Company Description: Forest Laboratories, Inc. develops, manufactures, and sells branded and generic forms of ethical drug products. Its principal products include Lexapro to treat depression; Namenda to treat Alzheimer's disease; Bystolic, beta-blocker to treat hypertension; and Savella for the treatment of fibromyalgia. The company also provides Sudocrem, a topical preparation to treat diaper rash; Colomycin, an antibiotic to treat cystic fibrosis; Infacol, which is used to treat infant colic; and Exorex, which is to treat eczema and psoriasis. In addition, its products include Dutogliptin, a small molecule dipeptidyl-peptidase-4 inhibitor, which is in Phase III studies to treat Type II diabetes mellitus; F2695 that completed Phase II study and is a selective norepinephrine and serotonin reuptake inhibitor for the treatment of depression and other central nervous system disorders; and ceftaroline acetate, a injectable cephalosporin antibiotic that exhibits bactericidal activity against the strains of gram-positive bacteria. Further, the company’s products comprise NXL104, an intravenous beta-lactamase inhibitor; Linaclotide for the treatment of constipation-predominant irritable bowel syndrome and chronic constipation; Aclidinium, an inhaling therapy, which is in Phase III studies for chronic obstructive pulmonary disease; and Cariprazine, an atypical antipsychotic in Phase II(b) studies for the treatment of schizophrenia, bipolar mania, and other psychiatric conditions. Additionally, its products include Oglemilast, a phosphodiesterase-IV inhibitor in Phase II study to treat COPD and asthma; and Benicar, an angiotensin receptor blocker to treat hypertension. The company has collaboration and license agreements Phenomix Corporation, Pierre Fabre Medicament, Novexel, S.A., Laboratorios Almirall, S.A., Gedeon Richter Ltd., Glenmark Pharmaceuticals Ltd., and AstraZeneca plc. Forest Laboratories, Inc. was founded in 1956 and is based in New York, New York..

Our Analysis: The shares of Forest Laboratories, Inc. 'FRX' gapped lower on the open of trading yesterday. They finished the day by closing below a pair of recently established downside support levels on dramatically heavier than normal trading volume. This is a very bearish trading signal. The shares of 'FRX' should continue to move lower and test $29.54/share, a point of downside support established on March 4th of this year. If the shares of 'FRX' close below that level, then I expect them to continue to move lower and test $28.78/share, a point of downside support established on February 8th of this year. I see upside resistance on the shares of 'FRX' @ $31.06/share, and have set my stops accordingly @ $31.47/share.