Item 1.01 Entry into a Material Definitive Agreement

On July 10, 2009, Forest Laboratories, Inc. and its wholly-owned subsidiary, Forest Laboratories Holdings Limited (collectively, "Forest"), entered into a Settlement Agreement with H. Lundbeck A/S ("Lundbeck"), Forest's licensor of the patent at issue, Sun Pharmaceutical Industries Limited and its affiliates ("Sun Pharma") and Caraco Pharmaceutical Laboratories, Ltd. ("Caraco"), regarding pending patent infringement disputes regarding U.S. Patent Re. No. 34,712, U.S. Patent No. 6,916,941, and U.S. Patent No. 7,420,069, which were licensed by Forest from Lundbeck on an exclusive basis in the United States. These patents are listed in the U.S. Food and Drug Administration's Orange Book for Forest's LEXAPROŽ brand escitalopram oxalate tablet products.

As consideration for the settlement,

1. Forest and Lundbeck will provide licenses to Caraco for any patents related to LEXAPROŽ with respect to the marketing of Caraco's generic version of the product as of the date that any third party generic that has properly received final approval from the FDA enters the market, other than an authorized generic or the first filer with Hatch-Waxman related exclusivity.

2. Caraco will take over the commercialization and sale of several products from Forest's Inwood business and Caraco will pay Forest an advance against royalties and royalties on net sales of these products.

3. In exchange for an upfront payment (and royalties but only if the technology is used), Sun Pharma will license to Lundbeck on a worldwide basis certain patent applications related to the synthesis of escitalopram and citalopram.

In addition, Forest and Lundbeck will reimburse certain of Caraco's legal costs in connection with these patent litigations.

The settlement terms are subject to review by the U.S. Federal Trade Commission.

The foregoing description of the settlement does not purport to be complete and is qualified in its entirety by reference to the text of the Settlement Agreement, a copy of which Forest intends to file with its Quarterly Report on Form 10-Q for the quarter ending September 30, 2009, requesting confidential treatment for certain portions.