Forest Laboratories, Inc.
) recently announced the appointment of a new Chief Executive
Officer (CEO) and President. Brenton L. Saunders, 43, the former
CEO of Bausch + Lomb, will take over from Howard Solomon on Oct
Saunders has been a director at Forest Labs since Aug 2011. At
present, he is the Chairman of the Board's Compensation Committee
and a member of its Compliance Committee - Saunders will step
down from both positions once he becomes CEO and President.
Meanwhile, Solomon will continue serving as non-executive
Chairman of the Board through the Company's 2014 Annual Meeting
of Stockholders. Saunders will take up the position of Chairman
at that time.
Apart from serving as the CEO of Bausch + Lomb prior to its
), Saunders held senior leadership positions at Schering-Plough
Corporation, which is now a part of
). During his tenure at Bausch + Lomb (2010 to Aug 2013),
Saunders turned around the company and positioned it as a global
competitor in more than 100 markets. The appointment of Saunders
as the new CEO of Forest Labs met with the approval of Carl
The biggest challenge that the new CEO will face is the patent
cliff being faced by Forest Labs. While Lexapro started facing
generics in Mar 2012, generic versions of Namenda should hit the
market in early 2015. Although Forest Labs has been successful in
gaining approval for several new products over the past few
years, contributions from these products will not be enough to
make up for the loss of revenues to generic competition. SG&A
spend is also a matter of concern.
Investor focus will remain on how Saunders, who turned around
Bausch + Lomb, will handle these issues. Forest Labs currently
carries a Zacks Rank #2 (Buy) stock. At present,
) looks well-positioned with a Zacks Rank #1 (Strong Buy)
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