Actavis Earnings Soar as Closing of Allergan Deal Looms

By Michael Calia 

Actavis PLC raised its profit guidance for 2015, while acquisitions again helped drive revenue growth in the fourth quarter, as the company awaits the close of its deal to buy Botox maker Allergan Inc.

The results easily surpassed analysts' expectations.

The company raised its outlook for 2015 to a range of $16.30 to $17.30 a share.

The Dublin-based company's revenue was aided by recent acquisitions, a trend Actavis hopes to continue with its deal for Allergan, which is expected to close in either the late first quarter or early second quarter.

To prepare for the consummation, Actavis earlier this month reached a deal to sell the U.S. rights to acne treatment Doryx to Mayne Pharma, a move that came on the heels of its agreement to sell its branded respiratory business in Canada and the U.S. to AstraZeneca PLC.

For the most recent quarter, Actavis posted a loss of $732.9 million, or $2.76 a share, compared with a loss of $148.4 million, or 86 cents a share, a year ago. Excluding certain items, per-share earnings improved to $3.91 from $3.17.

Revenue jumped 46% to $4.06 billion.

Analysts had projected earnings of $3.67 a share and revenue of $3.84 billion.

North American brand revenue surged to $1.83 billion from $635.1 million, driven by acquisitions and sales of legacy products.

North American generics and international revenue rose 1.2% to $1.78 billion as strong sales of generic versions of several leading drugs offset declines related to divestitures.

Sales at the company's Anda distribution segment, which includes revenue stemming from the distribution of third-party products, rose 16% to $443.3 million.

Write to Michael Calia at [e-mail]

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