NEW YORK (AP) -- Forest Labs said Monday it completed its $2.9 billion purchase of Aptalis, a company that makes treatments for gastrointestinal problems and cystic fibrosis.
Forest said the acquisition of Aptalis will give it about $700 million in revenue in its next fiscal year. The deal expands its cystic fibrosis treatment business in Europe, while giving it entry to that market in the U.S. It also expands its gastrointestinal business in the U.S. and Canada.
The New York drugmaker announced the deal on Jan. 8, and its shares are up about 11 percent since then. Forest Laboratories Inc. stock was down 75 cents to $65.55 in morning trading on Monday.
Forest hired former Bausch & Lomb leader Brenton Saunders as its new CEO in late 2013. Since then, Forest has said it will cut $500 million in annual spending and said it plans to buy back $400 million in stock, although it delayed the repurchase after announcing the Aptalis deal. The company also paid $240 million to gain the U.S. marketing rights to Merck and Co.'s schizophrenia drug Saphris.