| x  |   | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---------|--------|---------------------------------------------------------------------------------------------------|

| o |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|--------|----------------------------------------------------------------------------------------------------|

| Delaware(State      or other jurisdiction of incorporation or organization)               |   | 11-1798614(I.R.S.      EmployerIdentification      Number) |
|-------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|
|                                                                                      |   |                                                       |
| 909      Third AvenueNew      York, New York(Address      of principal executive offices) |   | 10022-4731(Zip      code)                                  |

| Large      accelerated filer x | Accelerated      filer o | Non-accelerated      filer o                  | Smaller      reporting company o |
|-------------------------------------|-------------------------------|----------------------------------------------------|---------------------------------------|
|                                |                          | (Do      not check if a smaller reporting company) |                                  |

----

TABLE OF CONTENTS

| PART I -      FINANCIAL INFORMATION |
|------------------------------------------|
|                                     |   |   |
|                                     | ITEM 1.      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: |
|                                     |   |   |
|                                     |   | BALANCE SHEETS |
|                                     |   | STATEMENTS OF INCOME |
|                                     |   | STATEMENTS OF COMPREHENSIVE INCOME |
|                                     |   | STATEMENTS OF CASH FLOWS |
|                                     |   | NOTES TO FINANCIAL STATEMENTS |
|                                     |   |   |
|                                     | ITEM 2. MANAGEMENT’S DISCUSSION      AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|                                     |   |   |
|                                     | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES      ABOUT MARKET RISK |
|                                     |   |   |
|                                     | ITEM 4.      CONTROLS AND      PROCEDURES |
|                                     |   |   |
| PART II -      OTHER INFORMATION    |
|                                     |   |   |
|                                     | ITEM 1.      LEGAL PROCEEDINGS |
|                                     |   |   |
|                                     | ITEM 1A. RISK      FACTORS |
|                                     |   |   |
|                                     | ITEM 2.      UNREGISTERED      SALES OF EQUITY      SECURITIES, USE OF PROCEEDS AND ISSUER REPURCHASES OF EQUITY      SECURITIES |
|                                     |   |   |
|                                     | ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY    HOLDERS |
|                                     |   |   |
|                                     | ITEM 6. EXHIBITS |
|                                     |   |
|                                     | EXHIBIT 3.1 |
|                                     | EXHIBIT 31.1 |
|                                     | EXHIBIT      31.2 |
|                                     | EXHIBIT      32.1 |
|                                     | EXHIBIT 32.2 |

