Pharmaceutical giant Actavis issued strong financial report for the fourth quarter of 2014. Revenues came in at $4.01 bn, up 44% y-o-y, beating consensus estimate of $3.91 bn. North American Brands revenues soared to $1.8 bn from $635.1 mn in the year-ago period, driven by the Forest Labs acquisition and the performance of legacy products. North American Generics revenues were $1.14 bn, up 10%, while International revenues declined 11.5% to $645 mn. Net revenues from the Anda Distribution segment increased 16% to $443.3 mn reflecting higher volumes and new launches. Adjusted EBITDA jumped 80% y-o-y to $1.5 bn, and EBITDA margin climbed 7.6 percentage points to 37%. Adjusted earnings per share rose 23% y-o-y to $3.91 almost matching analysts’ average forecast. Cash flow from operations for Q4 was $811.6 mn, up 24.5% y-o-y. In 2015, Actavis’ management expects earnings in the range of $16.30-17.30 per share (growth of 17-24%) on revenues of approximately $15 bn (growth of 17%). I look with optimism at the future prospects of Actavisc. I am positive on the Forest acquisition which is in line with the company’s strategy of building its branded product portfolio. Meanwhile, the Durata acquisition boosted Actavis’ infectious disease portfolio. The upcoming Allergan acquisition also looks good to me, I am encouraged by Actavis’ focus on building its branded and biosimilars pipeline. Notably, Actavis intends to adopt Allergan as its corporate name once the acquisition goes through. With target price of USD 310, Actavis’s shares, I believe, look nice for medium-term investment.