Actavis Details Strategy for Continued Long-Term Growth

Fri Jan 25, 2013 7:00am EST

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- 2012 Revenue Forecast to be Approximately $5.9 Billion -
PARSIPPANY, N.J.,  Jan. 25, 2013  /PRNewswire/ -- Actavis, Inc. (NYSE: ACT),
formerly Watson Pharmaceuticals, Inc., today provides an in-depth look into the
newly combined company's global commercial operations, diversified business
structure and outlook for continued long-term growth during its fourth annual
Investor Meeting in New York.   

In conjunction with the meeting, the Company announces 2012 non-GAAP earnings
per diluted share are expected to be at the high-end of the previously
forecasted range of  $5.85 to $5.95, an increase of 25 percent over 2011 full
year non-GAAP earnings.  The Company expects full year 2012 revenues of
approximately  $5.9 billion, an increase of 29 percent over 2011.

"2012 was a landmark year for our Company as we continued our evolution into a
global specialty pharmaceutical leader," said  Paul Bisaro, President and CEO of
Actavis.  "Total revenue grew at approximately 29 percent, non-GAAP earnings per
share grew an exceptional 25 percent and cash flow from operations was in excess
of  $600 million."

"We enter 2013 as the world's third largest global generic company, with a
strong, sustainable financial foundation that is well-positioned for continued
long-term growth.  With a strengthened global commercial position spanning 62
countries and a commitment to funding R&D at levels sufficient to generate a
robust and diversified development pipeline encompassing generics, brands and
biosimilars, the new Actavis is positioned to deliver on our promise of
double-digit growth in 2013 and beyond."

Actavis Pharma

Actavis' global generics business - now known as Actavis Pharma - dramatically
expanded its global footprint in 2012, providing the Company with an extensive
platform for strong, future organic growth.  The business is geographically
diverse, with access to areas of high growth within its top 10 markets,
including the U.S., UK,  Australia,  France  and Russia.  Aside from the U.S.,
no market makes up more than 10 percent of Actavis Pharma's 2012 pro forma net
revenue.

"2012 was a strong year for both  Watson  and Actavis globally.  On a combined
basis, U.S. growth was driven by strong performance of the base business, which
was complemented by more than 30 new product launches in the U.S. alone.  In
Europe, revenue grew more than 20 percent from 2011 to 2012," said  Siggi
Olafsson, President, Actavis Pharma.  "We also continued to build for the
future, with more than 1,500 generic product filings on a pro forma basis.  Our
combined R&D organization has delivered a world-class portfolio that spans all
dosage forms.  We are also leaders in PIV filings, with 49 applications that we
believe to be first-to-file."

"Our strategy in 2013 is to drive worldwide growth across our global business. 
We intend to focus on improving our position in key markets and further
expanding our portfolio with a special emphasis on broadening our injectable and
OTC businesses outside of the U.S.  We are committed to optimizing the potential
of our global commercial network," concluded Olafsson.  

Actavis Specialty Brands



Actavis Specialty Brands - the new name for Actavis' global brands business -
saw sustained growth in the last year from the Rapaflo®, Generess®  FE and
Crinone®  franchises, the successful conversion of Androderm®  2.5 and 5 mg to
2.0 and 4 mg strengths and continued progress on biosimilars, including the
development of rFSH and the Amgen collaboration products.  The business also
furthered its commitment to women's health through the recently announced
acquisition of Uteron Pharma SA.

"The acquisition of Uteron offers a compelling strategic fit and provides a
vehicle for Actavis Specialty Brands to expand our Women's Health business
worldwide," said  Fred Wilkinson, President, Actavis Specialty Brands.  "It
expands our pipeline of Women's Health products, including two potential
near-term global commercial opportunities in contraception and infertility, and
provides the potential for multiple global product introductions through the
latter half of the decade."

