An overview of Chilton's 3Q14 positions (Part 2 of 11)
Chilton Investment Company and Actavis
Chilton added new positions in Actavis Plc (ACT), Medtronic Inc. (MDT), Wynn Resorts Ltd. (WYNN), and Priceline Group Inc. (PCLN). It sold stakes in Occidental Petroleum (OXY). The fund increased positions in TransDigm Group Inc. (TDG), Home Depot Inc. (HD), and McDonald’s Corp. (MCD). The fund lowered its positions in Dollar General (DG) and Walmart (WMT).
Chilton Investment Company initiated a new position in ACT. It accounts for 2.24% of the fund’s third quarter US long portfolio.
About Actavis
ACT is a global, integrated specialty pharmaceutical company. It’s focused on developing, manufacturing, and distributing generic, brand, and biosimilar products. ACT’s global headquarters are located in Dublin, Ireland. Its US administrative headquarters are located in Parsippany, New Jersey.
ACT will acquire Allergan
On November 17, 2014, ACT reported that it will acquire Allergan. It will acquire Allergan for a combination of $129.22 in cash and 0.3683 Actavis shares for each share of Allergan’s common stock. The transaction is valued at ~$66 billion, or $219 per Allergan share. This acquisition will create one of the top ten global pharmaceutical companies—by sales revenue. In 2015, it’s expected to have combined annual pro-forma revenues of more than $23 billion. The transaction was unanimously approved by both companies’ boards and management teams.
Robust earnings and YoY growth
Net revenue increased 83% to $3.7 billion in 3Q14—compared to $2 billion in 3Q13. On a non-generally accepted accounting principles, or GAAP, basis, diluted earnings per share, or EPS, for 3Q14 increased to $3.19 per share—compared to $2.09 per diluted share in 3Q13. The strong performance was due to the acquisitions of Warner Chilcott and Forest. It was also due to the continued strong performance of US generics, international businesses, and Anda Distribution.
At the end of the third quarter, ACT completed its tender offer to purchase all of Durata Therapeutics’ outstanding shares. Durata Therapeutics is an innovative pharmaceutical company. It focuses on the development and commercialization of novel therapeutics for patients with infectious diseases and acute illnesses.
The next part of this series will discuss Chilton’s new position in MDT.
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