Aurobindo Pharma Ltd has signed a binding agreement to acquire Actavis Plc’s commercial operations in seven Western European countries. Closing of the transaction is conditional on certain antitrust approvals and completion of employee consultation processes.
Aurobindo Pharma expects to acquire personnel, commercial infrastructure, products, marketing authorisations and dossier license rights in seven European countries. Actavis and Aurobindo will be entering into a long term commercial and supply arrangement in order to support the ongoing growth plans of these businesses. The acquisition expands Aurobindo Pharma’s front-end operations into five segments (generics, prescription products, over-the-counter products, hospital products and generics tenders) with approximately 1200 products and an additional pipeline of over 200 products.
Management estimates the net sales for the acquired businesses would be around Euro 320 million in 2013 with a growth rate of over 10% year-on-year. Although these businesses are currently loss-making, Aurobindo Pharma expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure. The acquisition will make Aurobindo Pharma one of the leading Indian pharmaceutical companies in Europe. Since 2006, the company has been steadily expanding its European footprint through an increasing presence in UK, Spain and Germany. The acquisition will enable Aurobindo Pharma to achieve critical mass in Western Europe with a top 10 position in several key markets.
V Muralidharan, SVP of European Operations, Aurobindo Pharma, said, “The acquisition of these European businesses is a value enhancing and forward-looking initiative for Aurobindo. We have been clear about our intention to focus on growth initiatives in Europe and international markets, which together are expected to be key drivers for future growth. This transaction will complement our strategy of pursuing organic growth along with value-creating acquisitions within our served markets and adding complimentary growth platforms to provide scale and revenue diversity”.
Arvind Vasudeva, CEO - Formulations Business, Aurobindo Pharma, stated, “We have carefully reviewed the Actavis European operations and concluded that with our cost competitiveness and group structure, we could significantly capitalise Actavis’s strong market position in these Western European countries and improve profitability, thereby accelerating our strategy of becoming a significant Gx player in Europe. Aurobindo takes a disciplined approach to acquisition with clearly defined strategic and financial criteria and is committed to maintaining a prudential capital and debt structure.”
Sigurdur Oli Olafsson, President, Actavis Pharma, said, “We believe that the value created by the commercial operations in these seven markets will be better maximised by Aurobindo, which will gain scale, additional products and enhanced competitive market share position as a result of this transaction. This transaction will permit Actavis to focus management time and resources to support accelerated investment in driving faster growth of other markets, including Central and Eastern Europe and Southeast Asia.”
Aurobindo Pharma expects to acquire personnel, commercial infrastructure, products, marketing authorisations and dossier license rights in seven European countries. Actavis and Aurobindo will be entering into a long term commercial and supply arrangement in order to support the ongoing growth plans of these businesses. The acquisition expands Aurobindo Pharma’s front-end operations into five segments (generics, prescription products, over-the-counter products, hospital products and generics tenders) with approximately 1200 products and an additional pipeline of over 200 products.
Management estimates the net sales for the acquired businesses would be around Euro 320 million in 2013 with a growth rate of over 10% year-on-year. Although these businesses are currently loss-making, Aurobindo Pharma expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure. The acquisition will make Aurobindo Pharma one of the leading Indian pharmaceutical companies in Europe. Since 2006, the company has been steadily expanding its European footprint through an increasing presence in UK, Spain and Germany. The acquisition will enable Aurobindo Pharma to achieve critical mass in Western Europe with a top 10 position in several key markets.
More From This Section
V Muralidharan, SVP of European Operations, Aurobindo Pharma, said, “The acquisition of these European businesses is a value enhancing and forward-looking initiative for Aurobindo. We have been clear about our intention to focus on growth initiatives in Europe and international markets, which together are expected to be key drivers for future growth. This transaction will complement our strategy of pursuing organic growth along with value-creating acquisitions within our served markets and adding complimentary growth platforms to provide scale and revenue diversity”.
Arvind Vasudeva, CEO - Formulations Business, Aurobindo Pharma, stated, “We have carefully reviewed the Actavis European operations and concluded that with our cost competitiveness and group structure, we could significantly capitalise Actavis’s strong market position in these Western European countries and improve profitability, thereby accelerating our strategy of becoming a significant Gx player in Europe. Aurobindo takes a disciplined approach to acquisition with clearly defined strategic and financial criteria and is committed to maintaining a prudential capital and debt structure.”
Sigurdur Oli Olafsson, President, Actavis Pharma, said, “We believe that the value created by the commercial operations in these seven markets will be better maximised by Aurobindo, which will gain scale, additional products and enhanced competitive market share position as a result of this transaction. This transaction will permit Actavis to focus management time and resources to support accelerated investment in driving faster growth of other markets, including Central and Eastern Europe and Southeast Asia.”