) shares remained unaffected by the company's announcement
regarding the restructuring of its U.S. Specialty Brands sales
organization. The restructuring took place following the
completion of the company's Warner Chilcott acquisition on Oct 1,
The Actavis Specialty Brands segment will now have 750 sales
professionals in the U.S. including sales reps, district
managers, national account managers and associated management.
This represents downsizing from the combined sales force of 1,100
at the time the acquisition was closed.
Actavis said that the new sales organization will cover the
same or more than the legacy Warner Chilcott sales organization
with all therapeutic areas being covered.
Actavis will provide additional details at its upcoming
investor day in Jan 2014. Acquisitions have formed an integral
part of Actavis' expansion strategy with the company completing
four major acquisitions in the past few years. These include the
Arrow, Specifar, Actavis Group and Warner Chilcott
We are positive on the recently concluded Warner Chilcott
acquisition, which makes strategic and financial sense. The deal,
which will be immediately accretive, will also provide strong
operating cash flow and allow Actavis to de-lever its balance
sheet. The tax rate will also be significantly below earlier
With fewer major patent expiries slated to occur in the next
few years, we are encouraged by Actavis' focus on building its
branded and biosimilars pipeline. Actavis currently carries a
Zacks Rank #2 (Buy).
Some other stocks worth considering include
Impax Laboratories Inc.
KaloBios Pharmaceuticals, Inc.
Supernus Pharmaceuticals, Inc.
). While Impax holds a Zacks Rank #1 (Strong Buy), KaloBios and
Supernus carry a Zacks Rank #2.
ACTAVIS PLC (ACT): Free Stock Analysis Report
IMPAX LABORATRS (IPXL): Free Stock Analysis
KALOBIOS PHARMA (KBIO): Free Stock Analysis
SUPERNUS PHARMA (SUPN): Free Stock Analysis
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