----

PART I - FINANCIALINFORMATION

FORESTLABORATORIES, INC. AND SUBSIDIARIES

Table ofContents

|                                                                                                                                            |   |                               |      |   |           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-----------|--------|----------------|--------|
| (In      thousands)                                                                                                                             |   | September      30, 2008(Unaudited) |      |   | March 31, 2008 |   |
|                                                                                                                                            |   |                               |      |   |           |   |
| Assets                                                                                                                                          |   |                               |      |   |           |   |
|                                                                                                                                            |   |                               |      |   |           |   |
| Current      assets:                                                                                                                            |   |                               |      |   |           |   |
| Cash      (including cash equivalent investments of $1,069,005 in September and      $833,018 in March)                                         |   | $                                  | 1,069,842 |   |           | $      | 833,052 |   |
| Marketable      securities                                                                                                                      |   |                               | 820,025   |   |           |   | 943,972 |   |
| Accounts      receivable, less allowance for doubtful accounts of $18,880 in September      and $19,882 in March                                |   |                               | 423,023   |   |           |   | 445,987 |   |
| Inventories,      net                                                                                                                           |   |                               | 450,834   |   |           |   | 425,138 |   |
| Deferred      income taxes                                                                                                                      |   |                               | 219,875   |   |           |   | 226,095 |   |
| Other      current assets                                                                                                                       |   |                               | 75,574    |   |           |   | 33,260 |   |
| Total      current assets                                                                                                                       |   |                               | 3,059,173 |   |           |   | 2,907,504 |   |
|                                                                                                                                            |   |                               |      |   |           |   |   |   |
| Marketable      securities                                                                                                                      |   |                               | 725,275   |   |           |   | 663,625 |   |
|                                                                                                                                            |   |                               |      |   |           |   |   |   |
| Property,      plant and equipment                                                                                                              |   |                               | 584,470   |   |           |   | 567,331 |   |
| Less:      accumulated depreciation                                                                                                             |   |                               | 238,776   |   |           |   | 217,294 |   |
|                                                                                                                                            |   |                               | 345,694   |   |           |   | 350,037 |   |
| Other      assets:                                                                                                                              |   |                               |      |   |           |   |   |   |
| Goodwill                                                                                                                                        |   |                               | 14,965    |   |           |   | 14,965 |   |
| License      agreements, product rights and other intangibles, less accumulated      amortization of $457,614 in September and $421,719 inMarch |   |                               | 491,248   |   |           |   | 527,787 |   |
| Deferred      income taxes                                                                                                                      |   |                               | 60,065    |   |           |   | 59,778 |   |
| Other      assets                                                                                                                               |   |                               | 1,681     |   |           |   | 1,671 |   |
| Total      other assets                                                                                                                         |   |                               | 567,959   |   |           |   | 604,201 |   |
|                                                                                                                                            |   |                               |      |   |           |   |   |   |
| Total      assets                                                                                                                               |   | $                                  | 4,698,101 |   |           | $      | 4,525,367 |   |
|                                                                                                                                            |   |                               |      |   |           |   |   |   |
|                                                                                                                                            |   |                               |      |   |           |   |   |   |
|                                                                                                                                            |   |                               |      |   |           |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                                  |   |                               |      |   |           |   |   |   |

----

Table ofContents

|                                                                                                                          |   |                               |             |   |           |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------------|--------|----------------|--------|
| (In      thousands, except for par values)                                                                                    |   | September      30, 2008(Unaudited) |             |   | March 31, 2008 |   |
|                                                                                                                          |   |                               |             |   |           |   |
| Liabilities and      Stockholders' Equity                                                                                     |   |                               |             |   |           |   |
|                                                                                                                          |   |                               |             |   |           |   |
| Current      liabilities:                                                                                                     |   |                               |             |   |           |   |
| Accounts      payable                                                                                                         |   | $                                  | 72,695           |   |           | $      | 223,720 |   |
| Accrued      expenses                                                                                                         |   |                               | 538,238          |   |           |   | 387,105 |   |
| Total      current liabilities                                                                                                |   |                               | 610,933          |   |           |   | 610,825 |   |
|                                                                                                                          |   |                               |             |   |           |   |   |   |
| Long-term      liabilities:                                                                                                   |   |                               |             |   |           |   |   |   |
| Income      taxes liabilities                                                                                                 |   |                               | 221,514          |   |           |   | 198,410 |   |
| Deferred      income taxes                                                                                                    |   |                               | 809              |   |           |   | 815 |   |
|                                                                                                                          |   |                               | 222,323          |   |           |   | 199,225 |   |
|                                                                                                                          |   |                               |             |   |           |   |   |   |
| Stockholders'      equity:                                                                                                    |   |                               |             |   |           |   |   |   |
| Series      preferred stock, $1.00 par; shares authorized 1,000; no shares issued or      outstanding                         |   |                               |             |   |           |   |   |   |
| Common      stock, $.10 par; shares authorized 1,000,000; issued 421,562 shares in      September and 421,421 shares in March |   |                               | 42,156           |   |           |   | 42,142 |   |
| Additional      paid-in capital                                                                                               |   |                               | 1,458,025        |   |           |   | 1,434,172 |   |
| Retained      earnings                                                                                                        |   |                               | 6,098,499        |   |           |   | 5,611,493 |   |
| Accumulated      other comprehensive income                                                                                   |   |                               | 5,706            |   |           |   | 34,592 |   |
| Treasury      stock, at cost (120,182 shares in September and 110,014 shares in      March)                              |   |                               | ( 3,739,541 | )      |           |   | ( 3,407,082 | ) |
| Total      stockholders' equity                                                                                               |   |                               | 3,864,845        |   |           |   | 3,715,317 |   |
|                                                                                                                          |   |                               |             |   |           |   |   |   |
| Total      liabilities and stockholders' equity                                                                               |   | $                                  | 4,698,101        |   |           | $      | 4,525,367 |   |
|                                                                                                                          |   |                               |             |   |           |   |   |   |
|                                                                                                                          |   |                               |             |   |           |   |   |   |
| See      notes to condensed consolidated financial statements.                                                                |   |                               |             |   |           |   |   |   |

