Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Actavis, Inc. (ACT - Analyst Report) is now a step closer to completing its acquisition of Warner Chilcott plc with the U.S. Federal Trade Commission (FTC) voting in favor of the acquisition. Actavis will, however, have to divest certain products.

The products that Actavis has agreed to divest include Zenchent Fe, Actavis’ generic version of Femcon Fe, pending applications for the company’s generic versions of Lo Loestrin Fe and Atelvia, and an approved application for Actavis’ generic version of Loestrin 24 Fe. Actavis has a settlement agreement for its generic version of Loestrin 24 Fe under which the product may be launched in Jan 2014. All these products will be divested to Amneal Pharmaceuticals.

The deal, which has received shareholder’s approval, should close shortly once approval from the Irish High Court is obtained and other customary closing conditions are fulfilled.

Actavis currently holds a Zacks Rank #2 (Buy). We are positive on the upcoming Warner Chilcott acquisition which makes strategic and financial sense. The Warner Chilcott acquisition will help strengthen Actavis’ position in the women’s health (eight products) and urology (six marketed products) segments. The company will also gain a presence in the gastroenterology and dermatology markets. Additionally, Actavis will gain a pipeline of 25 candidates including 15 targeting the women’s health market.

The acquisition is expected to be immediately accretive. Moreover, the acquisition will provide strong operating cash flow and allow Actavis to de-lever its balance sheet. The tax rate will also be significantly below current levels.

Currently, companies like Mylan (MYL - Analyst Report) and Akorn, Inc. (AKRX - Snapshot Report) also look well-positioned with both being Zacks Rank #2 stocks.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +5.98%
QUESTCOR PHA QCOR 79.70 +2.00%
VIPSHOP HOLD VIPS 156.45 +1.89%
ENLINK MIDST ENLC 36.31 +1.65%
FEDERAL SIGN FSS 15.34 +1.59%