Forest Meets FDA Hedgehogs (FRX)

Posted in pre-market 
April 8th, 2010

Forest Laboratories Inc. (NYSE: FRX) is trading down after an FDA panel rejected its Nycomed lung disease drug, which coincides with earlier comments from Monday that its benefits were marginal.  We have seen at least two analyst downgrades, one from Lazard and one from Piper Jaffray.  Forest was down about 9.4% last night.  It is a listed stock so volume will not pick up rapidly until the opening bell is closer.  The stock closed at $32.46 and is indicated to trade down around $29.50 this morning. UPDATE at 9:22 AM EST shares are down 10.5% at $29.05 on 1.08 million shares (avg. volume for a whole day is about 3.4 million shares).

Be advised that shares had been around $30 before seeing a late-day rise on Wednesday.


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