Drugmaker Actavis' 4Q earnings sink 70 percent

PARSIPPANY, N.J. -- Actavis Inc., formerly named Watson Pharmaceuticals, said Tuesday that its fourth-quarter earnings fell 70 percent from a year-ago period that got a big boost from the debut of its generic version of the cholesterol fighter Lipitor. Still, results topped expectations and the company backed its outlook for 2013.

Watson recently changed its name to Actavis after completing its $5.6 billion purchase of Swiss drugmaker Actavis Group, which created the third-largest generic drug company in the world.

The newly combined company said Tuesday that it earned $28 million, or 21 cents per share, in the three months that ended Dec. 31. That compares with Watson's profit of $94.8 million, or 75 cents per share, in the final quarter of 2011. Adjusted earnings for the latest fourth quarter fell 10 percent to $1.59 per share.

In 2011, Watson launched an authorized generic version of Lipitor, the world's best-selling drug, under an agreement with Lipitor maker Pfizer Inc. Sales of a generic Lipitor contributed 64 cents to Actavis' earnings in the 2011 quarter compared with just 3 cents in last year's fourth quarter. Several other drugmakers have started selling generic Lipitor since Watson's version debuted. Actavis also said operating costs climbed 26 percent in the latest period to $1.73 billion, due in part to acquisition and integration charges.

The Parsippany, N.J., company's revenue climbed 13 percent to $1.75 billion from $1.54 billion a year earlier, helped by new products in key markets including generic versions of deep vein thrombosis treatment Lovenox, asthma medication Xopenex and ADHD drug Adderall XR in the U.S.

The performance topped Wall Street expectations. Analysts surveyed by FactSet expected, on average, earnings of $1.53 per share on $1.74 billion in revenue.

For the full year, the company earned $97.3 million, or 76 cents per share, as revenue rose 29 percent to $5.91 billion. For 2013, the company reaffirmed a forecast it made last month for adjusted earnings of between $7.70 and $8.10 per share on about $8.1 billion in revenue.

Analysts, on average, expect earnings of $8.03 per share on about $8.1 billion in revenue.

Actavis shares fell 39 cents to $84.85 on Tuesday, while broader trading indexes rose less than 1 percent. The stock is down slightly since closing 2012 at $86.

View the original article here

Actavis, formerly Watson, sees 2013 profit growth

Jan 25 (Reuters) - Actavis Inc, the generic drugmaker previously known as Watson Pharmaceuticals, said on Friday that it expected earnings to rise at least 30 percent in 2013 as it expands globally, but its outlook still came in short of analysts' expectations.

Actavis said it expected earnings to rise to a range of $7.70 to $8.10 per share in 2013. Analysts on average are expecting $8.20 per share, according to Thomson Reuters I/B/E/S.

The third-largest global generic drugmaker changed its name this week from Watson after buying Actavis as part of its strategy to expand in international markets and offer more specialty drugs.

The company, which is holding a meeting with investors on Friday, said it expected 2012 earnings per share to be at the high end of its forecast range of $5.85 to $5.95.

That is in line with analysts' expectations for earnings of $5.93 per share, according to Thomson Reuters I/B/E/S, and represents growth of 25 percent from 2011.

View the original article here

Actavis predicts 2013 profit growth short of St.

PARSIPPANY, N.J. -- Generic drug developer Actavis Inc., formerly named Watson Pharmaceuticals, predicted profit growth for 2013 that was short of Wall Street's expectations.

The Parsippany, N.J., company changed its name to Actavis after buying Swiss drugmaker Actavis Group for about $5.6 billion in October.

Actavis' financial outlook for 2012 was in line with market predictions. The newly combined company said Friday before its investor meeting in New York that it expects 2012 adjusted earnings to be at the high end of a previously forecast range of $5.85 to $5.95, with revenue growing 29 percent to $5.9 billion.

Analysts polled by FactSet expect profit of $5.93 per share on revenue of $5.89 billion.

But its 2013 profit estimate fell short. For this year, Actavis predicted adjusted earnings of between $7.70 and $8.10 per share on about $8.1 billion in revenue.

Analysts expected profit of $8.19 per share on $8.09 billion in revenue.

As part of the name change, the company's New York Stock Exchange ticker symbol switched to "ACT" from "WPI."

The shares, which were inactive in premarket trading Friday, have gained 50 percent in the last 12 months.

View the original article here

Watson Pharma changes name to Actavis Inc.

PARSIPPANY, N.J. -- Watson Pharmaceuticals Inc. said Thursday it has changed its name to Actavis Inc. following its purchase of the Swiss drugmaker in October.

As part of the change, the company's New York Stock Exchange ticker symbol switched to "ACT" from "WPI."

Watson agreed to buy Actavis Group in April for about $5.6 billion. It completed the deal on Oct. 31 and announced the planned name change on that date. The new Actavis is the third-largest generic drug company in the world and has about $8 billion in annual revenue.

Actavis shares rose 86 cents to $86.59 in morning trading. The stock has risen 46.5 percent since rumors about Watson buying Actavis began to circulate in March. The shares have been trading at all-time highs for months, peaking at $91.47 in late December.

View the original article here