, initially may still appear a bit conservative, but it's still very early on in the game. While that number may, in fact, be a little higher at the end of the year, than what we had projected, we don't see it at this point reason to change our overall earnings forecast.

Tim Chiang - FTN Equity Capital

Just a quick follow-up, have you guys shifted a pretty significant amount of your marketing resources over to Savella from Lexapro?

Larry Olanoff

We've shifted some sales calls from Lexapro over to Savella, as we shifted sales calls from all of our products over to Savella as part of the early launch phase, but we believe we're still supporting all our products adequately, we still have a leadership position in terms of numbers in details in each of our categories, each of our four major product. So, we're very comfortable where we are in terms of [costs] behind these products.

Frank Perier

Tim, we're still putting what I would classify as significant investments spend behind Lexapro from both a sales force and marketing standpoint.

Operator

Your next question is from Greg Gilbert with Bank of America.

Greg Gilbert - Bank of America

Given your statements about SG&A, Frank, can we assume that there won't be a meaningful increase in SG&A until you launch another primary care product, and could that number even creep down a bit as you get through launch phase on Bystolic and Savella?

 

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