Actavis buys generics firm for £306 million
pharmafile | January 26, 2015 | News story | Manufacturing and Production, Sales and Marketing | Actavis, Allergan, Auden McKenzie, generics
Actavis is buying UK-based development and marketing firm Auden McKenzie in a deal worth up to £306 million.
The move sees it adding around 175 new generic products, as well as a pipeline of over 40 additional goods to its own portfolio. AM’s assortment includes a wide range of molecules in various dosage forms for different therapy areas.
The acquisition will make Actavis one of the biggest suppliers of generic pharmaceuticals in the UK. Following on from last year’s huge $66 billion Allergan deal – expected during the second quarter of 2015 – it will hold the number three position in the supply of UK pharmaceuticals.
“AM is one of the leading pharmaceutical companies in the UK, and the opportunity to combine this profitable and growing company into the Actavis UK business demonstrates our commitment to invest in and expand strategically in our global generics business,” says Brent Saunders, who is the chief executive and president of Actavis.
Under the terms of the agreement the Irish-based pharma firm will pay an upfront cash payment, plus a two-year royalty on a percentage of gross profits. AM will be acquired on a debt-free basis and the transaction will exclude the UK firm’s property portfolio.
Amit Patel, who is the managing director of AM, comments: “We see in Actavis a company with the same entrepreneurial qualities. With its multinational resources and scope, Actavis will be able to achieve further growth based on AM’s existing products and pipeline of new products.”
AM was established in 2000 by Amit and Meeta Patel and reported a £52 million turnover in its annual accounts last year. The pair was also ranked number two in Management Today’s ‘Britain’s Top 100 Entrepreneurs 2014’ list.
Top of the supply chain
Shares in Actavis have more than doubled over the past year according to The Wall Street Journal, and the deal sees AM add to the Dublin-based firm’s pipeline products in antimotility, narcolepsy and in areas such as vitamin B12 deficiency.
“This strategic combination is highly synergistic with our UK business, is immediately and highly accretive and reflects our commitment to invest to achieve a top position in key international markets,” concludes Robert Stewart, who is the chief operating officer and incoming executive vice president of Actavis.
The acquisition is subject to certain conditions that include approval by regulatory authorities, but is expected to close in the first quarter of 2015.
Tom Robinson
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