Forest Laboratories
Forest Laboratories, Inc. was an American pharmaceutical company engaged in the development, manufacturing, and marketing of branded generic and proprietary drugs, primarily targeting central nervous system disorders, hypertension, and related therapeutic areas.[1][2] Founded in 1956 in New York as a laboratory service provider to larger drug firms, it evolved into a specialty pharmaceutical entity known for licensing and commercializing European-developed medications for the U.S. market.[3] The company achieved notable commercial success with products including the selective serotonin reuptake inhibitors escitalopram (Lexapro) and citalopram (Celexa), as well as memantine (Namenda) for Alzheimer's disease management, which drove substantial revenue in the central nervous system sector.[3][4] Forest Laboratories encountered defining legal challenges, settling federal investigations for over $313 million in 2010 over off-label promotion of antidepressants and thyroid drugs, and an additional $38 million in 2016 for alleged physician kickbacks via sham speaker programs.[5][6] Further antitrust scrutiny arose from strategies to extend Namenda's market exclusivity by delaying generic competition through authorized generics and reformulations.[7] In 2014, Actavis plc acquired Forest Laboratories for approximately $25 billion in cash and stock, merging its neuroscience and other franchises into a combined entity with enhanced global scale.[8][9]History
Founding and Early Development (1956–1970s)
Forest Laboratories was established in 1956 by Hans Lowey in Manhattan, New York, initially operating as a small laboratory service company that provided research and development support to larger pharmaceutical firms.[10] Lowey, who served as the company's chairman and chief executive officer, focused on innovative formulations, including the development of time-release pills that enabled sustained drug delivery, marking an early emphasis on specialized pharmaceutical technologies.[10] The company experienced steady demand for its services during the late 1950s and early 1960s, establishing a niche in supporting external R&D needs amid growing pharmaceutical industry complexity.[3] In 1967, Forest Laboratories went public through an initial public offering, providing capital for expansion while maintaining its service-oriented model with limited in-house manufacturing.[3] By the mid-1970s, Forest faced challenges including allegations against Lowey of profit inflation through accounting practices.[3] An internal investigation by executive Howard Solomon substantiated the claims, leading to Lowey's resignation in 1977 and Solomon's appointment as CEO, which initiated a strategic pivot toward greater focus on proprietary product licensing.[11]Expansion and Public Listing (1980s–1990s)
In the 1980s, Forest Laboratories, already a public company since its 1967 initial public offering, pursued aggressive expansion under CEO Howard Solomon by acquiring complementary assets and shifting strategic focus toward branded pharmaceuticals. In 1984, the company purchased O'Neal, Jones & Feldman Inc., a pharmaceutical sales organization, to significantly enhance its marketing capabilities and sales force.[3] This move supported a mid-decade pivot from generic drugs to licensing proprietary, brand-name products developed by others, thereby mitigating the financial risks of in-house research and development while leveraging Forest's sales expertise for U.S. distribution.[3] In 1985, Forest acquired rights to the Esgic analgesic product line through the purchase of Gilbert Laboratories, further diversifying its portfolio.[12] A pivotal acquisition occurred in 1986 when Forest obtained Aerobid, a flunisolide-based inhaled steroid for asthma treatment, which initially generated $2.3 million in annual sales but became a key revenue driver under Forest's promotion, reaching substantial market penetration by the early 1990s.[3][13] That year, the company also announced plans to expand its sales force to 135 representatives, aligning with 49% volume growth to $39.7 million and a 75% cash increase to $31.6 million for fiscal 1986.[14] In 1989, Forest acquired UAD Laboratories for $33 million in stock, extending its sales infrastructure and product offerings in specialty pharmaceuticals.