NEW YORK ( TheDeal) -- Actavis Inc.'s $8.5 billion deal for specialty pharmaceutical company Warner Chilcott plc will serve to enhance the New Jersey drugmaker's revenue mix and balance sheet, and heighten its profile for future dealmaking, executives said on a conference call Monday.
Actavis added 2.3% on Tuesday to $130.08 while Warner jumped 3.8% to $20.34.
"It augments our specialty brand business in our core therapeutic market categories of women's health and urology, as well as expanding into the gastrointestinal sectors, new therapeutic qualities for us," Actavis CEO and president Paul Bisaro said on a conference call on Monday. "The combined company is going to be in the top 20 of global pharmaceutical companies in terms of sales with a substantial presence in both generics and brand products."
Before the deal, about 7% of Actavis' revenue came from branded specialty products; it mostly focused on generic drugs. Post-deal, about 25% of revenue will come from specialty products, according to comments on the call.Higher revenue means increased cash flow and more access to financing for deals, Bisaro noted. "
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