Forest Laboratories, Inc. (NYSE:FRX) Moves Up After Merger Gets Approved
Stock of Forest Laboratories, Inc. (NYSE:FRX), which is a S&P 500 index tracked bio tech firm with a market cap of $18.67 billion jumped up by a unprecedented 17.9 percent during trading on January 8. This adds to the close to 15.44 percent increase the stock posted during trading last week.
Merger Approved by Aptalis Shareholders
This jump in the stock of Forest Laboratories, Inc. (NYSE:FRX) yesterday happened on the back of its January 7 announcement that it merger agreement as per which one of its subsidiaries is going to merge with Aptalis Holdings, Inc. has been approved by close to 85 percent of the outstanding investors in the stock of Aptalis.
As part of the merger agreement with Aptalis, company called FRX Churchill Sub, Inc. which is owned by FRX Churchill Holdings, Inc. which in turn is owned by Forest Laboratories, Inc. (NYSE:FRX) will merge together and going forward the new entity will be known as Aptalis Holding. The FRX Churchill Sub, Inc. as a corporate entity will seize to exist. The new entity Aptalis Holding will continue to be a subsidiary of FRX Churchill Holdings, Inc.
As part of this corporate merger and restructuring exercise which is slated to be in the range of $2.9 billion, the restricted stock and options holders of Aptalis will be cancelled and converted into a right to partake the purchase price that has been finalized as part of the merger agreement. The entire deal is being vouchsafed for by Forest Laboratories, Inc. (NYSE:FRX).
Past 12 Months Operations
Forest Laboratories, Inc. (NYSE:FRX) has managed to garner total sales of $3.23 billion in the trailing 12 months and has accumulated net loss of $14.9 million. In spite of the losses, the stock has posted net gains of 88.98 percent in the past one year of trading.