[3][12] The 1990s marked sustained revenue expansion, with annual sales reaching approximately $133 million by 1990—including $30 million in profits—and climbing to $176 million amid broader portfolio growth.[3] Key introductions included Levothroid, a hypothyroidism treatment distributed starting in the early 1990s, and Celexa (citalopram), an antidepressant licensed and launched in 1998, which rapidly became a blockbuster contributing nearly 70% of revenues by the late decade.[15][16] This period solidified Forest's model of in-licensing European or late-stage assets for U.S. commercialization, fueling public market valuation as a nimble specialty pharmaceutical player.[3]Product Pipeline Growth and Licensing Deals (2000s)
In the early 2000s, Forest Laboratories expanded its product pipeline through strategic in-licensing agreements, focusing on central nervous system disorders and cardiovascular therapeutics to diversify beyond its antidepressant portfolio. A key deal in March 2000 involved a joint development, license, and supply agreement with German firm Merckle GmbH for ML3000, an investigational treatment for allergic rhinitis, reflecting Forest's approach to acquiring late-stage assets from European partners for U.S. commercialization.[17] Later that year, in November 2000, Forest secured U.S. rights to memantine from Merz Pharmaceuticals under an exclusive license agreement, targeting Alzheimer's disease treatment; the new drug application (NDA) was submitted in 2002 and approved by the FDA on October 16, 2003, as Namenda for moderate-to-severe dementia, marking Forest's entry into the growing Alzheimer's market.[18][19] These agreements underscored Forest's model of minimizing internal R&D costs by partnering with innovators abroad, enabling pipeline advancement with lower risk. The pipeline's momentum accelerated with the 2002 launch of Lexapro (escitalopram oxalate), licensed earlier from Lundbeck but achieving FDA approval on August 14, 2002, for major depressive disorder, followed by generalized anxiety disorder in 2003; annual sales projections reached $2 billion by the mid-2000s, driving double-digit revenue growth.[20] Complementing this, Namenda's post-approval uptake contributed to Forest's shift toward blockbuster potential in neurology, with combined Lexapro and Namenda sales forming the core of promoted products by 2007.[3] Further deals included a November 2000 license from Italian firm Recordati for lercanidipine, a calcium channel blocker for hypertension, though it faced development hurdles and did not reach U.S. approval.[18] By mid-decade, Forest pursued additional partnerships, such as the 2006 co-promotion and licensing arrangement with Mylan Laboratories for nebivolol (later Bystolic), involving a $75 million upfront payment and milestones for the beta-blocker hypertension drug, approved by FDA in 2007.[21] These initiatives bolstered Forest's pipeline depth, with NDA filings and approvals emphasizing high-margin branded products over generics, leading to sustained quarterly growth in key therapeutics like antidepressants and Alzheimer's agents through the decade.[2] Licensing continued to prioritize compounds with established safety profiles from international developers, mitigating regulatory uncertainties while positioning Forest for U.S. market exclusivity.[3]Late-Stage Challenges and Strategic Shifts (2010–2014)
In the early 2010s, Forest Laboratories encountered significant revenue pressures from impending patent expirations on its blockbuster drugs, notably Lexapro (escitalopram), which lost market exclusivity in March 2012 after generic competition entered the U.S. market.[22] This led to a 40% drop in Lexapro sales to $355.8 million in the fiscal third quarter of 2012, contributing to an overall 7% revenue decline to $1.06 billion for that period.[22] Similarly, Namenda (memantine), an Alzheimer's treatment, faced generic challenges, prompting Forest to discontinue the immediate-release formulation in August 2014 to encourage switching to the extended-release Namenda XR version, a move criticized for potentially disrupting patient care amid patent defenses extending to 2029.[23] These "patent cliffs" exacerbated earnings volatility, with net income falling to $22.6 million (7 cents per share) in fiscal Q4 2010 from $92.8 million the prior year, and further profit outlook cuts in 2012 to 65-80 cents per share.