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Actavis: A Diversified, Fully Integrated Specialty Company

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Company overview

Actavis (ACT) develops and manufactures generic and branded pharmeceutical products. Actavis also provides over-the-counter (or OTC) products and biosimilars in various therapeutic segments such as oncology and women’s health.

Actavis is also involved in the development and out-licensing of generic products through Medis, its third-party business.

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Share price information

The chart above compares the share price performance of Actavis with its peers and the Dow Jones US Health Care Index, illustrating that Actavis leads in returns. On an annualized basis, Actavis delivered returns of 49% from March 2010 to March 2015.

In the same period, Mylan (MYL) and Hospira (HSP) delivered annual returns of 23% and 10%, respectively. These returns can be monetized through investing in ETFs such as the iShares US Healthcare ETF (IYH) and the SPDR S&P Biotech ETF (XBI).

Key facts

Actavis is headquartered in Dublin, Ireland, and its administrative headquarters are located in Parsippany, New Jersey. The company is listed on the New York Stock Exchange (or NYSE), and its fiscal year ends on December 31. As of March 13, 2015, its market capitalization was $79.51 billion.

In fiscal 2014, Actavis generated revenue of $13,062.3 million, employed 21,600 workers, and had more than 30 manufacturing and distribution facilities worldwide. Medis has more than 300 customers, primarily in Europe, and has a portfolio of over 200 products in 130 countries.

History

Actavis has evolved through a series of mergers and acquisitions. Watson Pharmaceuticals was the initial company, listed on the NYSE in 1997 under the ticker WPI. In 2012, Watson acquired Actavis Group, a Swiss generic drug manufacturing company. This led to the change in the company name to Actavis, Inc., and the ticker changed from WPI to ACT.

To facilitate the business combination between Actavis, Inc. (formerly Watson) and Warner Chilcott plc. (WCRX), a new Actavis was formed, becoming Actavis plc (ACT), a public limited company headquartered in Ireland. In March 2015, after the acquisition of Allergan, the company began contemplating another name change.

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