Refer to the attached reconciliation tables for adjustments to GAAP earnings.
Actavis presents its operating results in two revenue-producing segments: Actavis Pharma and Anda Distribution. The Actavis Pharma segment includes all branded, branded generic, generic and over-the-counter pharmaceutical products. The Anda Distribution segment includes revenue from the distribution of third-party products primarily to independent pharmacies, pharmacy chains and pharmacy buying groups.
Adjusted gross margin as a percentage of adjusted net revenues within Actavis Pharma increased to 64.8 percent in the second quarter of 2014 from 53.9 percent in the second quarter of 2013, primarily as a result of the acquisition of Warner Chilcott in the fourth quarter of 2013. Adjusted gross margin excludes results from our divested Western European operations.
Anda Distribution segment gross margin was 12.3 percent in the second quarter of 2014 compared to 13.4 percent in the prior year period. The decrease in Anda Distribution segment gross margin was primarily due to product and customer mix in the second quarter of 2014 compared to the second quarter of 2013.
Actavis’ estimates include the Forest Laboratories business. Estimates are based on actual results for the first six months of 2014 and management’s current belief about prescription trends, pricing levels, inventory levels and the anticipated timing of future product launches and events.
Actavis estimates the following for the second half of 2014:
Actavis’ full year 2015 estimates are based on management’s current belief about prescription trends, pricing levels, inventory levels and the anticipated timing of future product launches and events.
Actavis markets a broad portfolio of branded and generic pharmaceuticals and develops innovative medicines for patients suffering from diseases principally in the central nervous system, gastroenterology, women’s health, urology, cardiovascular, respiratory and anti-infective therapeutic categories. The Company is an industry leader in product research and development, with one of the broadest brand development pipelines in the pharmaceutical industry, and a leading position in the submission of generic product applications. Actavis has commercial operations in more than 60 countries and operates more than 30 manufacturing and distribution facilities around the world.
A complete reconciliation from GAAP financials to non-GAAP financials for the second quarter and first six months of 2014 will be available on the Actavis Investor Relations website (ir.actavis.com) under the “Financial Information” and “Quarterly Results” subheadings.
SOURCE Actavis plc