It is my understanding that there are only labeling issues being thrashed about, although I haven't seen the approvable letter personally. It is not yet available on the FDA-CDER website (http://fda.gov/cder). The impression I have is that the approval will come this summer. When it does, Celexa has the potential to knock Prozac down for the count. It does not have the sexual dysfunction side effects that Prozac does. Forest has an excellent sales force, and they will be co-marketing with Warner-Lambert. The stock price is still relatively low, around $33. It might be a good time to add some shares to your portfolio.
It is my impression that the Forest Labs anti-depressant medication is on track and set for final approval. I personally do not read too much into the approvable vs final approval possible percevied issue in this case. This anti-depressant has been on the market in other parts of the world for some time and in fact, I beleive, in certain European markets is the number one drug in its class. It has in fact according to all reports that I am aware of been associated with perhaps even less side effects and drug interactions than other similar medications and may be better tolerated in the elderly. Of, course, there is always that small (but ever present) risk that something will go amiss in the approval process atr this final juncture. Then again, it wouldn't really be investing would it if everything was a sure thing?
It would appear that this could be a very significant product for Forest labs if all goes as anticipated. The market is hugh and lead products in this feild can eventually be $1 billion plus (in sales) drugs. This would, if successfully approved, launched and accepted by the medical communuty (as it has been in Europe) be Forest's first real blockbuster. Coupled with continued sales trends of its present major product base this could translate into very significant increases in earnings beginning perhaps 6-18 months post-launch with stock price appreciation following earnings.
Forest seems to me to be a nice intelligent speculation for significant 3-5 year appreciation (sooner if approval is forthcoming and launch and promotion is accelerated and successful). Of, course, there are no guarentees but this does look like a very sound reasonable bet to me at least.
Please let me know what you all think or any other ideas.