Forest Laboratories

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Forest Laboratories, Inc.
IndustryPharmaceutical industry
Founded1956; 63 years ago (1956)
DefunctJuly 1, 2014; 4 years ago (July 1, 2014)
HeadquartersNew York City
Key people
Brenton L. Saunders (CEO)
RevenueIncrease $3.646 billion (2013)
Increase $0.165 billion (2013)
Total assetsIncrease $12.017 billion (2013)
Total equityIncrease $6.165 billion (2013)
Number of employees
6,200
Websitewww.frx.com/ Edit this on Wikidata
Footnotes / references
[1]

Forest Laboratories was a company in the pharmaceutical industry incorporated in Delaware, with its principal office in New York City. It was known for licensing European pharmaceuticals for sale in the United States. On July 1, 2014, the company was acquired by Actavis (now Allergan).

History[edit]

The company was founded by Hans Lowey in 1956 as a small laboratory service company.[2]

In 1967, the company became a public company via an initial public offering.[3]

In 1977, Howard Solomon became the chief executive officer of the company.[3]

In 1984, the company acquired O'Neal Jones & Feldman for $8.8 million after a federal investigation resulted in one of its drugs being recalled.[4][2]

On July 17, 1998, the company received approval from the Food and Drug Administration for Celexa (Citalopram), an antidepressant.[5]

In 2000, the company cut ties with Warner-Lambert for the marketing of Celexa after Warner-Lambert was acquired by Pfizer.[6]

On August 16, 2002, the company received approval from the Food and Drug Administration for Lexapro (Escitalopram), an updated version of Celexa.[7]

In 2013, Solomon retired as chief executive officer of the company.[8]

In February 2014, the company acquired Aptalis for $2.9 billion.[9]

On July 1, 2014, the company was acquired by Actavis (now Allergan).[10] The sale of the company came after pressure from Carl Icahn, the largest shareholder.

Products[edit]

Some of the products Forest Laboratories marketed with its partners included:

Controversies[edit]

Illegal distribution and promotion of medicines[edit]

In September 2010, the company agreed to pay $313 million to resolve allegations of civil and criminal liability relating to felony, obstruction of justice, and the illegal distribution and promotion of pharmaceuticals, charges to which it pled guilty. One of the pharmaceutical-related charges was a misdemeanor charge of illegally promoting the Celexa and Lexapro for unapproved uses in treating pediatric depression. The other drug-related charge was a misdemeanor charge of distributing the unapproved drug Levothroid in violation of the Federal Food, Drug, and Cosmetic Act. Certain of the criminal activities were revealed with the help of whistleblowers, who received $14 million from the settlement.[11][12][13]

Tax avoidance via transfer pricing[edit]

In 2010, the company was criticized for legally moving its profits offshore via transfer pricing.[14]

Notes[edit]

  1. ^ "Forest Laboratories, Inc. 2013 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ a b DOYLE, JIM (October 4, 2010). "Forest's push for profits led to drugmaker's woes". St. Louis Post-Dispatch.
  3. ^ a b "A CEO and His Son". Bloomberg Businessweek. May 27, 2002.
  4. ^ "BRIEFS". The New York Times. November 14, 1984.
  5. ^ "Forest Labs' longtime CEO Solomon to step down at year-end". Food and Drug Administration. July 17, 1998.
  6. ^ "Forest Labs cuts W-L tie". CNN. May 12, 2000.
  7. ^ "FOREST AND LUNDBECK WIN APPROVAL FOR ANTIDEPRESSANT". The New York Times. Bloomberg News. August 16, 2002.
  8. ^ Humer, Caroline (May 23, 2013). "Forest Labs' longtime CEO Solomon to step down at year-end". Reuters.
  9. ^ "Forest Laboratories, Inc. Completes $2.9B Acquisition of Aptalis" (Press release). Business Wire. February 3, 2014.
  10. ^ "Actavis Completes Forest Laboratories Acquisition" (Press release). PR Newswire. July 1, 2014.
  11. ^ "OIG Fact Sheet on Forest Laboratories, Inc., and the Inspector General's Exclusion Authorities" (Press release). Office of Inspector General. May 10, 2011.
  12. ^ Volkmann, Kelsey (September 15, 2010). "Forest Pharmaceuticals to plead guilty, pay $313M". American City Business Journals.
  13. ^ Singer, Natasha (September 15, 2010). "Forest, Maker of Celexa, Settles Marketing Claims". The New York Times.
  14. ^ Drucker, Jesse (May 13, 2010). "Forest Laboratories' Globe-Trotting Profits". Bloomberg Businessweek.