The company, which already sells a twice-daily formulation of the drug, evaluated the efficacy and safety of an extended release version in patients with moderate to severe Alzheimer's disease currently treated with a drug in the class known as cholinesterase inhibitors.

"This is an important step in Forest's efforts to soften or delay the eventual blow of Namenda genericization," said Corey Davis, an analyst at Natixis Bleichroeder, "and while it's no 'game changer,' it is certainly a positive and should reinforce the upward momentum Forest's stock is building."

Forest's shares were up 77 cents, or 1.9 percent, to $41.69 in early trading. They have risen 19 percent since hitting a year low last November but are still down 28 percent from this time a year ago.

The company, which also makes the antidepressant Lexapro, said that based on the results, which showed marked improvement in certain tests of mental function, it will pursue a marketing application for the drug. (Reporting by Toni Clarke, editing by Mark Porter/Gerald E. McCormick)

Source: Reuters

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