Forest Labs plans to cut $500M in spending

Forest Laboratories says it plans to cut $500 million in costs in about two years, and also plans to buy back up to $1 billion in company stock.

The drugmaker also acquired the U.S. marketing rights to Saphris, a Merck & Co. drug used to treat schizophrenia and bipolar mania.

The moves come less than three months after former Bausch & Lomb leader Brenton Saunders became president and CEO of Forest, replacing longtime CEO Howard Solomon.

The largest portion of the cuts will come from its research and development operations. The company expects to save $110 million from job cuts, but did not say how many positions would be cut.

Shares of Forest Laboratories Inc. rose $2.39, or 4.7 percent, to $53.70 in morning trading.

Related Stories

Hewlett-Packard expands job cuts by 2,000

date Sep 10, 2012

(AP)—Hewlett-Packard plans to cut about 2,000 more jobs than previously announced, as CEO Meg Whitman tries to turn the company around. Last month, HP posted the largest loss in its 73-year history.

Merck to cut 8,500 more jobs (Update)

date Oct 01, 2013

Merck & Co. plans to cut another 8,500 jobs as the drugmaker continues its struggle with competition from cheaper generic medications that have squeezed the pharmaceutical industry for several quarters now.

Recommended for you

Drug and device firms paid $6.5B to care providers

date 14 hours ago

From research dollars to free lunches and junkets, drug and medical device companies paid doctors and leading hospitals nearly $6.5 billion last year, according to government data posted Tuesday.

Running with prosthetic lower-limbs

date Jun 29, 2015

Researchers at Bournemouth University have been looking at the impact of lower-limb prosthetics on competitive running, specifically looking at whether athletes with prosthesis are at an unfair advantage when running against ...

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.