"In addition to the newly acquired Uteron assets, our key project pipeline
includes our Progestin contraceptive patch, which has successfully completed
Phase III trials and is expected to have a New Drug Application (NDA) submitted
to the FDA in early 2013, with a potential launch in late 2014.  We filed Esmya®
 for presurgical anemia in  Canada  in the second quarter of 2012, with an
approval possible in 2013.  We plan to re-initiate Phase III trials for
long-term uterine sparing in the U.S. during the second quarter of 2013.  An NDA
submission for the product is expected in 2015, with the potential for approval
in 2016.  Additionally, our partner, Population Council, continued to make
progress on the development of our Vaginal Contraceptive Ring."

"Through our ongoing collaboration with Amgen, we are also actively pursuing
biosimilar versions of four products: Herceptin®, Avastin®, Rituxan/MabThera® 
and Erbitux®, which are among the fastest-growing medicines worldwide," added
Wilkinson.   

Actavis Global Operations



"Actavis' global operations expanded significantly in 2012, now operating 30
facilities representing a combined manufacturing capacity of approximately 44
billion units," said  Robert Stewart, President, Actavis Global Operations. 
"Our manufacturing network has enhanced capabilities in modified release solid
dosage, semi-solids, transdermals, liquids and injectables."

"We also made significant progress on several recent initiatives to rationalize
our supply chain while maintaining operational excellence, including expected
plant closures, sales or restructuring efforts at our locations in  Corona,
California;  Mississauga, Ontario, Canada; and Alathur, India.  In the year
ahead, we will look to further improve our cost of goods by capturing purchasing
synergies and continuing to optimize our global manufacturing network."

"Additionally, our Anda distribution business had another remarkable year, both
in revenue and bottom line contribution.  Anda's highlights in 2012 included
opening a new distribution facility in  Olive Branch, Mississippi  to improve
distribution efficiency.  Additionally, Anda launched new programs to increase
product offerings to include more branded and specialty products.  With the
addition of branded products and specialty distribution capability, Anda is
poised to continue to deliver value for Actavis," said Stewart.

2013 Financial Outlook

"Actavis is excellently positioned to deliver growth, and generate strong cash
flow to support the rapid pay-down of debt," said  R. Todd Joyce, Actavis' Chief
Financial Officer.  "We continue to expect  $100 million  in cost synergy
savings in 2013, which are principally comprised of SG&A, R&D and procurement
savings on raw materials."   

"Our 2013 forecast assumes a second quarter launch of generic Pulmicort
Respules®  and includes no additional patent challenges.  It also assumes an
additional competitor for generic Concerta®.  Our forecast also assumes no
competition on generic Lidoderm®  or generic Adderall®  XR until 2014, low
single-digit pricing erosion in the U.S., mid single-digit percentage price
erosion ex-U.S. and 134 million shares outstanding," concluded Joyce.

Actavis estimates total net revenue for 2013 will be approximately  $8.1
billion, including:

* Total Actavis Pharma (formerly Global Generics) segment revenue of between 
$6.3 billion and $6.5 billion.  
* Total Actavis Specialty Brands (formerly Global Brands) segment revenue of
between  $550 million and $600 million.  
* Total Anda Distribution segment revenue of between  $1.0 billion and $1.2
billion.  
* GAAP R&D is expected to be between  $550 million and $600 million.  
* GAAP SG&A is expected to be between  $1.55 billion and $1.65 billion.  
* Adjusted non-GAAP earnings for 2013 is expected to be between  $7.70 and $8.10
 per diluted share.  
* Adjusted EBITDA for 2013 is expected to be between  $1.87 billion and $1.94
billion.  
* Non-GAAP tax rate is expected to be between 27 percent to 29 percent.

Please refer to the tables at the conclusion of this press release for a
reconciliation of non-GAAP items.  



Actavis'  January 25, 2013  Investor Day meeting is being webcast live, and can
be accessed by logging onto  www.actavis.com  or the following link: 
http://www.videonewswire.com/event.asp?id=91366.  A replay of the webcast will
also be available on Actavis' Web site.

