Aurobindo to buy Actavis’ operations in 7 EU nations
Aurobindo Pharma Ltd will acquire the commercial operations of Actavis Plc in seven Western European countries for €30 million.
The Hyderabad-based company has signed an agreement in this regard, according to an announcement made here on Saturday.
Although these businesses are currently loss-making, Aurobindo expects them to return to profitability with its own strengths and existing commercial infrastructure.
Key drivers
Commenting on the transaction, V. Muralidharan, Senior Vice-President of European Operations for Aurobindo, said: “We have been clear about our intention to focus on growth initiatives in Europe and international markets, which together are expected to be the key drivers for future growth. This transaction will complement our strategy of pursuing organic growth along with value-creating acquisitions.’’
The acquisition is expected to complement Aurobindo’s European operations, adding capabilities in France, Italy, Spain, Portugal, Germany, the Netherlands and Belgium, and brands such as ‘Arrow Generiques’.
The buy will make Aurobindo a leading Indian pharma company in Europe and also provide readymade hospital sales infrastructure to launch its own injectable and speciality portfolio. It will expand Aurobindo’s operations into five segments (generics, prescription products, over-the-counter products, hospital products and generics tenders) with approximately 1,200 products and an additional pipeline of over 200 items.
Long-term pact
The company expects to acquire personnel, commercial infrastructure, products, marketing authorisations and dossier licence rights associated with the Dublin-based Actavis. It will enter a long-term commercial and supply arrangement to support the ongoing growth plans of these businesses. The net sales for the acquired businesses are pegged at around €320 million in 2013, with a growth rate of over 10 per cent year-on-year.
Sigurdur Oli Olafsson, President of Actavis Pharma, said the transaction would allow Actavis to focus management time and resources on driving growth in other markets, including Central and Eastern Europe and South-East Asia.
In the domestic market, Aurobindo acquired Hyacinths Pharma Pvt Ltd, which produces active pharmaceutical ingredients, last September. By picking a 25 per cent stake in Silicon Life Sciences Pvt Ltd, it turned a joint venture with Trident Chemphar Ltd into a wholly-owned subsidiary.
