) reported third quarter 2013 earnings of 99 cents per American
Depository Receipt (ADR), up 18.7% from the prior-year earnings
of 83 cents per ADR. Earnings surpassed the Zacks Consensus
Estimate of 87 cents.
The company reported net revenues of $470.8 million, up 3.3%
from $455.8 million reported in the third quarter of 2012.
Revenues were above the Zacks Consensus Estimate of $463
Research & development expenses (R&D) (excluding stock
based compensation expenses) declined 8.65%. R&D expenses are
expected to rise in the final quarter of the year because of the
cadazolid phase III study and other development programs.
Selling, general and administrative expenses (excluding stock
based compensation expenses) were down by 1%.
We note that all growth rates below are in local currency and
represent growth over the prior-year period.
The First Nine Months in Detail
Product sales were up 4% in the first nine months of 2013 from
the prior-year comparable period. We note that Actelion has four
marketed products - Tracleer, Ventavis, Veletri and Zavesca.
Tracleer revenues were up 3% in the first nine months of 2013
mainly due to an increase in wholesaler inventory levels, rise in
the shipment of units and higher prices in the U.S. Ventavis
sales were down 2% from the prior year. The decline was
attributable to a competitive market. Veletri, launched in 2010,
did very well with sales soaring 47%. Zavesca sales were up 17%
from the prior year. Strong sales of the drug for the
Niemann-Pick Type C indication in ex-U.S. markets and increasing
prices contributed to its impressive showing.
Actelion continues to expect double-digit core earnings growth
in 2013. For 2014, the company expects to maintain the same level
of core earnings growth as seen in 2013 and at least single-digit
growth in 2015.
The regulatory process for the approval of Opsumit pulmonary
arterial hypertension (PAH) in the U.S., EU and other markets is
in progress. A decision from the U.S. Food and Drug
Administration (FDA) on the candidate is expected by Oct 19,
2013. Approval in Europe is expected in early 2014.
The final result from a phase III study on another PAH
candidate, selexipag is expected in mid 2014. Actelion's novel
antibiotic, cadazolid, to treat Clostridium difficile associated
diarrhea has moved into phase III study.
Actelion has completed the acquisition of privately-held
Ceptaris Therapeutics. The acquisition closed on the heels of the
erstwhile Ceptaris' Valchlor gaining FDA approval in mid-Sep
2013. Valchlor is indicated for the treatment of early-stage
mycosis fungoides-type cutaneous T-cell lymphoma. Valchlor
will be launched by year end. The company will use a dedicated
sales force and will evaluate the opportunity outside the U.S.,
before filing for registration in other markets.
Actelion completed a share buyback program worth CHF 800
million in Aug 2013, which was initiated in Oct 2010. Actelion
has bought back shares worth CHF 417 million so far in 2013.
Actelion carries a Zacks Rank #1 (Strong Buy). Currently,
Isis Pharmaceuticals, Inc.
AMAG Pharmaceuticals Inc.
) look equally attractive.
ACTELION LTD (ALIOF): Get Free Report
AMAG PHARMA INC (AMAG): Free Stock Analysis
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