[24] [25] Compounding these commercial hurdles were regulatory and legal setbacks, including a September 2010 guilty plea by subsidiary Forest Pharmaceuticals to a single count of misbranding under the Food, Drug, and Cosmetic Act for off-label promotion of Bextra (an anti-inflammatory) and promotion of Celexa (citalopram) beyond FDA-approved doses.[26] The settlement required a $313 million payment, comprising a $150 million criminal fine, $14 million forfeiture, and $149 million in civil liabilities, marking one of the largest healthcare fraud resolutions at the time.[27] Activist investor Carl Icahn, who built a substantial stake, publicly criticized management in 2012 for inadequate preparation for the Lexapro revenue loss, estimating an 80% earnings decline and advocating for board changes and strategic overhauls.[28] To counter these pressures, Forest implemented cost-cutting measures, including workforce reductions and operational efficiencies announced in early 2014, alongside pipeline diversification through acquisitions such as the $2.9 billion purchase of Aptalis Pharma in February 2014 to expand into gastrointestinal therapeutics.[29] These efforts aimed to offset CNS portfolio erosion, but persistent challenges culminated in a strategic pivot via merger: on February 17, 2014, Actavis announced a $25 billion acquisition of Forest (valued at $89.48 per share in cash and stock), completed on July 1, 2014, after FTC-mandated divestitures of generic products to preserve competition.[8] [30] This transaction provided Forest shareholders with a premium exit amid limited internal growth options, integrating its assets into Actavis's broader generics and specialty portfolio.[31]Corporate Operations
Leadership and Key Executives
Howard Solomon served as president and chief executive officer of Forest Laboratories from 1977 until September 2013, during which time the company grew from a small specialty pharmaceutical firm into a major player in the antidepressant market through strategic licensing deals, such as the acquisition of rights to escitalopram (Lexapro) from Lundbeck in 1997.[32] Solomon, who joined the company in 1972 and became its controlling shareholder, emphasized a model of in-licensing innovative drugs rather than internal development, which drove revenues from under $100 million in the early 1990s to over $3.6 billion by 2013.[33] His leadership was marked by family involvement, including employing relatives, and controversy over executive compensation, as he received over $92 million in 2005 alone amid shareholder activism from investors like Carl Icahn.[34] Solomon retained the chairman role post-CEO transition until Forest's $25 billion acquisition by Actavis in July 2014, after which he received approximately $46.7 million in merger proceeds.[35] In September 2013, Brent L. Saunders succeeded Solomon as CEO and president, bringing experience from roles including CEO of Bausch + Lomb and prior positions at Schering-Plough and Merck.[36] Saunders, who had joined Forest's board in August 2011, focused on pipeline expansion and operational efficiency in the lead-up to the Actavis merger, where he continued as CEO and board member of the combined entity.[37] Concurrent with Saunders' appointment, Forest bolstered its executive team; in December 2013, Robert Bailey was named senior vice president, chief legal officer, general counsel, and corporate secretary, while Alex Kelly became senior vice president of investor relations and strategic communications.[38] The board of directors under Solomon included independent members and faced scrutiny from activist investors, but specific compositions varied; post-merger, Actavis executive Paul Bisaro assumed the role of executive chairman of the enlarged company.[39] Key executives during the 2010–2014 period emphasized commercial execution for products like Namenda and Savella, with limited internal R&D leadership until strategic hires like a chief scientific officer in 2013.[40]Research and Development Efforts
