Forest Laboratories and moksha8 Form Broad Strategic Alliance for Latin America

  Forest Laboratories and moksha8 Form Broad Strategic Alliance for Latin
  America

Business Wire

NEW YORK & SAO PAULO -- October 22, 2012

Forest Laboratories, Inc. (NYSE: FRX), an international pharmaceutical
company, and moksha8, a leader in the commercialization of CNS medicines in
Latin America, today announced that they have entered into a broad strategic
alliance that will provide Forest with a commercial footprint in Latin America
and give moksha8 access to Viibryd® and potentially other Forest products for
the Latin American market.

The alliance includes an exclusive license from Forest to moksha8 to
commercialize Viibryd®, and potentially other Forest products, in Latin
America. In addition, Forest will provide up to $125 million in financing to
moksha8 in several tranches over a two-year period, conditioned upon moksha8
achieving certain business goals. At the conclusion of this two-year period,
Forest will have the option to acquire moksha8 in a merger transaction. The
moksha8 shareholders will also have a put option at such time, provided that
moksha8 has achieved certain business objectives. In connection with the
alliance, moksha8 has expanded its license arrangement with Watson
Pharmaceuticals, Inc. (NYSE: WPI), to extend moksha8’s rights to commercialize
a portfolio of Watson CNS branded generic products in Brazil and Mexico and
has bought out Watson’s minority equity position in moksha8. Other financial
terms were not disclosed.

David Solomon, Senior Vice President of Corporate Development and Strategic
Planning of Forest Laboratories Inc., said, “We are pleased to enter into this
transaction with moksha8, which provides Forest access in a risk controlled
manner to a high quality commercial operation in Latin America, one of the
largest and fastest growing pharmaceutical markets in the world. Moksha8 is
uniquely positioned to commercialize novel products such as Viibryd® in Latin
America, and Forest will augment the moksha8 pipeline through our broad global
partner network and business development reach. This alliance will in time
contribute important incremental profits and growth to Forest and is
consistent with Forest’s strategy to improve returns on our product
investments through fiscally responsible international expansion. We are also
pleased with the agreement between moksha8 and Watson, as Watson's high
quality branded generic products are complementary to Viibryd® and the other
novel brands Forest expects to provide to moksha8.”

Simba Gill, Chief Executive of moksha8, said, “Forest has built one of the
strongest proprietary drug pipelines in the industry and we are excited to
partner with Forest to commercialize these products in the fast growth markets
of Latin America. We are also very pleased to build on our successful
partnership with Watson, which has one of the strongest branded generics
portfolios in the industry and with whom we have rapidly become a market
leader in the area of branded generic CNS medicines in Brazil.”

Fred Wilkinson, President Global Brands and Biosimilars of Watson, said, “We
are pleased to be able to expand on our successful partnership with moksha8 in
commercializing branded generic CNS products in Brazil and Mexico. We are also
pleased with the alliance between moksha8 and Forest which will provide
moksha8 with novel brands that are complementary to our branded generic CNS
products.”

Today, the Latin America pharmaceutical market is USD $67 billion with a CAGR
of over 14% over the last 5 years. Brazil and Mexico account for two thirds of
the Latin America market value. The CNS market in Latin America is estimated
to be approximately USD $6 billion.

About Viibryd®

Viibryd® is a novel antidepressant for the treatment of major depressive
disorder (MDD). The efficacy of Viibryd® was established in two 8-week,
multi-center, randomized, double -blind, placebo-controlled studies in adult
(18-80 years of age) outpatients who met the Diagnostic and Statistical Manual
of Mental Disorders (DSM-IV-TR) criteria for MDD. The mechanism of action of
Viibryd is not fully understood but is thought to be related to enhancement of
serotonergic activity in the central nervous system through selective
inhibition of serotonin reuptake. Viibryd® is also a partial agonist of
serotonergic 5-HT1a receptors; however, the net result of this action on
serotonergic transmission and its role in Viibryd® antidepressant effect are
unknown. Viibryd® is not yet approved in Brazil or Mexico and regulatory
submission of Viibryd® in these countries is expected in Forest’s next fiscal
year.

Forest will manufacture and supply Viibryd® to moksha8, under its license from
Merck-Serono, and moksha8 will have exclusive rights to market, sell and
distribute Viibryd® in Latin America.

About Forest Laboratories

Forest Laboratories' (NYSE: FRX) longstanding global partnerships and track
record developing and marketing pharmaceutical products in the United States
have yielded its well-established central nervous system and cardiovascular
franchises and innovations in anti-infective, respiratory, gastrointestinal
and pain management medicine. Forest’s pipeline, the most robust in its
history, includes product candidates in all stages of development across a
wide range of therapeutic areas. The Company is headquartered in New York, NY.
To learn more, visit www.FRX.com.

About moksha8

moksha8 is a significant Latin American pharmaceutical company, with a core
focus on commercializing the highest quality medicines with best in class
operations and strong FCPA compliance. The company launched its commercial
operations in 2008 and currently deploys a field force of 120 representatives
in Brazil and Mexico promoting primarily CNS products. moksha8 has a broad
alliance with Forest Laboratories throughout Latin America and a partnership
with Watson to commercialize certain Watson branded generic products in Brazil
and Mexico. The company was founded by Simba Gill and TPG Biotechnology. Major
investors include TPG Biotechnology and Montreux Equity Partners. For
additional information on moksha8, please visit the company’s web site at
www.moksha8.com.

Deutsche Bank is acting as financial advisor to moksha8.

Forward-Looking Statements

Statements contained in this press release that refer to non-historical facts
are forward-looking statements that reflect Forest’s, Watson's and moksha8’s
current perspective of existing information as of the date of this release. It
is important to note that Forest, Watson and moksha8’s goals and expectations
are not predictions of actual performance. Actual results may differ
materially from Forest, Watson and moksha8’s current expectations depending
upon a number of factors affecting Forest’s, Watson's and moksha8’s business.
These factors include, among others, the impact of competitive products and
pricing; the timing and success of product launches; difficulties or delays in
manufacturing; the availability and pricing of third party sourced products
and materials; successful compliance with FDA and other governmental
regulations applicable to Watson and moksha8, their subsidiaries, and their
third party manufacturers' facilities, products and/or businesses; changes in
the laws and regulations, including Medicare and Medicaid and similar laws in
non-U.S. jurisdictions, including Brazil and Mexico, affecting, among other
things, pricing and reimbursement of pharmaceutical products; and other risks
and uncertainties detailed in Watson's periodic public filings with the
Securities and Exchange Commission, including but not limited to Forest and
Watson's annual reports on Form 10-K for the year ended March 31, 2011 and
December 31, 2011 and Forest and Watson's quarterly reports on Form 10-Q for
the period ended June 30, 2012. Except as expressly required by law, Forest,
Watson and moksha8 disclaim any intent or obligation to update these
forward-looking statements.

Contact:

Forest Laboratories
Media/Investors
Frank J. Murdolo, 212-224-6714
media.relations@frx.com
or
moksha8
Media / Investors:
Jeannine Medeiros, +825-9191-0375
jeannine@moksha8.com
 
Press spacebar to pause and continue. Press esc to stop.