added 4.52% to his stake in Forest Laboratories Inc. (
) at the average price of $34.68 on Aug. 24, 2012, according to
GuruFocus Real Time Picks
. He owns 30,133,346 shares. The stock price has changed by 2%.
Forest Laboratories Inc. and its subsidiaries develop,
manufacture and sell both branded and generic forms of ethical
drug products which require a physician's prescription, as well
as non-prescription pharmaceutical products sold
over-the-counter. Forest Laboratories Inc. has a market cap of
$9.22 billion; its shares were traded at around $34.83 with a P/E
ratio of 11.8 and P/S ratio of 2. Forest Laboratories Inc. had an
annual average earnings growth of 9.7% over the past 10 years.
GuruFocus rated Forest Laboratories Inc.
the business predictability rank of 4-star
Icahn first invested in Forest Laboratories in the third quarter
of 2009 when the price was an average of $27. The price has
increased 15% year to date.
The activist investor has been engaged in a battle with the
company, writing several public letters addressing what he sees
as its problems. Icahn won one out of four seats he attempted to
win on Forest Laboratories' board on August 15. He won no seats
at last year's vote.
Icahn said in a statement: "I am very pleased with the tremendous
support that my nominee, Pierre Legault, obtained from
shareholders in winning a seat on the Forest Board. Sadly, our
proxy system is set up in such a way that the deck is stacked
heavily in favor of incumbent management in proxy contests. THIS
IS TRUE PARTICULARLY AT FOREST, where a few shareholders with
upwards of 25% of the outstanding shares seem to vote in favor of
management no matter how bad the company is performing and how
bad its corporate governance is. That is why today's victory is
not only surprising, but I hope and believe that the shareholder
message sent will be the first step in bringing good corporate
governance to this great company - something that has been
lacking for decades."
Forest commented: "We are gratified by the strong support of our
shareholders in re-electing nine of our ten directors. The
election of only one of Mr. Icahn's four nominees reflects our
shareholders' continued confidence in Forest's strategy,
corporate governance practices and the strength of our pipeline
and portfolio of products. We would also like to welcome our new
director, Pierre Legault, who will join the Forest Board after
the vote has been certified. We look forward to working with him
in a constructive manner to build value for all Forest
shareholders over the long term."
Forest lowered its earnings guidance for fiscal 2013 due to the
loss of its patent on popular antidepressant Lexapro. The company
currently has nine other products that have recently reached or
it expects to reach the marketplace, with several more in
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