Visibility Into FRX’s Late State Pipeline To Improve

Analysts at Cowen & Co maintain their "outperform" rating on Forest Labs (NYSE: FRX).

According to Cowen & Co, Forest Labs, during its Analyst Day meeting on Thursday, is expected to provide an update on its late-stage pipeline. The analysts expect the meeting to be a catalyst for FRX’s stock, given the importance of the company’s late-stage pipeline products. The company is expected to achieve five major milestones during 2010, the analysts add.

The analysts expect Forest Labs’ revenues and earnings to recover significantly after 2012, given the improving visibility into its late-state pipeline products. FRX has seven development candidates that are either filed or in Phase III development. Cowen & Co expects the company to expand its pipeline aggressively during 2010 through single product acquisitions and in-licensing.