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News > Companies
Forest Labs cuts W-L tie
May 12, 2000: 12:54 p.m. ET

Pact to market antidepressant Celexa conflicts with planned Pfizer merger
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NEW YORK (CNNfn) - Drug maker Forest Laboratories Inc. on Friday broke off a marketing pact with Warner-Lambert Co. over sales of the antidepressant Celexa, citing its partner's imminent merger with Pfizer Inc.

Pfizer (PFE: Research, Estimates) makes the rival antidepressant Zoloft. The company's merger with Morris Plains, N.J.-based Warner-Lambert, a deal that would create the world's biggest drug maker after the planned combination of Britain's Glaxo Wellcome PLC and SmithKline Beecham, is expected to close by early next month.

New York-based Forest said it would pay Warner-Lambert $14 million to break off the co-marketing arrangement, and that Warner-Lambert would cease sharing in profits from the drug's sales as of April 30, 2000.

graphicSales of Celexa totaled $427.3 million in the fiscal year ended March 31, from $91.9 million in the prior year. Celexa and other products are rapidly taking market share from well-known antidepressant Prozac, which is made by Eli Lilly and Co. (LLY: Research, Estimates).

Forest said that it has been expanding its sales force in preparation for an end to its pact with Warner-Lambert, which has a much bigger sales and marketing staff.

Shares of Forest (FRX: Research, Estimates) rose 4/13/16 to 93-1/4 at midday.

Warner-Lambert (WLA: Research, Estimates) stock slipped 7/16 to 116. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.