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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


Pfizer shareholders approve merger - April 27, 2000

HMOs urge 'pill chopping' - March 22, 2000

Lilly has new Prozac type - March 14, 2000


Forest Laboratories


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