Merrill keeps Forest Labs at buy

Forest Labs was maintained by Merrill Lynch analyst Gregg Gilbert at a buy on news that the Lexapro trial has been reduced to one week from two weeks. Forest shares have been weak recently, perhaps due to the Lexapro trial versus Teva. Merrill believes a settlement could be a win/win for both companies. The analyst estimates that Lexapro will generate sales of $13.7 billion over the life of the patent. This number could be reduced to $3 billion or less if Teva wins in court and launches its own generic in a year. Shares of the New York City drug development services company were up 62 cents, or 1.38%, at $45.50 on volume of 838,000 shares versus the three-month running average of 2,260,410 shares. (NYSE: FRX)

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