) shares gained 1.64% immediately after the company announced
that it has acquired Thailand-based generic company, Silom
Medical Company for approximately $100 million in cash. Although
shares were down slightly (0.22%) in the subsequent trading
session, overall shares were up 1.42% following the announcement.
With this acquisition, Actavis is now among the top-five players
in the Thai generic pharmaceutical market. This acquisition will
also help Actavis expand futher in the Southeast Asian region.
With Silom's diverse product portfolio, Actavis expects this
acquisition to be immediately accretive to 2014 earnings.
Actavis has been in an acquisition spree of late. Acquisitions
over the past two years include that of the Actavis Group in Oct
2012 and Warner Chilcott in Oct 2013.
In Feb 2014, Actavis announced its intention to acquire
Forest Laboratories Inc.
) for a cash and equity combination of $25 billion. This
acquisition will help Actavis generate sales of more than $15
billion per year and create a well-diversified portfolio for the
The Forest Labs acquisition will push up Actavis' branded
products revenues to 50% of total combined revenues from the
current level of 30% of the standalone company's revenues. The
acquisition will also bring about significant synergies and boost
the bottom line. The deal is slated to close in mid-2014.
ACTAVIS PLC (ACT): Free Stock Analysis Report
FOREST LABS A (FRX): Free Stock Analysis
IMPAX LABORATRS (IPXL): Free Stock Analysis
MALLINCKRODT PL (MNK): Free Stock Analysis
To read this article on Zacks.com click here.
Meanwhile, Actavis completed the divestiture of its generics
commercial operations in certain markets (France, Italy, Spain,
Portugal, Belgium, Germany and the Netherlands) in Western Europe
to Aurobindo Pharma Ltd.
Actavis carries a Zacks Rank #2 (Buy). Some better-ranked stocks
in the health care sector include
Impax Laboratories Inc.
). While Mallinckrodt carries a Zacks Rank #1 (Strong Buy), Impax
holds a Zacks Rank #2 (Buy). Forest Labs also carries a Zacks