About Actavis

Actavis, Inc. (NYSE: ACT) is a global, integrated specialty pharmaceutical
company focused on developing, manufacturing and distributing generic, brand and
biosimilar products.  The Company has global and U.S. headquarters in 
Parsippany, New Jersey, USA, and international headquarters in Zug, Switzerland.
  

Actavis is the world's third-largest generics prescription drug manufacturer. 
Operating as Actavis Pharma, the Company develops, manufactures and markets
generic, branded generic, legacy brands and Over-the-Counter (OTC) products in
more than 60 countries.  The Company is ranked in the top 3 in 12 global
markets, the top 5 in 16 global markets, and in the top 10 in 33 global markets.
  Actavis Pharma also develops and out-licenses generic pharmaceutical products
outside the U.S. through its Medis third-party business, the world's largest
generic pharmaceutical out-licensing business. Medis has more than 300 customers
globally, and offers a broad portfolio of more than 200 products.   

Actavis Specialty Brands is the Company's global branded specialty
pharmaceutical business, which develops and markets a portfolio of approximately
40 products principally in  the United States  and  Canada  that are focused in
the Urology and Women's Health therapeutic categories.  Actavis Specialty Brands
is committed to developing and marketing biosimilars products in Women's Health,
Oncology and other therapeutic categories, and currently has a portfolio of 5
biosimilar products in development.  

Actavis Global Operations has more than 30 manufacturing and distribution
facilities around the world, with a capacity of approximately 44 billion units
annually.  Actavis Global Operations also includes Anda, Inc., the
fourth-largest U.S. generic pharmaceutical product distributor in  the United
States.

For press release and other company information, visit Actavis' Web site at 
http://www.actavis.com.

Forward-Looking Statement  

Statements contained in this press release that refer to Actavis' estimated or
anticipated future results or other non-historical facts are forward-looking
statements that reflect Actavis' current perspective of existing trends and
information as of the date of this release.  For instance, any statements in
this press release concerning prospects related to Actavis' strategic
initiatives, product introductions and anticipated financial performance are
forward-looking statements.  It is important to note that Actavis' goals and
expectations are not predictions of actual performance.  Actavis' performance,
at times, will differ from its goals and expectations.  Actual results may
differ materially from Actavis' current expectations depending upon a number of
factors affecting Actavis' business.  These factors include, among others, the
inherent uncertainty associated with financial projections; successful
integration of the legacy Actavis acquisition and the ability to recognize the
anticipated synergies and benefits of the legacy Actavis acquisition; the
difficulty of predicting the timing and outcome of pending patent litigation and
risks that an adverse outcome in such litigation could prevent us from selling
products and render Actavis liable for substantial damages; the impact of
competitive products and pricing; risks related to fluctuations in foreign
currency exchange rates; periodic dependence on a small number of products for a
material source of net revenue or income; variability of trade buying patterns;
changes in generally accepted accounting principles; risks that the carrying
values of assets may be negatively impacted by future events and circumstances;
the timing and success of product launches; the difficulty of predicting the
timing or outcome of product development efforts and regulatory agency approvals
or actions, if any; market acceptance of and continued demand for Actavis'
products; difficulties or delays in manufacturing; the availability and pricing
of third party sourced products and materials; successful compliance with
governmental regulations applicable to Actavis' facilities, products and/or
businesses; changes in the laws and regulations, including Medicare, Medicaid,
and similar laws in foreign countries affecting, among other things, pricing and
reimbursement of pharmaceutical products and the settlement of patent
litigation; and such other risks and uncertainties detailed in Actavis' periodic
public filings with the Securities and Exchange Commission, including but not
limited to Actavis' Annual Report on form 10-K for the year ended  December 31,
2011  and its Quarterly Report on Form 10-Q for the period ended  September 30,
2012  (such periodic public filings having been filed under the "Watson
Pharmaceuticals, Inc." name).  Except as expressly required by law, Actavis
disclaims any intent or obligation to update these forward-looking statements.  

