Forest Laboratories Names Director Brent Saunders As President, CEO

(RTTNews) - Drug maker Forest Laboratories, Inc. (FRX) named board member Brenton Saunders as the new president and chief executive officer, effective October 1. Saunders will succeed Howard Solomon, who announced his retirement in May after serving the company for nearly 50 years, with 35 years at the helm. Saunders has been a director of the company since August 2011 and is the former CEO of Bausch + Lomb, Inc.

"We have long thought Brent would be an ideal CEO to succeed Howard when the time came. Over the course of our announced search and rigorous board process, during which we seriously evaluated a number of excellent candidates, this belief became crystal clear," Presiding Independent Director Kenneth Goodman said in a statement.

Meanwhile, New York-based company noted that Solomon will continue as non-executive chairman of the board through the company's 2014 Annual Meeting of Stockholders, when Saunders is expected to be elected chairman also.

Solomon will then retain the title of Chairman Emeritus and has agreed to serve as senior adviser to the company after his retirement, effective December 31. He has served as CEO since 1977, Chairman since 1998 and President since 2010.

Saunders called Solomon "an industry icon and who has created enormous value for patients and shareholders over many years." He added that he has deep admiration for Solomon and looks forward to his continued counsel in the future.

Saunders, who is currently Chairman of the board's compensation committee and a member of its compliance committee, will step down from those roles after taking over as president and CEO.

Forest Labs noted that Saunders brings in significant healthcare experience and has had an outstanding track record of delivering growth.

Saunders, age 43, has served as CEO of Bausch + Lomb from March 2010 to August, 2013 after holding several senior executive positions with Schering-Plough from 2003 to 2010, most recently as president of Global Consumer Health Care.

Prior to that, Saunders was a partner and head of the compliance business advisory group at PricewaterhouseCoopers LLP from 2000 to 2003.

Earlier, Saunders served as chief risk officer at Coventry Health Care, Inc. (CVH) from 1998 to 1999. He began his career as chief compliance officer for the Thomas Jefferson University Health System.

"We are delighted that, following the recent sale of Bausch + Lomb, Brent became available at just the right time. He is strategic, innovative, experienced and the right leader for Forest today. We are confident he will drive growth and even greater success for the Company, its shareholders and our employees," Goodman added.

Solomon said, "He is ready to be Forest's CEO now and I believe it is in the best interests of the Company to begin the transition immediately. I believe it is time to turn over the reins and I look forward to continuing as non-executive chairman and to helping ensure the most seamless transition possible."

FRX closed Monday's regular trading session at $43.42, up $0.24 on a volume of 0.37 million shares.