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Actavis plc. (ACT)

  • Mar. 19, 2014, 4:32 PM
    • Actavis (ACT) and Noven Pharmaceuticals agree to settle all outstanding patent litigation related to the former's generic version of Daytrana (Methylphenidate Transdermal System), a CNS stimulant used to treat ADHD.
    • Noven grants Actavis a non-exclusive royalty-bearing license to market its generic Daytrana beginning September 1, 2015 contingent on ACT receiving FDA approval for the drug.
    • 2013 Daytrana sales in the U.S. were $98M.
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  • Mar. 13, 2014, 7:27 AM
    • Actavis (ACT) confirms that it will launch its generic Celebrex product in May after yesterday's favorable court ruling invalidating Pfizer's (PFE) patent.
    • The FDA must approval its Abbreviated New Drug Application before commercialization commences.
    • Celebrex generated $2.2B in US sales last year.
  • Mar. 7, 2014, 9:30 AM
  • Feb. 20, 2014, 8:44 AM
    • Actavis (ACT +0.7%) swings to a loss of $148.4M from a profit of $28M a year earlier, with earnings hurt by restructuring-related expenses and other items.
    • EBITDA jumps to $817.1M from $393M, boosted by the acquisition of Warner Chilcott.
    • Pharma Segment revenue $1.7B vs $1.4B; Specialty Brands $695.5M vs $132.2M; Anda Distribution $383M vs $203.9M.
    • Actavis intends to provide updated 2014 guidance after it closes the $25B acquisition of Forest Labs.
    • The company affirms its forecasts for Actavis alone: it expects EPS of $12.60-13.10 vs consensus of $12.99, and revenues of over $10B vs $10.86B. (PR)
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  • Feb. 20, 2014, 7:02 AM
    • Actavis plc. (ACT): Q4 EPS of $3.17 beats by $0.12.
    • Revenue of $2.78B (+58.9% Y/Y) beats by $100M.
    • Press Release
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  • Feb. 20, 2014, 12:05 AM
  • Feb. 19, 2014, 5:30 PM
  • Feb. 19, 2014, 8:42 AM
    • Following a bit of skepticism from BMO yesterday about its $25B acquisition of Forest Labs (FRX), Actavis (ACT) gets some sell-side love as several firms give the latter a price target of $250, well above its close of $201.47.
    • Goldman Sachs upgrades Actavis to Buy, saying the company is rapidly transforming into one of the fastest-growing names in their coverage.
    • And while Buckingham and Barcap set price targets of $250, their upside cases are $274 and $275 respectively.
    • Actavis shares are +2% to $205.52 premarket.
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  • Feb. 18, 2014, 2:49 PM
    • Actavis’ (ACT +7.3%) deal to acquire drug maker Forest Labs (FRX +29.4%) means significant fees for JPMorgan Chase (JPM +0.6%), the bank’s second apparent windfall in less than a week from advising on a big-ticket deal.
    • JPM stands to earn $55M-$65M in fees as Forest’s adviser in the deal, NYT reports; the bank also stands to earn as much as $68M for its work on Comcast’s acquisition of Time Warner Cable.
    • Greenhill (GHL +7.2%) is raking in the cash as ACT's longtime adviser, earning $50M-$59M on the Forest deal and is ACT's seventh acquisition in the past year; absent from today’s deal was Morgan Stanley (MS -0.4%), which advised on FRX’s deal to buy drugmaker Aptalis for $2.9B in January.
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  • Feb. 18, 2014, 9:13 AM
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  • Feb. 18, 2014, 8:18 AM
    • A couple of sell-side analysts express some surprise about Actavis' (ACT) $25B acquisition of Forest Labs (FRX).
    • BMO: "We acknowledge the deal frenzy and EPS accretion deal environment, but are not convinced that such a deal makes strategic sense."
    • Citi: "The potential combination of the two companies is somewhat surprising in our view, given their relatively limited overlap." Cit's note goes on, though: "However we acknowledge that their combination would better facilitate negotiation amongst a customer base that is also experiencing consolidation.”
    • Notwithstanding, Actavis' shares are +11.3%, although down from earlier highs, while Forest is +33%.
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  • Feb. 18, 2014, 7:34 AM
    • Actavis (ACT) will pay $89.48 per share, comprised of $26.04 in cash and 0.3306 of an Actavis share. The price represents a premium of 25% over Forest Labs' (FRX) close on Friday of $71.39.
    • The merger would create a company with combined forecast revenues of $15B in 2015 and free cash flow of over $4B.
    • The firms project potential operating and tax synergies of $1B, not including manufacturing or revenue synergies.
    • Actavis CEO Paul Bisaro will lead the new firm, while Forest CEO Brent will join Actavis' board. In total, three Forest directors will gain seats on Activis' board.
    • "The combined company will create blockbuster product franchises in the CNS, Gastroenterology, Women's Health, Urology and Cardiovascular therapeutic categories," Activis says.
    • Forest's shares surge 32%, while Activis soars 15.7%. (PR)
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  • Feb. 18, 2014, 7:15 AM
    • Actavis (ACT) confirms a WSJ report that it has agreed to acquire Forest Laboratories (FRX) for $25B in cash and stock. (PR)
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  • Feb. 18, 2014, 2:00 AM
    • Actavis (ACT) is in advanced negotiations to buy fellow pharmaceuticals provider Forest Laboratories (FRX) for up to $25B, the WSJ reports, adding that the deal could be announced today.
    • The figure is above Forest's market cap of $19.3B at the close of trade on Friday and compares with Actavis' $33.4B.
    • The acquisition would add to Actavis' recent purchase of Warner Chilcott and follow Forest's agreement in January to buy specialty-pharmaceutical company Aptalis Holdings.
    • One reason for the tie-up is to allow the companies to better negotiate with customers amid consolidation between U.S. Hospitals, insurers and doctors.
    • Carl Icahn could be set to benefit from the deal after he built up an 11.4% stake in Forest and successfully agitated for change in a bruising battle with the company's then management.
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  • Jan. 31, 2014, 10:31 AM
    • Actavis (ACT -0.3%) issues 2014 targets that mostly meet analyst expectations as it also unveils a plan to realign its global structure.
    • The move to realign its business comes after ACT recently completed its takeover of Warner Chilcott in a deal ACT expects to help it further diversify into brand-name drugs to offset pressure on its core generic business.
    • ACT projects 2014 EPS of $12.60-$13.10 vs. $12.89 analyst consensus estimate and revenue of more than $10B vs. $10.49B consensus.
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  • Jan. 19, 2014, 2:57 AM
    • Actavis (ACT) has agreed to sell its generic-drug operations in seven western-European countries to India's Aurobindo Pharma for around €30M ($41M).
    • The countries are France, Italy, Spain, Portugal, Belgium, Germany and Holland.
    • "This transaction will permit Actavis to focus management time and resources to support accelerated investment in driving faster growth of other markets, including Central and Eastern Europe and Southeast Asia," Actavis said.
    • News of the deal comes after Actavis said it intends to end its presence in China due to the difficult business climate. (PR)
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ACT vs. ETF Alternatives
Company Description
Actavis PLC specialty pharmaceutical company engaged in developing, manufacturing and distributing generic, brand and biosimilar products.
Sector: Healthcare
Industry: Drugs - Generic
Country: United States