Boston, MA 01\/09\/2013 (wallstreetpr) – Drugmaker Forest Laboratories, Inc. (NYSE:FRX) is investing $2.9 billion to acquire pharmaceutical firm Aptalis. This is the company\u2019s first major acquisition in 2014 and a lot of hopes are tied to it as regards the growth of FRX.<\/p>\n
Following this acquisition, the drug maker expects to boost its revenue by about $700 million by 2015. This deal will also have impact on the company\u2019s earnings per share (EPS), which is expected to hit $0.78 in 2014, special items included. The company\u2019s chief executive Brent Saunders disclosed this in a news release to media agencies.<\/p>\n
The optimism that surrounds this acquisition is that the company believes that it will be able to increase its present line of products as well as that of Aptalis. Basically, Forest Laboratories, Inc. (NYSE:FRX) seeks to create a blockbuster in the therapeutic area. But can this dream be attained as easily as it sounds?<\/p>\n
This leads to another aspect of this deal. That besides the acquisition resulting in revenue growth, it will also help in cost saving. It is estimated that Forest Laboratories, Inc. (NYSE:FRX) could end up saving as much as $125 million in its operations in the combined company.<\/p>\n
Transaction<\/b><\/p>\n
The transaction to takeover Aptalis is believed to be all-cash. This deal requires the nod of regulators in the U.S. and Canada to go through. And if it does, it will be a big win for investors of Forest Laboratories, Inc. (NYSE:FRX) going by the already discussed growth and cost saving opportunities.<\/p>\n
Shares of Forest Laboratories, Inc. (NYSE:FRX) soared on the news of this planned acquisition. Visibly investors are buying into the company\u2019s growth prospects which now look more attractive than that of most of its peers.<\/p>\n
Profile<\/b><\/p>\n
Aptalis which is now being acquired by Forest Laboratories, Inc. (NYSE:FRX) is owned by TPG and has its operations in Europe and U.S. The company develops and manufactures drugs targeted at gastrointestinal and cystic fibrosis.<\/p>\n
On the other hand, Forest Laboratories, Inc. (NYSE:FRX) makes drugs that treat illnesses of respiratory system, cardiovascular, central nervous and gastrointestinal.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 01\/09\/2013 (wallstreetpr) – Drugmaker Forest Laboratories, Inc. (NYSE:FRX) is investing $2.9 billion to acquire pharmaceutical firm Aptalis. This is the company\u2019s first major […]<\/p>\n","protected":false},"author":9,"featured_media":13502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[4320,4321],"stock_ticker":[],"class_list":["post-13501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-forest-laboratories-inc-nysefrx","tag-nysefrx","entry"],"acf":[],"yoast_head":"\n