Forest Laboratories primarily directed its research and development (R&D) efforts toward central nervous system (CNS) disorders, including schizophrenia, bipolar mania, depression, and Parkinson's disease, alongside select areas in hypertension, pulmonary conditions, and pain management.[2][41] The company emphasized in-licensing late-stage assets and strategic partnerships over extensive early-stage discovery, investing approximately $50–75 million upfront to advance promising candidates into its pipeline for faster market entry.[42] A key pillar of these efforts involved collaborations with international partners, notably Gedeon Richter Ltd., which focused on CNS therapeutics. In 2005, the partnership expanded to include two novel CNS compounds, leveraging Richter's expertise in schizophrenia, anxiety, chronic pain, and depression.[43] This alliance yielded cariprazine, an atypical antipsychotic; positive Phase III results for schizophrenia and bipolar mania were announced in 2011, leading to a New Drug Application submission to the FDA in November 2012 for both indications.[44][45] Phase IIb data for cariprazine as an adjunctive therapy for major depressive disorder showed efficacy in 2014.[46] Other notable R&D initiatives included licensing agreements for CNS-focused assets, such as a $75 million deal in December 2008 with Pierre Fabre Medicament for F2695, a compound targeting CNS diseases with rights for U.S. and Canadian development.[47] In November 2012, Forest partnered with Adamas Pharmaceuticals on a fixed-dose combination of memantine and amantadine for levodopa-induced dyskinesia in Parkinson's disease, aligning with an FDA-agreed development plan targeting a 2015 launch post-approval.[48] These efforts reflected a pragmatic approach prioritizing compounds with demonstrated clinical potential in high-unmet-need CNS areas. By late 2013, amid pipeline pressures and patent expirations, Forest initiated "Project Rejuvenate," a restructuring plan to achieve $500 million in annual cost savings by 2016, with over half ($270 million) targeted at R&D through reduced spending and pipeline prioritization.[49][50] This shift underscored a move toward efficiency, focusing resources on high-value late-stage assets rather than broad exploratory research, consistent with the company's historical model of leveraging external innovation.[42]Manufacturing and Global Reach
Forest Laboratories maintained manufacturing operations primarily in the United States, with facilities focused on production, packaging, and quality control for its branded and generic pharmaceuticals.[18] The company operated a 22,000-square-foot facility in St. Louis, Missouri, dedicated to manufacturing and production activities.[18] Additional production capabilities included tablet, capsule, and liquid formulation lines in Ohio, with packaging performed at sites in Missouri and New York.[51] In Cincinnati, Ohio, Forest expanded its manufacturing footprint by adding 65,000 square feet to an existing operation, enhancing capacity for prescription drug output.[16] New York facilities, including those in Commack and Farmingdale, supported production under current Good Manufacturing Practice (cGMP) standards, employing over 200 staff in manufacturing and quality roles.[52] [18] Internationally, Forest established a presence through its subsidiary Forest Laboratories Ireland Limited, which owned a 130,000-square-foot manufacturing and distribution facility in Dublin, Ireland, operational as of 2003.[18] This site facilitated production and logistics for European markets, reflecting the company's modest global manufacturing footprint beyond the U.S.[16] Forest's international reach extended to sales and distribution of branded and generic drugs in Europe, though primary revenue and operations remained U.S.-centric.[16] Post-acquisition by Actavis in July 2014, several U.S. sites, including the Earth City, Missouri location, were deemed redundant and scheduled for closure by 2015, signaling a consolidation of manufacturing under the acquiring entity's global network.[53] [54]Products and Pipeline
Antidepressant Portfolio