----

FOREST LABORATORIES, INC. ANDSUBSIDIARIES

Table ofContents

|                                                           |   | Three      Months Ended |    |   | Six      Months Ended |   |
|----------------------------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
| (In      thousands, except per share amounts)             |   | September 30,           |    |   | September 30,         |   |
|                                                           |   | 2008                    |    |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |
| Net      sales                                                 |   | $                       | 925,570 |   |                  | $      | 842,337 |   |   | $ | 1,819,315 |   |   | $ | 1,684,953 |   |
| Contract      revenue                                          |   |                    | 47,210  |   |                  |   | 50,313 |   |   |   | 101,363 |   |   |   | 103,690 |   |
| Interest      income                                           |   |                    | 19,194  |   |                  |   | 24,932 |   |   |   | 37,424 |   |   |   | 51,670 |   |
| Other      income                                              |   |                    | 532     |   |                  |   | 1,378 |   |   |   | 1,248 |   |   |   | 6,921 |   |
|                                                           |   |                    | 992,506 |   |                  |   | 918,960 |   |   |   | 1,959,350 |   |   |   | 1,847,234 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Costs      and expenses:                                       |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                             |   |                    | 205,001 |   |                  |   | 189,992 |   |   |   | 402,342 |   |   |   | 376,232 |   |
| Selling,      general and administrative                       |   |                    | 326,261 |   |                  |   | 280,439 |   |   |   | 669,215 |   |   |   | 541,767 |   |
| Research      and development                                  |   |                    | 146,357 |   |                  |   | 170,738 |   |   |   | 258,469 |   |   |   | 307,646 |   |
|                                                           |   |                    | 677,619 |   |                  |   | 641,169 |   |   |   | 1,330,026 |   |   |   | 1,225,645 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income tax expense                          |   |                    | 314,887 |   |                  |   | 277,791 |   |   |   | 629,324 |   |   |   | 621,589 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax expense                                        |   |                    | 70,801  |   |                  |   | 52,547 |   |   |   | 142,318 |   |   |   | 128,183 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                |   | $                       | 244,086 |   |                  | $      | 225,244 |   |   | $ | 487,006 |   |   | $ | 493,406 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per common share:                              |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   | $                       | 0.80    |   |                  | $      | 0.71 |   |   | $ | 1.59 |   |   | $ | 1.55 |   |
| Diluted                                                        |   | $                       | 0.80    |   |                  | $      | 0.71 |   |   | $ | 1.59 |   |   | $ | 1.54 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares outstanding:     |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   |                    | 304,346 |   |                  |   | 315,510 |   |   |   | 305,687 |   |   |   | 317,534 |   |
| Diluted                                                        |   |                    | 305,505 |   |                  |   | 316,852 |   |   |   | 306,701 |   |   |   | 319,375 |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                    |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements. |   |                    |    |   |                  |   |   |   |   |   |   |   |   |

----

FOREST LABORATORIES, INC. ANDSUBSIDIARIES

Table ofContents

|                                                           |   | Three      Months Ended |          |   | Six      Months Ended |   |
|----------------------------------------------------------------|--------|-------------------------|---------------|--------|-----------------------|--------|
| (In      thousands)                                            |   | September 30,           |          |   | September 30,         |   |
|                                                           |   | 2008                    |          |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                                           |   |                    |          |   |                  |   |   |   |   |   |   |   |
| Net      income                                                |   | $                       | 244,086       |   |                  | $      | 225,244 |   |   | $ | 487,006 |   |   | $ | 493,406 |   |
| Other      comprehensive (loss) income                         |   |                    | ( 27,964 | )      |                  |   | 6,498 |   |   |   | ( 28,886 | ) |   |   | 8,477 |   |
|                                                           |   |                    |          |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income                                      |   | $                       | 216,122       |   |                  | $      | 231,742 |   |   | $ | 458,120 |   |   | $ | 501,883 |   |
|                                                           |   |                    |          |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                    |          |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to condensed consolidated financial statements. |   |                    |          |   |                  |   |   |   |   |   |   |   |   |

