) reported first quarter 2014 earnings of $1.64 per American
Depository Receipt (ADR), up 23.6% from the prior-year earnings
of $1.32 per ADR. Earnings were well above the Zacks Consensus
Estimate of $1.12.
First quarter revenues rose 12.8% year over year to $525.3
million, beating the Zacks Consensus Estimate of $504
Quarter in Details
We note that all growth rates below are in constant exchange
Tracleer revenues were up 7% in the first quarter from the
prior year mainly due to U.S. rebate reversal and U.S. price
increases. Tracleer sales were strong in markets where Opsumit is
yet to be launched. Tracleer sales also benefited from growth in
Japan and the digital ulcer indication in Europe.
Ventavis sales were up 5% from the prior year due to U.S.
rebate reversal and U.S. price increases.
Veletri, launched in 2010, did very well with sales soaring
134% above the prior year. Growth was largely driven by demand in
Zavesca sales were up 16% 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
Opsumit (pulmonary arterial hypertension (PAH)) is currently
marketed in the U.S. (approved on Oct 18, 2013), Canada,
Australia, Germany, Swizerland, Denmark and Norway. Opsumit got
EU approval in Dec 2013. Opsumit generated sales of CHF 15
million (approximately $16.8 million) in the reported
Valchlor was launched in Nov 2013 to CTLC Centers of
Excellence. Valchlor sales in the first quarter of 2014 were CHF
1 million (approximately $1.1 million). By spring 2014, Valchlor
will be widely available to U.S. prescribers.
Research & development expenses (R&D) (excluding stock
based compensation expenses, amortization and depreciation)
increased 4% due to higher clinical development expenses.
Selling, general and administrative expenses (excluding stock
based compensation expenses, amortization, depreciation and the
impact of doubtful debt provisions) were up 14%.
The final data from a phase III study on a PAH candidate,
selexipag, is expected in mid 2014. Actelion's novel antibiotic,
cadazolid, to treat Clostridium difficile associated diarrhea is
also in phase III. Results will be out by early 2016. The FDA
granted Qualified Infectious Disease Product (QIDP) and Fast
Track designation to cadazolid in Feb 2014.
Actelion failed to meet its primary endpoint in a phase IV
study (COMPASS-2) on Tracleer in Mar 2014. The COMPASS-2 study
evaluated the effect of Tracleer on the time to first morbidity
or mortality event in patients with symptomatic PAH already
treated with Revatio.
For 2014, the company expects core earnings growth in the low
single-digit percentage range, above a tough 2013 comparison.
Actelion maintains its 2015 outlook of single-digit growth over a
Actelion carries a Zacks Rank #2 (Buy). The earnings and sales
were both above expectations in the first quarter, mainly to
price increases in the U.S. markets. We also note that the
product sales in the reported quarter included U.S. rebate
reversals worth CHF 18 million. Opsumit's approval in many
countries was encouraging. More than 2,300 patients were on
Opsumit at the end of Mar 2014.
Other well-placed stocks that look attractive at current
Salix Pharmaceuticals Ltd.
Impax Laboratories Inc
Enanta Pharmaceuticals, Inc.
Salix Pharma and Enanta carry a Zacks Rank #1 (Strong Buy) while
Impax Labs holds a Zacks Rank #2.
ACTELION LTD (ALIOF): Get Free Report
ENANTA PHARMA (ENTA): Free Stock Analysis
IMPAX LABORATRS (IPXL): Free Stock Analysis
SALIX PHARM-LTD (SLXP): Free Stock Analysis
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