NEW YORK (Reuters) - Forest Laboratories Inc <FRX.N> reported a 9 percent decline in quarterly profit on Tuesday on higher sales and administrative costs, but results were better than expected and the company forecast fiscal-year earnings ahead of analyst projections.
The New York-based company posted net income of $242.9 million, or 79 cents per share, for its fiscal first quarter, compared with a profit of $268.2 million, or 83 cents per share, a year earlier.
Results included a one-time 8-cent per share charge related to a previously announced termination of a co-promotion deal.
Excluding the charge, earnings of 87 cents were 7 cents ahead of the average estimate of analysts, according to Reuters Estimates.
Net sales rose 6.1 percent to $893.7 million. Sales of its flagship Lexapro antidepressant rose 5.6 percent to $583.1 million.
Sales of its Namenda Alzheimer's disease drug rose 14 percent to $218.6 million.
Selling, general and administrative expenses increased 31.2 percent to $343 million, including the charge related to ending the co-promotion deal.
The company projected fiscal-year earnings of a range of $3.20 to $3.30 per share, excluding the co-promotion charge. On that basis, analysts expect $3.19.
Forest is trying to build up its product portfolio before Lexapro and Namenda lose U.S. patent protection expected in the early part of next decade. Its shares have fallen 3 percent this year.
(Reporting by Lewis Krauskopf, editing by Maureen Bavdek)
