Actavis Plc (NYSE:ACT), the leading drug maker that clinched the largest deal in the drug industry of 2014 by buying Allergan Inc has surpassed the analysts’ estimates with the sales going up by 59%. In a statement, Actavis has said that the first quarter profit of the company, excluding certain terms was around $4.30/share. Based on the data compiled by Bloomberg, analysts had predicted that the profit of the first quarter would be around $3.92.
Similarly, there was a significant increase in the overall revenue that rose to $4.23billion, as against the estimated average revenue of $4.1 billion by the analysts. The company’s share has gained 17% in the current year and rose to 3% to $301.74 in New York at the time of closing. The company became one of the biggest drug makers in the world when it completed the $66 billion deal on March 17 by purchasing Allergan, the Botox maker.
More than A Dozen Acquisitions
Actavis made its foray into the drug market starting with generic drugs. However, in the past five years, it has made more than a dozen acquisitions and has been growing its share in the branded medicine market. In July 2014, the drug manufacturer first acquired Forest Laboratories Inc. cracking a $21.8 billion deal with the company.
It has enabled the company to gain a brand name for its drugs treating central nervous system and gastrointestinal disorders. Actavis officials have predicted that the earnings per share of the company, including that of Allergan’s contribution will be $17 to $18.50 per share. Although undecided yet, according to rumors, Actavis is planning to rename its company as Allergan Plc and an announcement to this effect will be made at the June meeting.
The company with the new name will have its headquarters in Dublin with operational headquarters based in Parsippany, New Jersey. During the bid for Allergan, Actavis Plc (NYSE:ACT) received a tough competition from the renowned drug maker, Valeant Pharmaceuticals.