Citadel Advisors and Actavis Plc
Citadel Adivors’ new stock purchases include Workday, Inc. (WDAY) and Liberty TripAdvisors (LTRPA). The hedge fund exited positions in United Rentals (URI) and Akron, Inc. (AKRX). Citadel Advisors also increased positions in Tesoro Petroleum Co. (TSO), Actavis Plc (ACT), Antero Resources Corp. (AR), and Anadarko Petroleum (APC). The firm decreased positions in Apple (AAPL), Citigroup (C), and Invesco Ltd. (IVZ).
Citadel Advisors increased its position in Actavis Plc by $378 million for 3Q14.
Actavis is one of the leading integrated global specialty pharmaceutical companies. It develops, manufactures, markets, sells, and distributes generic, branded generic, brand name, biosimilar, and over-the-counter pharmaceutical products.
The company has operations in more than 60 countries. However, the US is its largest commercial market. The US represented more than half of its total net revenues for 2013. Actavis develops biosimilar products within the Actavis Specialty Brands segment.
Actavis also distributes generic and certain select brand pharmaceutical products. The products are manufactured by third parties. They’re manufactured through the Anda Distribution segment. Actavis has global headquarters in Dublin. In the US, it has administrative headquarters in Parsippany, New Jersey.
Actavis has more than 35 manufacturing and distribution facilities around the world. Annually, it has a capacity of ~40 billion units. Actavis Global Operations includes Anda, Inc. Anda is the fourth largest generic pharmaceutical product distributor in the US.
Actavis to acquire Allergan Inc.
In November 2014, Actavis announced that it will acquire Allergan, Inc. in order to become one of the biggest pharmaceutical companies in the world. It will have expected annual revenues of $23 billion.
The acquisition is valued at $66 billion—or $219 per share in cash and Actavis shares. Allergan is one of the most dynamic and fastest-growing pharmaceutical companies globally. The acquisition will ensure that Actavis becomes one of the largest pharmaceutical companies in the world. Actavis’ management also stated that it will generate long-term double-digit growth.
Actavis emphasizes growth in the following areas:
- Internal development of differentiated high-demand products.
- Establishment of strategic alliances and collaborations that bring new products, technologies, and markets to the existing portfolio.
- Acquisition of products or companies that complement the existing portfolio in generics, brands, and biosimilars.
On July 2, 2014, through its subsidiary Forest Laboratories, Actavis successfully completed its acquisition of Furiex Pharmaceuticals in an all-cash transaction valued at ~$1.1 billion and up to ~$360 million in a contingent value right.
The next part in this series will discuss Citadel Advisors’ increased position in Antero Resources.