COMPANY DESCRIPTION
Actavis offers over-the-counter products. Actavis plc also offer biosimilar solutions in womens health oncology and other therapeutic categories. In addition it offers pharmaceutical solutions in the areas of urology gastroenterology and dermatology therapeutic categories. Actavis plc produces medicines in various formulations including tablets capsules injectables suppositories sprays steriles powders oral liquids and semisolids. It sells its solutions in Ireland and internationally. Actavis plc was founded in 1983 and is based in Little Island Ireland. Actavis plc has development and manufacturing facilities in Europe the United States and Asia.
ECONOMIC MOAT
In our opinion, Actavis' moat company is evidenced by ACT possessing an industry-leading portfolio in the specialty markets of ophthalmology and aesthetics, which enjoy high barriers to entry and lower risk of generic competition than most pharmaceutical products. Actavis should harness Allergan’s product innovation, which should help keep pricing and market share healthy.
OUTLOOK
Actavis recently completed its purchase of Allergan. Much like past years, top- and bottom-line comparisons are expected to benefit considerably from acquisitions (in this case Forest and Allergan). In our view, Actavis has constructed an attractive portfolio of branded and generic franchises that should continue to drive strong results in 2015 and 2016.
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STRENGTHS
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Merger of Watson and Actavis created combined entity with expanded product portfolio and geographic reach.
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Strong R&D helping Actavis strengthen its product pipeline.
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Diversification into distribution and branded pharmaceutical businesses
WEAKNESSES
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High dependence on third-party manufacturers.
THREATS
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Stringent government regulations could lead to generic price erosion
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Increasing competition in pharma distribution business
OPPORTUNITIES
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Acquisition of Allergan would help Actavisexpand its product portfolio and geographicreach
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Integrating Forest Labs could significantly enhance Actavis’ portfolio of specialty pharmaceuticals.
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Furiex would strengthen Actavis’ GI businessIncreasing presence in lucrative biosimilar market
The above report is for information purposes only, and is not a solicitation or offer to buy or sell any securities. Past performance is no guarantee of future performance. Neither diversification nor asset allocation ensures a profit or guarantees against loss. Before investing, investors should consider their risk tolerance, investment objectives, time horizon, available capital, and charges and expenses.
The information presented in this report has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guranteed. All material is subject to change without notice. The views and opinions expressed are those of Focused Stock Research and/or WALT ST Investment Management, Ltd. and in no way reflect the views and opinions of Investment Consultants nor their Broker Dealers.
