Forest Labs Extends Tender Offer For Clinical Data By A Week

Forest Laboratories Inc. (FRX) extended its tender offer for Clinical Data Inc. (CLDA) by a week, saying it may walk away from the $1.2 billion takeover offer if minimum requirements of the deal aren't met by then.

As of the close of business Friday, about 47.6% of Clinical Data's shares outstanding had been tendered. Terms of the deal require, among other things, that about 78.2% of such securities be tendered.

Forest in February agreed to buy Clinical Data for $30 a share, betting that antidepessant Viibryd can help offset the loss of major products in coming years. It also may pay an additional $6 a share based on the sales performance of Viibryd.

The planned deal is part of Forest's strategy to offset the looming generic competition for its biggest-selling drugs, antidepressant Lexapro and Alzheimer's disease drug Namenda, which provided 85% of product sales in the company's fiscal third quarter ended Dec. 31. Patents for Lexapro expire next year, and Namenda loses similar protection in 2015.

Forest, which also sold antidepressant Celexa--which went generic in 2004--plans to launch Viibryd in the U.S. during the second half of this year.

Clinical Data shares were up 1 cent at $30.34 in recent trading. The shares have surged since Viibryd was approved in January and Forest made its offer in February. Forest shares rose 25 cents to $33.05 recently.

 
   -By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]