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$
,388.7$
,161.4$
4,385.2$
3,320.2Other revenue
25.410.960.947.0Net revenue
1,414.11,172.34,446.13,367.2Operating expenses:Cost of sales
809.3652.02,428.41,817.8Research and development
90.460.3255.6227.7Selling and marketing
129.142.5281.2156.0Segment contribution
$
385.3$
417.5$
,480.9$
,165.7Segment margin
27.2%35.6%33.3%34.6%Adjusted gross profit (1)
$
.4$
513.7$
2,067.1$
,551.2Adjusted gross margin
46.7%43.8%46.6%46.2%(1)Adjusted gross profit represents adjusted net revenue less adjusted cost of sales and excludes amortization of acquired intangibles. Pro forma adjustments for the respective periods include the following: Settlement of contingent asset acquired as part of a
business acquisition (other revenue)
$
-$
-$
-$
(7.4)Net revenue from payment received relating to
previously divested business
--(10.9)$
(2.4)Operational Excellence Initiative
8.91.213.69.4Acquisition accounting adjustments
46.7(7.8)46.72.2Actavis Pharma net revenue for the fourth quarter 2012 increased 21 percent to $1.4 billion primarily as a result of the inclusion of legacy Actavis as of November 1, 2012, and increased sales related to new products in key markets including generic versions of Lovenox®, Xopenex® and Adderall XR® in the U.S. This partially offset lower U.S. sales of the generic versions of Lipitor® and Toprol XL®. Fourth quarter international net revenue was $524.7 million, up 245 percent from the fourth quarter 2011, primarily as a result of the inclusion of legacy Actavis results.
Actavis Pharma R&D investment for the fourth quarter 2012 increased 50 percent to $90.4 milli
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