----

FOREST LABORATORIES, INC. ANDSUBSIDIARIES

Table ofContents

|                                                                                             |   | Six      Months Ended |             |
|--------------------------------------------------------------------------------------------------|--------|-----------------------|------------------|
| (In      thousands)                                                                              |   | September 30,         |             |
|                                                                                             |   | 2008                  |             |   | 2007 |   |
| Cash      flows from operating activities:                                                       |   |                  |             |   |   |   |
| Net      income                                                                                  |   | $                     | 487,006          |   |   | $ | 493,406 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:      |   |                  |             |   |   |   |   |   |
| Depreciation                                                                                     |   |                  | 22,754           |   |   |   | 23,075 |   |
| Amortization      and impairments                                                                |   |                  | 35,895           |   |   |   | 21,588 |   |
| Stock-based      compensation expense                                                            |   |                  | 20,254           |   |   |   | 20,078 |   |
| Deferred      income tax expense (benefit)                                                       |   |                  | 5,927            |   |   |   | ( 5,304 | ) |
| Foreign      currency transaction gain                                                           |   |                  | ( 630       | ) |   |   | ( 137 | ) |
| Net      change in operating assets and liabilities:                                             |   |                  |             |   |   |   |   |   |
| Decrease      (increase) in:                                                                     |   |                  |             |   |   |   |   |   |
| Accounts      receivable, net                                                                    |   |                  | 22,964           |   |   |   | ( 40,287 | ) |
| Inventories,      net                                                                            |   |                  | ( 25,696    | ) |   |   | ( 13,161 | ) |
| Other      current assets                                                                        |   |                  | ( 42,314    | ) |   |   | ( 18,629 | ) |
| Other      assets                                                                                |   |                  | ( 10        | ) |   |   | 8,382 |   |
| Increase      (decrease) in                                                                      |   |                  |             |   |   |   |   |   |
| Accounts      payable                                                                            |   |                  | ( 151,025   | ) |   |   | 26,977 |   |
| Accrued      expenses                                                                            |   |                  | 151,133          |   |   |   | 60,751 |   |
| Income      taxes liabilities                                                                    |   |                  | 23,104           |   |   |   | 24,330 |   |
| Net      cash provided by operating activities                                                   |   |                  | 549,362          |   |   |   | 601,069 |   |
|                                                                                             |   |                  |             |   |   |   |   |   |
| Cash      flows from investing activities:                                                       |   |                  |             |   |   |   |   |   |
| Purchase      of property, plant and equipment                                                   |   |                  | ( 19,240    | ) |   |   | ( 17,791 | ) |
| Purchase      of marketable securities                                                           |   |                  | ( 1,247,144 | ) |   |   | ( 1,244,988 | ) |
| Redemption      of marketable securities                                                         |   |                  | 1,309,441        |   |   |   | 1,295,045 |   |
| Net      cash provided by investing activities                                                   |   |                  | 43,057           |   |   |   | 32,266 |   |
|                                                                                             |   |                  |             |   |   |   |   |   |
| Cash      flows from financing activities:                                                       |   |                  |             |   |   |   |   |   |
| Net      proceeds from common stock options exercised by employees under stock      option plans |   |                  | 3,378            |   |   |   | 24,856 |   |
| Tax      benefit realized from the exercise of stock options by      employees                   |   |                  |  236        |   |   |   |  5,071 |   |
| Purchase      of treasury stock                                                                  |   |                  | ( 332,459   | ) |   |   | ( 274,804 | ) |
| Net      cash used in financing activities                                                       |   |                  | ( 328,845   | ) |   |   | ( 244,877 | ) |
|                                                                                             |   |                  |             |   |   |   |   |   |
| Effect      of exchange rate changes on cash                                                     |   |                  | ( 26,784    | ) |   |   | 7,642 |   |
| Increase      in cash and cash equivalents                                                       |   |                  | 236,790          |   |   |   | 396,100 |   |
| Cash      and cash equivalents, beginning of period                                              |   |                  | 833,052          |   |   |   | 563,663 |   |
| Cash      and cash equivalents, end of period                                                    |   | $                     | 1,069,842        |   |   | $ | 959,763 |   |
|                                                                                             |   |                  |             |   |   |   |   |   |

