) reported first quarter 2012 earnings of 71 cents per American
Depository Receipt (ADR), down 49% from the prior-year earnings of
$1.39. Results were hurt by lower revenues. Earnings were above the
Zacks Consensus Estimate of 66 cents.
First Quarter Details
The company reported net revenue of approximately $453 million,
down 19.3% from $561 million reported in the first quarter of 2011.
Revenues were short of the Zacks Consensus Estimate of $468
million. The decline in revenues was due to lower product sales and
contract revenues. All growth rates below are in local
currency and represent growth over the prior-year period.
Product sales were down 4% from the prior year period. Results
were hurt by a weak performance in the US due to excessive
competition coupled with low levels of inventory. On a regional
basis, 37% of product revenues came from the US (down 12%), 41%
from Europe, 11% from Japan (up 3%) and the balance from the rest
of the world (down 1%).
The company currently has four products in the market. Three of
them, Tracleer, Ventavis and Veletri are indicated for the
treatment of pulmonary arterial hypertension. The fourth drug,
Zavesca, is indicated for the treatment of Gaucher's disease.
Tracleer revenues were down 6% in the first quarter mainly due
to lower levels of inventory.Ventavis sales were up 1% from the
prior year. Veletri, launched in 2010, did very well in the quarter
with sales soaring 111% due to a strong performance in the US.
Zavesca sales were up 19% from the prior year due to strong
performances in markets such as the US, Canada, the Czech Republic,
Germany, Turkey and Italy.
Contract revenue in the quarter was negligible during the
quarter and plummeted sharply due to the termination of Actelion's
) regarding insomnia candidate, almorexant, in January 2011. The
first quarter of 2012 saw Actelion recognizing revenues from the
deal for the last time.
Actelion continues to expect 2012 core earnings to be flat year
over year in terms of local currency.
The shares of Actelion retain a Zacks #3 Rank (short-term Hold
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