A prime example of “one man’s failure is another man’s success” was displayed for the world to follow today. Actavis (ACT) confirmed, after market close, April 1st, 2012, that the District Court of New Jersey had ruled the patent guarding AstraZeneca’s Asthma treatment drug, Pulmicort Respules, invalid. Upon this news, ACT was happily greeted by bullish investors. Actavis stock price quickly soared to a new 52 week high at today’s market open – ACT opened 5.1% above the previous day close of $92.46 per share. Shortly after open, ACT again hit another new 52 week high at $98.37 before leveling off in a range of $96.50 – $96.70. ACT eventually finished the day at $96.68, a 4.6% increase since the previous days close.
After initially losing a lawsuit last month that hindered the growth of the firm within the generic Asthma universe, ACT has now been given the right to sell the generic drug Pulmicort Respules. With a new outlook on the market, ACT is looking to try and reap all the benefits of the nearly $16.0B market. Actavis stated that new revenue attributable to Pulmicort amounted to $1.2B. On top of all this already spectacular news, Morgan Stanley has increased their target price to $101.00 per share along with an overweight rating. We expect to see much growth in both the near and long-term future of Actavis. We look forward to seeing their next quarter statements (TBA) and a possible increase in management guidance.