|                                                           |   |   |    |   |   |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Supplemental      disclosures of cash flow information:        |   |   |    |   |   |   |
|                                                           |   |   |    |   |   |   |
| Cash      paid during the period for:                          |   |   |    |   |   |   |
| Income      taxes                                              |   | $      | 135,342 |   |   | $      | 104,082 |   |
|                                                           |   |   |    |   |   |   |   |   |
|                                                           |   |   |    |   |   |   |   |   |
| See      notes to condensed consolidated financial statements. |   |   |    |   |   |   |   |   |

----

FOREST LABORATORIES, INC. ANDSUBSIDIARIES

Table ofContents

|                |   |                                     |    |   |           |   |
|---------------------|--------|------------------------------------------|---------|--------|----------------|--------|
| (In      thousands) |   | September      30, 2008 (Unaudited) |    |   | March 31, 2008 |   |
|                |   |                                     |    |   |           |   |
| Trade               |   | $                                        | 326,202 |   |           | $      | 377,779 |   |
| Other               |   |                                     | 96,821  |   |           |   | 68,208 |   |
|                |   | $                                        | 423,023 |   |           | $      | 445,987 |   |

|                 |   |                               |    |   |           |   |
|----------------------|--------|------------------------------------|---------|--------|----------------|--------|
| (In      thousands)  |   | September      30, 2008(Unaudited) |    |   | March 31, 2008 |   |
|                 |   |                               |    |   |           |   |
| Raw      materials   |   | $                                  | 178,108 |   |           | $      | 234,288 |   |
| Work      in process |   |                               | 1,711   |   |           |   | 1,360 |   |
| Finished      goods  |   |                               | 271,015 |   |           |   | 189,490 |   |
|                 |   | $                                  | 450,834 |   |           | $      | 425,138 |   |

|   | Level      1: | Observable      inputs such as quoted prices for identical assets or liabilities in active      markets.                                                                                                                                                                                                                                                                                                                              |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Level      2: | Observable      inputs other than quoted prices that are directly or indirectly observable      for the asset or liability, including quoted prices for similar assets or      liabilities in active markets; quoted prices for similar or identical      assets or liabilities in markets that are not active; and model-derived      valuations whose inputs are observable or whose significant value drivers      are observable. |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Level      3: | Unobservable      inputs that reflect the reporting entity’s own  assumptions.                                                                                                                                                                                                                                                                                                                                                  |

| Description                     |   | Fair      Value atSeptember 30,      2008 |    |   | Quoted      Prices in Active Markets for Identical Assets  (Level 1) |   |    | Significant      Other Observable Market Inputs (Level      2)  |   |
|---------------------------------|--------|-------------------------------------------|---------|--------|--------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------|--------|
|                            |   |                                      |    |   |                                                                           |   |    |                                                                      |   |
| Money      market accounts      |   | $                                         | 830,263 |   |                                                                           | $      | 830,263 |                                                                      |   |   |   |
| Municipal      bonds and notes  |   |                                      | 191,965 |   |                                                                           |   |    |                                                                      |   | $ | 191,965 |   |
| Commercial      paper           |   |                                      | 775,765 |   |                                                                           |   | 383,709 |                                                                      |   |   | 392,056 |   |
| Variable      rate demand notes |   |                                      | 214,659 |   |                                                                           |   |    |                                                                      |   |   | 214,659 |   |
| Floating      rate notes        |   |                                      | 437,271 |   |                                                                           |   | 265,387 |                                                                      |   |   | 171,884 |   |
| Auction      rate securities    |   |                                      | 38,795  |   |                                                                           |   |    |                                                                      |   |   | 38,795 |   |

