Wide-Moat Transformation of Actavis plc (NYSE:ACT) Gives Shareholder Rewards

A recent study on Actavis plc (NYSE:ACT) have found that market hasn’t done justice to the transformation brought by the company. It carries a good earning potential and various other benefits, but the market has underappreciated these factors recently.

Learn what the indicators are telling the analyst about ACT.

Insights On Matter:

As per the reports, the recent study that was carried out, focused on three major points:

  • low generic competition risk
  • Broad product diversification
  • Healthy pipeline offers long-term potential for the economic profits.

The management of the company has been focusing on enhancing pipeline productivity and sales force’s efficacy. The study claims that if these two approaches are put together with cost synergies, then they should be able to extra-ordinary average earnings growth.

From Down To Top:

The fact that puts Actavis on top of other companies in the same industry is that it has always focused on the unique opportunistic acquisitions and launch of generic drugs. It initially started as an ordinary generic drug manufacturer, but has turned into one of the best and most sought after specialty pharmaceutical companies over these years.

If the position of Actavis’ in United States a few years ago is taken into consideration, then one can see that it was nothing more than a U.S.-centric generic drug manufacturing company with very limited global exposure. Other players like Mylan and TEVA had a lot more exposure on the international level than Actavis plc (NYSE:ACT), but still it outperformed them within a few years. Actavis has executed four major acquisition transactions worth $105 billion since 2012. These transactions have not only improved its expertise in the generic industry, but also established it as a major player in gastroenterology, women’s health, aesthetics, ophthalmology and central nervous system.

Experts claim that the future market conditions will favor Actavis in carrying out its operations. It can be a good choice for those who want to bet their money on something that can offer consistent returns over the long period.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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