Actavis Posts Loss In Q4 On Items, Results Top View

(RTTNews) - Specialty pharmaceutical company Actavis Plc. (ACT), which earlier this week agreed to acquire rival drug maker Forest Laboratories Inc. (FRX) for about $25 billion in cash and stock, Thursday reported a loss for the fourth quarter, compared to a profit last year. Adjusted earnings and revenues topped Wall Street expectations.

Net loss attributable to common shareholders was $148.4 million or $0.86 per share compared to a profit of $28 million or $0.21 per share last year.

The latest results included increased amortization, acquisition and licensing charges as well as higher impairment/asset sales and related costs. Further, prior year results included non-recurring gains of $119.1 million, while it recorded such losses in the just concluded quarter.

On an adjusted basis, earnings per share were $3.17, while it totaled $1.59 per share in the fourth quarter last year. On average, 19 analysts polled by Thomson Reuters expected earnings of $3.04 per share for the quarter. Analysts' estimates typically exclude special items.

The latest results include the contribution from Warner Chilcott businesses as of October 1, 2013, while prior-year results include contribution from legacy Actavis as of November 1, 2012. Net revenue increased 59 percent to $2.779 billion from $1.75 billion in the fourth quarter 2012. Wall Street expected revenues of $2.66 billion.

Actavis Pharma net revenue increased 20 percent to $1.70 billion, due to the acquisition of legacy Actavis in November 2012 and new product launches including generic versions of Suboxone sublingual tablets, Cymbalta and Lidoderm.

Actavis Specialty Brands net revenue surged to $695.5 million from $132.2 million, primarily due to the inclusion of Warner Chilcott brands sales of $545.4 million.

In Anda Distribution segment, net revenue increased 88 percent to $383 million, as a result of volume increases and new product launches.

It was on February 18 that Actavis announced the deal with Forest Laboratories. The deal is expected to create a specialty pharmaceutical company with combined annual revenues of over $15 billion targeted for 2015.

Actavis said today that as a result of this acquisition, it plans to provide an updated financial forecast for the year following the close of the acquisition which is expected to occur mid-year 2014.

On a standalone basis, Actavis reiterated the financial forecast presented on January 31, which projected full year 2014 adjusted earnings per share between $12.60 and $13.10 and revenues above $10 billion. Analysts look for earnings of $12.99 and revenues of $10.86 billion.

ACT, which closed up 4.5 percent on Wednesday at $210.56, is advancing 1.2 percent in pre-market activity.