Forest Laboratories developed and marketed several antidepressants, primarily selective serotonin reuptake inhibitors (SSRIs), which formed a cornerstone of its revenue through the 2000s. The company licensed U.S. rights to citalopram (Celexa), an SSRI for major depressive disorder in adults, from H. Lundbeck A/S; the FDA approved Celexa tablets on July 17, 1998.[55] Celexa generated peak annual U.S. sales exceeding $1 billion before generic competition intensified after its patent expiration in 2003, extended briefly by pediatric exclusivity.[17] Escitalopram (Lexapro), the S-enantiomer of citalopram, served as a follow-on product to extend the franchise; the FDA approved Lexapro tablets on August 14, 2002, also for adult major depressive disorder.[20] Lexapro achieved blockbuster status with U.S. sales surpassing $2 billion annually by 2011, bolstered by its efficacy in generalized anxiety disorder (approved December 2003) and adolescent depression (approved March 2009).[56] As Lexapro's patent neared expiration in 2012, Forest pursued pipeline diversification through acquisitions. In February 2011, Forest acquired Clinical Data for $1.2 billion to gain vilazodone (Viibryd), an SSRI with partial 5-HT1A agonism; the FDA approved Viibryd on January 21, 2011, for adult major depressive disorder.[57] This bolstered the portfolio amid SSRI patent cliffs. Later, in partnership with Pierre Fabre, Forest launched levomilnacipran (Fetzima), a serotonin-norepinephrine reuptake inhibitor (SNRI); the FDA approved Fetzima extended-release capsules on July 25, 2013, for adult major depressive disorder.[58] Fetzima targeted patients unresponsive to SSRIs, though uptake was modest before Forest's 2014 acquisition by Actavis.[59] These products underscored Forest's strategy of licensing and late-stage investments to sustain antidepressant market share, despite regulatory scrutiny over off-label pediatric promotion of earlier SSRIs.[60]Neurological and Other Therapeutics
Forest Laboratories marketed Namenda (memantine hydrochloride), an uncompetitive NMDA receptor antagonist approved by the U.S. Food and Drug Administration (FDA) on October 16, 2003, for the treatment of moderate to severe Alzheimer's disease in adults. The drug modulates glutamate activity to mitigate excitotoxicity in neuronal cells, with clinical trials demonstrating modest improvements in cognitive function, activities of daily living, and global assessments when used alone or adjunctively with cholinesterase inhibitors. In July 2010, Forest launched Namenda XR, an extended-release capsule formulation enabling once-daily dosing, which generated peak annual U.S. sales exceeding $2 billion by fiscal year 2013 before generic competition eroded market share following patent expiry in 2015.[61] To prolong branded revenue, Forest discontinued immediate-release Namenda tablets effective August 15, 2014, shifting focus to the XR version amid criticism for potentially disrupting patient access during the transition.[61] In the domain of psychiatric neurology, Forest advanced cariprazine, a dopamine D3-preferring D2/D3 receptor partial agonist with high affinity for serotonin 5-HT1A receptors, targeting atypical antipsychotic effects with reduced extrapyramidal symptom risk.[45] The company submitted a New Drug Application (NDA) to the FDA on November 29, 2012, seeking approval for acute treatment of schizophrenia and manic or mixed episodes in bipolar I disorder, supported by Phase III trials showing superior efficacy over placebo on Positive and Negative Syndrome Scale (PANSS) total scores and Young Mania Rating Scale (YMRS) improvements.[45] Additional data from a Phase IIb study indicated potential adjunctive benefits in major depressive disorder when combined with antidepressants, though primary focus remained on neurological indications.[62] Beyond core neurological agents, Forest's portfolio included Savella (milnacipran hydrochloride), a selective serotonin and norepinephrine reuptake inhibitor (SNRI) approved by the FDA on January 14, 2009, for fibromyalgia management in adults aged 18 and older.[63] Unlike antidepressants in its class, Savella's labeling emphasized pain reduction and functional improvement in this central sensitization disorder, with Phase III trials reporting statistically significant decreases in pain scores and improvements in Patient Global Impression of Change versus placebo.[63] Sales reached approximately $100 million annually by 2011, complementing Forest's central nervous system expertise despite fibromyalgia's debated pathophysiology involving amplified pain signaling rather than primary neurodegeneration.