|                                                                                  |   | Three      Months Ended |    |   | Six      Months Ended |   |
|---------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
|                                                                                  |   | September 30,           |    |   | September 30,         |   |
|                                                                                  |   | 2008                    |    |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
| Basic                                                                                 |   |                    | 304,346 |   |                  |   | 315,510 |   |   |   | 305,687 |   |   |   | 317,534 |   |
| Effect      of assumed conversion of employee stock options and restricted      stock |   |                    | 1,159   |   |                  |   | 1,342 |   |   |   | 1,014 |   |   |   | 1,841 |   |
| Diluted                                                                               |   |                    | 305,505 |   |                  |   | 316,852 |   |   |   | 306,701 |   |   |   | 319,375 |   |

|                        |   | Three      Months Ended |    |   | Six      Months Ended |   |
|-----------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
| (In      thousands)         |   | September 30,           |    |   | September 30,         |   |
|                        |   | 2008                    |    |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                        |   |                    |    |   |                  |   |   |   |   |   |   |   |
| Central      nervous system |   | $                       | 833,112 |   |                  | $      | 756,969 |   |   | $ | 1,643,432 |   |   | $ | 1,504,477 |   |
| Cardiovascular              |   |                    | 19,593  |   |                  |   | 6,849 |   |   |   | 29,408 |   |   |   | 15,268 |   |
| Other                       |   |                    | 72,865  |   |                  |   | 78,519 |   |   |   | 146,475 |   |   |   | 165,208 |   |
|                        |   | $                       | 925,570 |   |                  | $      | 842,337 |   |   | $ | 1,819,315 |   |   | $ | 1,684,953 |   |

