Actavis Unveils Long-Term Growth Strategy
Actavis unveiled its long-term growth strategy this week and officially re-introduced itself under the Actavis name following the EUR 4.25-billion ($5.4 billion) acquisition of the Actavis Group by Watson Pharmaceuticals in 2012. Following the completion of its acquisition of the Actavis Group in October 2012, Watson announced the newly combined company would take the Actavis name. At an investor meeting in New York last week, Actavis provided an in-depth look into the newly combined company’s global commercial operations, diversified business structure, and outlook for continued long-term growth.
“2012 was a landmark year for our company as we continued our evolution into a global specialty pharmaceutical leader,” said Paul Bisaro, President and CEO of Actavis, in a Jan. 25, 2013, press release. “Total revenue grew at approximately 29%, non-GAAP earnings per share grew an exceptional 25% and cash flow from operations was in excess of $600 million. We enter 2013 as the world’s third largest global generic company, with a strong, sustainable financial foundation that is well-positioned for continued long-term growth. With a strengthened global commercial position spanning 62 countries and a commitment to funding R&D at levels sufficient to generate a robust and diversified development pipeline encompassing generics, brands and biosimilars, the new Actavis is positioned to deliver on our promise of double-digit growth in 2013 and beyond.”
On a combined basis for Watson and Actavis for 2012, US growth was driven by strong performance of the base business, which was complemented by more than 30 new product launches in the US. In Europe, revenues grew more than 20% from 2011 to 2012. Actavis Specialty Brands, the new name for Actavis’s global brands business, saw growth in select franchises (Rapaflo, Generess, FE, and Crinone), the successful conversion of Androderm 2.5 and 5 mg to 2.0-mg and 4-mg strengths, and continued progress on biosimilars, including the development of rFSH and the Amgen collaboration products. Actavis also advanced its position in women’s health through its recently announced acquisition of Uteron Pharma.
Actavis nows operates 30 facilities representing a combined manufacturing capacity of approximately 44 billion units, with enhanced capabilities in modified-release solid dosage, semisolids, transdermals, liquids, and injectables, according to the company. The company also reported progress on several recent initiatives to rationalize its supply chain, including expected plant closures, sales, or restructuring efforts at its locations in Corona, California; Mississauga, Ontario, Canada; and Alathur, India. Also, in 2012, Actavis opened a new distribution facility in Olive Branch, Mississippi, to improve distribution efficiency.
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Watson Completes Acquisition of Actavis, Will Take Actavis Name