[64] In cardiovascular therapeutics, Forest commercialized Bystolic (nebivolol), a third-generation beta-1 selective adrenergic blocker with nitric oxide-mediated vasodilatory properties, following acquisition of U.S. rights from Janssen Pharmaceutica in June 2006 for an upfront payment of $357 million plus milestones.[65] FDA-approved in October 2007 for hypertension treatment, either alone or with other agents, Bystolic demonstrated efficacy in lowering blood pressure through reduced heart rate and enhanced endothelial function, with clinical data from the SENIORS trial supporting its use in elderly patients with heart failure.[65] By fiscal 2013, it contributed over $500 million in annual U.S. revenue, bolstering Forest's diversification beyond neurology.[66]Licensing and Co-Development Agreements
Forest Laboratories pursued licensing and co-development agreements to access innovative compounds and extend its therapeutic portfolio, often involving upfront payments, milestone obligations, and royalty structures shared with partners. These deals targeted areas such as neurology, cardiology, and pain management, enabling Forest to leverage external R&D while minimizing early-stage risks.[67] A foundational partnership was established with H. Lundbeck A/S, under which Forest secured U.S. marketing rights for citalopram (Celexa), approved by the FDA in 1998, and its enantiomer escitalopram (Lexapro), launched in 2002. The collaboration involved joint funding of clinical development and profit-sharing, with Lexapro generating peak annual U.S. sales exceeding $2.9 billion by 2011.[68][42] In January 2006, Forest Laboratories Holdings Ltd., a subsidiary, entered a licensing agreement with Mylan Laboratories Inc. for nebivolol (later branded Bystolic), a cardioselective beta-blocker for hypertension. Forest obtained exclusive development, manufacturing, and commercialization rights in the United States, Canada, Puerto Rico, and certain other territories, providing Mylan an upfront payment of $75 million, potential milestones totaling up to $150 million, and royalties on net sales. Bystolic was FDA-approved in 2007 and became a key revenue driver, with U.S. sales reaching $791 million in fiscal 2013.[69][70] June 2010 marked a licensing deal with TransTech Pharma Inc. for small-molecule glucokinase activators targeting type 2 diabetes. Forest paid $50 million upfront and committed to additional development and regulatory milestones, gaining worldwide rights excluding certain Asian markets; the program advanced to preclinical stages but did not yield approved products prior to Forest's acquisition.[71][72] In December 2010, Forest signed a co-development and licensing agreement with Grünenthal GmbH for cebranopadol (GRT6005), an oral opioid receptor agonist/nociceptin receptor agonist for moderate-to-severe chronic pain. The deal included a $66.1 million upfront payment to Grünenthal, plus potential milestones exceeding $500 million and tiered royalties; Forest held U.S. rights, with shared development costs. Phase II trials showed efficacy in neuropathic pain, but the agreement was terminated in October 2014 following Forest's acquisition by Actavis, returning rights to Grünenthal.[67][73][74] November 2012 brought a licensing agreement with Adamas Pharmaceuticals Inc. for a fixed-dose combination of memantine extended-release (Namenda XR) and amantadine hydrochloride (MDX-8704) to treat levodopa-induced dyskinesia in Parkinson's disease patients. Forest provided $65 million upfront and up to $95 million in milestones for U.S. commercialization rights, funding late-stage development; the combination demonstrated reduced dyskinesia in Phase II/III trials but faced generic competition challenges post-2014.[75][48] In May 2013, Forest formed a collaborative option agreement with Trevena Inc. for TRV027, an intravenous biased ligand of the angiotensin II type 1 receptor for acute decompensated heart failure. Trevena funded a Phase IIb trial involving 500 patients, with Forest holding an option to license global rights upon positive data for up to $460 million in biobucks including upfront, milestones, and royalties; the partnership advanced to Phase II but lapsed without exercise prior to Forest's 2014 acquisition.[76][77] Additional collaborations included a 2007 co-development pact with Ironwood Pharmaceuticals Inc. for linaclotide (Linzess), a guanylate cyclase-C agonist for irritable bowel syndrome with constipation; Forest contributed to U.S. commercialization until opting out in 2012, retaining royalties on sales that exceeded $400 million annually by 2013. These agreements underscored Forest's strategy of partnering for pipeline diversification, though many late-stage efforts were impacted by the 2014 Actavis merger.[78][67]Business Strategies and Growth