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FOREST LABORATORIES, INC. AND SUBSIDIARIES

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|   | · | In      May 2008, we filed a supplemental New Drug Application (or sNDA) for      Lexapro for the additional indication of adolescent      depression.  The filing was based on the results from a Phase      III study of Lexapro in the treatment of adolescents aged 12-17, with      Major Depressive Disorder, which indicate that patients treated with      Lexapro experienced statistically significant improvement in symptoms of      depression.  The FDA has set an action date for March 2009 for      this sNDA. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Regarding      nebivolol (Bystolic), we plan to file an sNDA in early calendar 2009 for a      new indication of congestive heart failure based on the results of the      Phase III Seniors study. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      December 2007, we submitted a New Drug Application (or NDA) to the FDA for      milnacipran in the treatment of fibromyalgia syndrome based on data from      two Phase III studies which demonstrated significant therapeutic      effects.  In October 2008, the FDA advised us and our partner      Cypress Bioscience, Inc. (or Cypress) that is was not able to take final      action by the scheduled Prescription Drug User Fee Act action date of      October 18, 2008.  The FDA has not requested any additional      information from Forest or Cypress but did indicate that a clinical data      question related to the NDA submission required      confirmation.  The FDA further indicated that its assessment      could be completed in a matter of weeks, but could not confirm specific      timing.  The FDA could not provide further information regarding      the reason for the delay.  We and Cypress continue to plan for a      product launch meeting in the first quarter of calendar      2009.  We also expect results from a third randomized Phase III      study in late calendar 2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      connection with our acquisition of Cerexa, Inc. in January 2007, we      acquired worldwide development and marketing rights (excluding Japan) to      ceftaroline, a next generation, broad-spectrum, hospital-based injectable      cephalosporin antibiotic with activity against gram-positive bacteria such      as MRSA and gram-negative bacteria.  In June 2008, we reported      positive results from two globally conducted, multi-center Phase III      studies of ceftaroline for complicated skin and skin structure      infections.  We have initiated two Phase III studies for      community acquired pneumonia and we anticipate those results by the second      quarter of calendar 2009.  The data from these two indications,      if supportive, will serve as our planned submission package to the FDA for      initial marketing approval. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      April 2006, we entered into a collaboration agreement with Laboratorios      Almirall, S.A. (or Almirall) for the U.S. rights to aclidinium, a novel      long-acting muscarinic antagonist which is being developed as an inhaled      therapy for the treatment of chronic obstructive pulmonary disease (or      COPD).  In September 2008 we received positive results from two      Phase III studies assessing the safety and efficacy of aclidinium in      moderate to severe COPD.  We expect to meet with the FDA in      early calendar 2009 to review these results.  Pending FDA      feedback, we plan to file an NDA in late calendar 2009 or early calendar      2010.  We and Almirall are also pursuing the development of a      fixed-dose combination of aclidinium and the beta-agonist formoterol,      which is currently in Phase IItesting. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During      the September 2007 quarter, we entered into a 50/50 partnership with      Ironwood to co-develop and co-market the compound      linaclotide.  Linaclotide is currently being investigated for      the treatment of constipation-predominant irritable bowel syndrome (or      IBS-C) and chronic constipation (or CC).  Based on positive      results of a Phase II(b) randomized, double-blind, placebo-controlled      study assessing the safety and efficacy of linaclotide in patients with CC      and IBS-C, we have initiated a comprehensive Phase III clinical      program.  The CC studies have been initiated and the IBS-C      trials are anticipated to begin in January2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      February 2008, we received preliminary results of a Phase III study of      memantine HCl in a novel once-daily formulation of Namenda for the      treatment of moderate to severe Alzheimer’s disease.  The results      indicated that patients treated with this formulation experienced      statistically significant benefits in cognition and clinical global status      compared to placebo.  Based on the results of this study, we intend      to prepare and file an NDA for this new once-daily      formulation. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During      the third quarter of fiscal 2005, Forest entered into a collaboration      agreement with Gedeon Richter Ltd. (or Richter) for the North American      rights to cariprazine (RGH-188) and related compounds, being developed as      an atypical antipsychotic for the treatment of schizophrenia, bipolar      mania and other psychiatric conditions.  A review of top-line      results of a Phase II study in schizophrenia indicated that cariprazine      demonstrated a nominally statistical significant (i.e., not adjusted for      multiple comparisons) therapeutic effect compared to placebo in a low-dose      arm and a numerical improvement compared to placebo in a high-dose arm      that did not reach nominal statistical significance.  Based on      the review of the results, we and Richter initiated a Phase II(b)      dose-ranging study in schizophrenia patients.  This study is      being performed in order to better determine an optimal dose to take into      the planned Phase III program.  In September 2008 we received      positive preliminary top-line results from an additional Phase II study of      cariprazine in patients with acute mania associated with bipolar      disorder. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During      the second quarter of fiscal 2005, Forest entered into a collaboration      agreement with Glenmark Pharmaceuticals Ltd. for the North American      development and marketing of GRC 3886, a PDE4 inhibitor for the treatment      of asthma and COPD.  We have commenced a Phase II study of this      compound for the COPD indication with results expected in the second half      of calendar 2009. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                         |   | September 30, 2008 |           |   | September 30, 2007 |   |
|----------------------------------------------|--------|--------------------|----------------|--------|--------------------|--------|
|                                         |   |               |           |   |               |   |
| Beginning      balance                       |   | $                  | 229,681        |   |               | $      | 208,063 |   |
|                                         |   |               |           |   |               |   |   |   |
| Provision      for rebates                   |   |               | 247,957        |   |               |   | 203,261 |   |
| Changes      in estimates                    |   |               |           |   |               |   |   |   |
| Settlements                                  |   |               | ( 233,276 | )      |               |   | ( 175,888 | ) |
|                                         |   |               | 14,681         |   |               |   | 27,373 |   |
|                                         |   |               |           |   |               |   |   |   |
| Provision      for returns                   |   |               | 13,720         |   |               |   | 16,406 |   |
| Changes      in estimates                    |   |               |           |   |               |   |   |   |
| Settlements                                  |   |               | ( 11,904  | )      |               |   | ( 17,900 | ) |
|                                         |   |               | 1,816          |   |               |   | ( 1,494 | ) |
|                                         |   |               |           |   |               |   |   |   |
| Provision      for chargebacks and discounts |   |               | 151,700        |   |               |   | 168,801 |   |
| Changes      in estimates                    |   |               |           |   |               |   | ( 7,700 | ) |
| Settlements                                  |   |               | ( 153,747 | )      |               |   | ( 172,020 | ) |
|                                         |   |               | ( 2,047   | )      |               |   | ( 10,919 | ) |
|                                         |   |               |           |   |               |   |   |   |
| Ending      balance                          |   | $                  | 244,131        |   |               | $      | 223,023 |   |

