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Actavis Group, the international generic pharmaceuticals company announced that it has agreed to acquire the human generics business of the US listed pharmaceutical company, Alpharma Inc. for a total consideration of US$810 million in cash.
The deal brings together two premier generic pharmaceutical businesses with complementary strengths in Europe and the US and represents a significant milestone in Actavis' goal to become one of the leading global companies within the sector. Following the acquisition Actavis will be among the five largest companies in generic pharmaceuticals worldwide, in terms of revenue. The enlarged Group will have around 10,000 employees in 32 countries.
Completion of the acquisition is expected to take place in December 2005. The acquisition is subject to the regulatory approval of the US competition authorities. The enlarged Group will have over 200 products in its development pipeline and in registration and is expected to file over 30 Abbreviated New Drug Applications (ANDAs) in 2006, positioning the Group among the leading companies in the US in terms of pending ANDAs. Actavis will acquire additional US Food and Drug Administration (FDA) approved production capacity in the US in addition to European approved (EU-GMP) plants in the UK, Norway, and Indonesia.
Actavis expects sales to amount to approximately EUR1.3 billion in 2006. The EBITDA margin for the enlarged Group is expected to be around 19 - 20% in year 2006. Actavis has secured EUR1,413 million (US$1,695 million) in financing for the acquisition and refinancing of the majority of existing debt. The financing comprises a EUR808 million (US$970 million) Term Loan Facility, a EUR250 million (US$300 million) Revolving Credit Facility and the placement of EUR354 million (US$425 million) equivalent in Preferred Shares.
Actavis will gain a local presence for its own-label products in the largest European pharmaceutical markets - Germany and the UK - as well as enhancing its position in Scandinavia, the Netherlands, Portugal, and other European countries. Actavis will also gain access to the marketing and distribution network of Alpharma in 11 countries.
The enlarged Group will have one of the broadest portfolios in the generics sector with over 600 products on the market. Alpharma's strong liquid product portfolio complements Actavis' strengths in oral solid-dose products and there is minimal overlap in both pipeline and portfolios for the US market.
Commenting on the acquisition, Mr Robert Wessman, President and CEO of Actavis, said:
"This transaction puts Actavis into a top-tier position in the generics pharmaceutical industry worldwide. Driven by a broad range of marketed products, strong pipeline and manufacturing capabilities, the acquisition of Alpharma will substantially strengthen our position in the US market. It will enhance our presence in key European markets and provides access for our own-label products, as well. This transaction brings together vast marketing, production and puts us into prime positions us well to take advantage of further opportunities in the rapidly expanding generic pharmaceuticals market."
Actavis operates a production plant in Malta with a capacity for research and development. |