Acquisitions and Mergers
Forest Laboratories expanded its portfolio through strategic acquisitions, particularly targeting therapeutic areas such as psychiatry, gastroenterology, and cardiovascular drugs to offset impending patent expirations. In 1989, the company acquired UAD Laboratories in a stock-for-stock transaction valued at approximately $33 million, which bolstered its sales force to 300 representatives and enhanced marketing capabilities for generic products.[12] A significant milestone occurred in 2011 with the acquisition of Clinical Data, Inc., announced on February 21 for $30 per share in cash plus contingent value rights potentially adding up to $1.2 billion in total value, and completed on April 12 following a tender offer by subsidiary Magnolia Acquisition Corp. This deal provided Forest with vilazodone (Viibryd), an antidepressant approved by the FDA in January 2011, aimed at replacing revenue from Lexapro as its patent neared expiration.[79][80] In April 2012, Forest acquired U.S. and Canadian intellectual property rights, including patents, for nebivolol (Bystolic), a beta-blocker for hypertension, from Janssen Pharmaceutica N.V. (a Johnson & Johnson subsidiary) for a one-time cash payment of $357 million, securing extended market exclusivity beyond Janssen's original timeline.[81] Amid aggressive growth in 2014, Forest completed the $2.9 billion all-cash acquisition of Aptalis Pharma from TPG Capital on February 3, following announcement on January 8; Aptalis specialized in gastrointestinal disorders and cystic fibrosis treatments, contributing projected revenues of nearly $700 million and adding 78 cents per share to Forest's 2015 adjusted earnings. Later that year, on April 28, Forest agreed to acquire Furiex Pharmaceuticals for $95 per share in cash ($1.1 billion total) plus up to $30 per share in contingent value rights (potentially $360 million more), with completion on July 2 via Forest subsidiary; this enhanced Forest's gastroenterology focus with eluxadoline (Viberzi) for irritable bowel syndrome.[82][83][84]Revenue Drivers and Market Performance
Forest Laboratories' revenue was predominantly driven by its portfolio of central nervous system (CNS) disorders treatments, including the Alzheimer's medication Namenda (memantine) and antidepressants such as Lexapro (escitalopram oxalate), alongside cardiovascular drugs like Bystolic (nebivolol). The Namenda franchise, encompassing immediate-release and extended-release formulations, emerged as the dominant contributor following the erosion of Lexapro sales after its U.S. patent expiration in March 2012. Other contributors included newer CNS launches like Viibryd (vilazodone) for major depressive disorder and Daliresp (roflumilast) for chronic obstructive pulmonary disease, as well as licensed products such as Linzess (linaclotide) for irritable bowel syndrome with constipation. Acquisitions, notably the $2.9 billion purchase of Aptalis Pharma in January 2014, introduced gastrointestinal therapeutics like Zenpep (pancrelipase), diversifying revenue streams beyond CNS.[67][75][82] In fiscal year 2013 (ended March 31, 2013), net product sales totaled $2.90 billion, a 33.9% decline from $4.39 billion in fiscal 2012, primarily attributable to Lexapro's generic entry, which reduced its sales by 90.9% to $195 million. Namenda sales rose 9.4% to $1.52 billion, comprising 52% of net sales and offsetting losses through increased prescriptions amid Alzheimer's prevalence. Bystolic grew 30.9% to $455 million on expanded hypertension indications, while Viibryd surged 187.6% to $163 million post-2011 launch. Newer entries like Teflaro (ceftaroline) for bacterial infections added $44 million.[67]| Product | FY2013 Net Sales ($ millions) | % Change from FY2012 | Share of Net Sales |
|---|---|---|---|
| Namenda | 1,521 | +9.4% | 52% |
| Bystolic | 455 | +30.9% | 16% |
| Lexapro | 195 | -90.9% | 7% |
| Viibryd | 163 | +187.6% | 6% |
| Savella | 105 | +1.7% | 4% |