How Actavis Compares to Its Peers
Actavis’s forward EV/EBIDTA multiple is 13.7x, slightly higher than the industry average. Actavis doesn’t pay a dividend and reinvests its profits.
Actavis operates in a dynamic environment involving risks associated with the general market, plus those faced by the generic pharmaceutical industry.
Actavis currently has four biosimilar oncology products in development, as well as biosimilar versions of Herception, Avastin, Rituxan, and Erbitux.
Moody’s and Fitch maintained their investment grade ratings for Actavis, with respective ratings of Baa3 and BBB-.
Actavis’s gross margins improved from 44% in 2011 to 52% in 2014, due to improved gross margins for the North American Generics and International segments.
In 2014, revenues of the North American brands segment saw a significant increase, to $4,631.4 million from $1,062.5 million in 2013, a 336% increase YoY.
Actavis is significantly increasing its R&D expenses for branded drugs, indicating its increasing focus on branded drugs to improve its profitability.
Actavis plans to acquire Auden Mckenzie, focusing on the development, licensing, and marketing of niche generic medicines and proprietary brands in the UK.
Actavis is exploring opportunities in the international generics market. In 2014, generics constituted ~30% of total international generics revenues.
In January 2015, Actavis launched a generic specialty injectable portfolio, containing ~20 products across its therapeutic segments in the US.
As of fiscal 2014, Actavis marketed approximately 550 generic products globally, including around 250 generic products in the US portfolio.
Actavis intends to invest ~$1.7 billion in R&D annually. It expects to add ~15 projects in near- and mid-term development to the company’s product pipeline.
In its pursuit of acquisitions of complementary products and companies, Actavis acquired Furiex Pharmaceuticals in 2014 for its Gastroenterology segment.
The top 10 products across Actavis’s therapeutic segments accounted for approximately 70% of net revenues of segmental revenues in fiscal 2014.
Actavis’s North American Brands segment revenue increased significantly by 336% year-over-year to $4,631.4 million in 2014 from $1,062.5 million in 2013.
Anda, Inc. is the fourth-largest generics distributor in the US, accounting for about 13% of total net revenues in fiscal 2014 and 14% in fiscal 2013.
In October 2012, Actavis completed the acquisition of Actavis Group. In 2013, the company’s revenues outside the US increased to 29% from 16% in 2012.
In 2014, Actavis generated revenue of $13,062.3 million, employed 21,600 workers, and had more than 30 manufacturing and distribution facilities worldwide.
In the commercial business, self-insured coverage means the employer is responsible for the probable claim obligations of the employees.
Recently, Pfizer announced its plans to acquire Hospira. It’s a leading provider of injectable drugs and infusion technologies. It’s a global leader in biosimilars.
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