Actelion: A booming start to the year
BUY, Fair Value CHF59 vs. CHF58 (+13%)
Actelion today reported very strong revenues and profits for the first quarter of 2013, driven by Tracleer (up 4% in local currencies) whose performance is somewhat boosted by exceptional and non-recurring items but also by a remarkable management of costs resulting in the end in an outstanding growth of core earnings by 44% to CHF168.5m. The bottom part of the P&L had nothing specific to report except a 14.8% tax rate, even lower than expected. Thus fully diluted EPS stands at CHF0.85 when consensus was expecting CHF0.60 and its higher-end CHF0.78. Although Actelion makes it clear that R&D and S&M expenses will increase over the year with phase III trials starting and the Opsumit launch and that Tracleer benefited from one-time positive items in Q1, the CFO also mentions that “it is possible that some of the forecasted profit growth for 2014 could be brought forward”.
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