Lower 4th-qtr 2012 profits at Actavis but beat expectations

US generics major Actavis (NYSE: ACT, the new name for the Watson business) reported net revenue increased 13% to $1.75 billion for the fourth quarter 2012, compared to $1.54 billion in the fourth quarter 2011, slightly higher than analysts’ expectations of $1.74 billion. On a non-GAAP basis, diluted earnings per share for the fourth quarter 2012 was $1.59, compared to $1.77 per diluted share in the fourth quarter 2011, a decline of 10%, but still beat the forecasts of $1.53 of 20 analysts polled by Thomson Reuters.

GAAP earnings per diluted share for the fourth quarter 2012 were $0.21, compared to $0.75 in the prior year period. Fourth quarter 2011 earnings includes the launch of generic Lipitor (atorvastatin) which contributed $0.64 of non-GAAP earnings per diluted share to the prior-year period compared to $0.03 in the fourth quarter of 2012. For the fourth quarter 2012, adjusted EBITDA was $393.0 million, compared to $393.4 million for the fourth quarter 2011. Cash and marketable securities were $328.0 million as of December 31, 2012.

Full year revenues rise 29%