Quantitative and QualitativeDisclosures About Market Risk

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Controls andProcedures

----

Part II - OtherInformation

Table ofContents

Item 1.  LegalProceedings

Table ofContents

Item 1A. RiskFactors

Table ofContents

|   | Period               |   | Total number of shares      purchased (1)                                                                     |   | Average      price paid per share                                                     |   | Total      number of shares purchased as part of publicly announced plans or      programs                    |   | Maximum      number of shares that may yet be purchased under the    program |
|--------|----------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|
|   |                 |   |                                                                                                          |   |                                                                                  |   |                                                                                                          |   |                                                                         |
|   | 7/1/08through7/31/08 |   |             -       |   |         -       |   |             -            |   |  9,156,400                                                              |
|   | 8/1/08through8/31/08 |   |             -       |   |         -       |   |             -       |   |  9,156,400                                                         |
|   | 9/1/08through9/30/08 |   |  3,503,100                                                                                          |   |  $28.81                                                                     |   |  3,503,100                                                                                          |   |  5,653,300                                                         |

Table ofContents

|   | Matter                                                                 | For               | Against          | Abstain         | Withholdauthority | Brokernon-votes |
|--------|------------------------------------------------------------------------|-------------------|------------------|-----------------|-------------------|-----------------|
|   | Election      of Directors:                                            |              |             |            |              |            |
|   | Howard      Solomon                                                    | 264,011,723       |             |            | 11,400,904        |            |
|   | Lawrence      S. Olanoff, M.D., Ph.D.                                  | 264,906,938       |             |            | 10,505,689        |            |
|   | Nesli      Basgoz, M.D.                                                | 267,758,788       |             |            | 7,653,839         |            |
|   | William      J. Candee, III                                            | 259,567,444       |             |            | 15,845,183        |            |
|   | George      S. Cohan                                                   | 265,866,448       |             |            | 9,546,179         |            |
|   | Dan      L. Goldwasser                                                 | 266,013,808       |             |            | 9,398,819         |            |
|   | Kenneth      E. Goodman                                                | 259,102,274       |             |            | 16,310,353        |            |
|   | Lester      B. Salans, M.D.                                            | 267,624,601       |             |            | 7,788,026         |            |
|   |                                                                   |              |             |            |              |            |
|   | Adoption      of the Amended and Restated Certificate of Incorporation |  232,812,374 |  40,197,915 |  2,402,338 |              |            |
|   |                                                                   |              |             |            |              |            |
|   | Ratification      of Independent Registered Public Accounting Firm     |  271,642,547 |  1,486,698  |  2,283,381 |              |            |

Table ofContents

| Item      6. | Exhibits     |                                                                                     |
|--------------|--------------|------------------------------------------------------------------------------------------|
|         |         |                                                                                     |
|         | Exhibit 3.1  | Amended      and Restated Certificate of Incorporation of Forest Laboratories,      Inc. |
|         | Exhibit 31.1 | Certification      Pursuant to Section 302 of the Sarbanes-Oxley Act of  2002            |
|         | Exhibit 31.2 | Certification      Pursuant to Section 302 of the Sarbanes-Oxley Act of  2002            |
|         | Exhibit 32.1 | Certification      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002            |
|         | Exhibit 32.2 | Certification      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002            |

SIGNATURES