Eagle Asset Management’s Ed Cowart, manager of the Nordea 1 – North American All Cap fund, has been boosted by recent healthcare takeover activity in the US.
After selling a stake in Mylan at the beginning of August, the Eagle team took a stake in global specialty pharmaceutical company Actavis when the stock was hovering close to $200 a share.
Actavis has since rallied strongly in recent months, particularly following its $66bn takeover of botox maker Allergan last month.
Cowart says the deal, which will take the combined entity’s market capitalisation to about $120bn, has “significant strategic value”.
“The addition of Allergan adds to Actavis therapeutic diversity, size and scale,” Cowart says.
“We are confident in Actavis management’s ability to successfully integrate Allergan because it has a successful track record of doing so with three large acquisitions in the last few years.
“We believe this deal should accelerate both revenue and earnings growth for Actavis and leave it with a compelling pipeline and exceptional cash flow.”