Trademarks noted in this press release are the property of their respective
registered owners.  

The following table presents a reconciliation of forecasted net income for the
twelve months ended  December 31, 2013  to non-GAAP net income and non-GAAP
earnings per diluted share:

 Reconciliation Table - Forecasted Non-GAAP Earnings Per Diluted Share                                                            
 (Unaudited; in millions except per share amounts)                                                                                
                                                                                                                             
                                                                             Forecast for Twelve Months                        
                                                                             
Ending December 31, 2013                         
                                                                             Low                           High              
                                                                                                                             
 GAAP to Non-GAAP net income calculation                                                                                      
                                                                                                                             
                       GAAP net income                                       $            440              $            490  
                       Adjusted for:                                                                                         
                       Amortization                                          625                           630               
                       Global supply chain initiative                        35                            35                
                       Acquisition and licensing charges                     150                           150               
                       Interest accretion on contingent liability            7                             7                 
                       Non-cash impairment charges                                                                           
                       Non-recurring (gains) losses                                                                          
                       Income taxes on items above                           (222)                         (224)             
                       Adjusted Non-GAAP net income                          1,035                         1,088             
                                                                                                                             
 Diluted earnings per share                                                                                                   
                                                                                                                             
                       Diluted earnings per share - GAAP                     $           3.27              $           3.65  
                                                                                                                             
                       Diluted earnings per share - Non-GAAP                 $           7.70              $           8.10  
                                                                                                                             
                       Diluted weighted average common shares outstanding    134.4                         134.4             


The reconciliation table is based in part on management's estimate of non-GAAP
net income for the year ending  December 31, 2013. Actavis expects certain known
GAAP charges for 2013, as presented in the schedule above. Other GAAP charges
that may be excluded from non-GAAP net income are possible, but their amounts
are dependent on numerous factors that we currently cannot ascertain with
sufficient certainty or are presently unknown. These GAAP charges, such as
potential asset impairment charges, are dependent upon future events and
valuations that have not yet been performed.

The following table presents a reconciliation of forecasted GAAP net income for
the twelve months ended  December 31, 2013  to adjusted EBITDA:

 Reconciliation Table - Forecasted Adjusted EBITDA                                                                  
 (Unaudited; in millions)                                                                                           
                                                                                                               
                                                               Forecast for Twelve Months                        
                                                               
Ending December 31, 2013                         
                                                               Low                           High              
                                                                                                               
                                                                                                               
   GAAP net income                                              $            440              $            490  
   Plus:                                                                                                       
             Interest expense                                  215                           215               
             Interest income                                   (1)                           (1)               
             Provision for income taxes                        185                           200               
             Depreciation (includes accelerated depreciation)  195                           195               
             Amortization                                      625                           630               
   EBITDA                                                       1,659                         1,729             
   Adjusted for:                                                                                                
             Global supply chain initiative                    6                             6                 
             Acquisition and licensing charges                 150                           150               
             Non-cash impairment charges                                                                       
             Non-recurring (gains) losses                                                                      
             Share-based compensation                          55                            55                
                                                                                                               
                                                                                                               
   Adjusted EBITDA                                              $         1,870               $         1,940   


The reconciliation table is based in part on management's estimate of adjusted
EBITDA for the year ended  December 31, 2013. Actavis expects certain known GAAP
charges for 2013, as presented in the schedule above. Other GAAP charges that
may be excluded from adjusted EBITDA are possible, but their amounts are
dependent on numerous factors that we currently cannot ascertain with sufficient
certainty or are presently unknown. These GAAP charges, such as potential asset
impairment charges, are dependent upon future events and valuations that have
not yet been performed.

CONTACTS:  
Investors:
Lisa DeFrancesco
(862) 261-7152



Media:
Charlie Mayr
(862) 261-8030

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SOURCE  Actavis, Inc.

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