SECURITIES AND EXCHANGE COMMISSION
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WASHINGTON, D.C. 20549
FORM 8-K/A 2
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CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 1, 1995
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FOREST LABORATORIES, INC.
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(Exact name of registrant as specified in its character)
Delaware 1-5438 11-1798614
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
909 THIRD AVENUE, NEW YORK, NEW YORK 10022
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 212-421-7850
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(Former name or former address, if changed since last report.)
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ITEM 7. FINANCIAL STATEMENTS, PRO-FORMA FINANCIAL INFORMATION
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AND EXHIBITS
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(a) Financial Statements. The following financial statements of
Biovail Corporation International ("BCI") are filed as part of this Current
Report on Form 8-K:
(1) The consolidated financial statements of BCI for
the fiscal year ended December 31, 1994.
Incorporated herein by reference to Item 19(a) of
the Annual Report on Form 20-F of BCI for the
fiscal year ended December 31, 1994.
(2) The consolidated financial statements of BCI for
the six months ended June 30, 1995. Incorporated
herein by reference to Part I of the Report on
Form 6-K of BCI for the quarterly period ended
June 30, 1995.
(b) Pro-Forma financial information. The Pro Forma Condensed
Consolidated Balance Sheet of Forest Laboratories, Inc. and Subsidiaries as
at September 30, 1995.
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FOREST LABORATORIES, INC. AND SUBSIDIARIES
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UNAUDITED PRO FORMA
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CONDENSED CONSOLIDATED BALANCE SHEET
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The following unaudited pro forma condensed consolidated balance sheet
as of September 30, 1995, reflects the pro forma condensed consolidated
balance sheet of Forest Laboratories, Inc. and Subsidiaries ("Forest"),
giving effect to the pro forma adjustment described herein as though the
acquisitions had occurred on September 30, 1995. Unaudited pro forma
condensed consolidated statements of income for the year ended March 31,
1995 and the six months ended September 30, 1995 have not been presented,
as the pro forma adjustments would have an immaterial effect on these
statements. The unaudited pro forma condensed consolidated balance sheet
gives effect to Forest's acquisition of 1,800,000 common shares, without
par value, of Biovail Corporation International ("BCI") and the acquisition
of an exclusive license to market Biovail Laboratories, Inc.'s, a wholly-
owned subsidiary of BCI, once-daily formulation of diltiazem in the United
States. The aggregate consideration paid for the acquisition was
approximately $95.6 million.
For a more detailed description of the terms of the acquisitions see
the Form 8-K filed by Forest on November 1, 1995.
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FOREST LABORATORIES, INC. AND SUBSIDIARIES
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PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
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SEPTEMBER 1995
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Pro Forma
Historical Adjustments Pro Forma
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<S> <C> <C> <C>
(In thousands)
Assets
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Current Assets
Cash $103,989 (95,600) <F1> $ 8,389
Marketable securities 20,354 20,354
Accounts receivable, net 162,333 162,333
Inventories 45,396 45,396
Deferred income taxes 12,499 12,499
Other current assets 14,692 14,692
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Total current assets 359,263 263,663
Long-term marketable securities 148,404 148,404
Property, plant and equipment,
net 76,731 76,731
Goodwill 18,407 18,407
License agreements, product rights
and other intangibles, net 201,703 20,000 <F1> 221,703
Investment in BCI 75,600 <F1> 75,600
Other 18,874 18,874
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Total Assets $823,382 $823,382
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<TABLE>
FOREST LABORATORIES, INC. AND SUBSIDIARIES
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PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
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SEPTEMBER 1995 (CONT'D)
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Pro Forma
Historical Adjustments Pro Forma
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<S> <C> <C> <C>
(In thousands)
Liabilities and Shareholders'
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Equity
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Current liabilities
Accounts payable $ 13,357 $ 13,357
Accrued expenses 31,822 31,822
Income taxes payable 20,728 20,728
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Total current liabilities 65,907 65,907
Deferred income taxes 294 294
Shareholders' equity:
Series A junior participating
preferred stock, $1.00 par;
1,000 shares authorized; no
shares issued or outstanding
Common stock $.10 par; shares
authorized 250,000; issued
47,935 shares 4,794 4,794
Capital in excess of par 299,619 299,619
Retained earnings 493,504 493,504
Cumulative foreign currency
translation adjustments ( 75) ( 75)
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797,842 797,842
Less common stock in treasury,
at cost (2,644 shares) 40,661 40,661
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Total shareholders' equity 757,181 757,181
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Total Liabilities and
Shareholders' Equity $823,382 $823,382
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<F1> Reflects the acquisition of an exclusive product license for $20
million and the acquisition of approximately 22% of the total common
shares outstanding of Biovail Corporation International (BCI) for
$75.6 million. This investment will be accounted for under the equity
method of accounting. The amount of the investment exceeds the
Company's share of BCI's underlying book value by approximately $68.7
million and that amount will be accounted for as goodwill. The
goodwill and the above mentioned product license will be amortized,
using the straight-line method, over 25 years (management's estimate
of the remaining useful lives of the respective assets.) The
amortization method and period is consistent with prior acquisitions
by the Company.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
FOREST LABORATORIES, INC.
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Date: April 22, 1996 By: /S/ KENNETH E. GOODMAN
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Kenneth E. Goodman,
Vice President-Finance
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