Please login to the form below

Not currently logged in
Email:
Password:

Actavis sells EU generics businesses to Aurobindo

Divests operations in seven Western European countries

ActavisActavis is selling its generics business across seven Western European countries to Indian firm Aurobindo.

As part of the deal, Aurobindo will acquire all of Actavis' commercial infrastructure in France, Italy, Spain, Portugal, Belgium, Germany and the Netherlands.

Also included in the agreement are Actavis' existing products, staff and licence rights in those countries.

According to Actavis' president Sigurdur Oli Olafsson, the move is intended to allow the company to prioritise investment in emerging markets in Central and Eastern Europe and Southeast Asia.

It also frees Actavis from several loss-making markets for its business, despite estimated net sales of €320m for 2013.

Olafsson 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.”

The agreement expands Aurobindo's presence in Europe, which has been growing steadily in recent years.

The company was confident it was able to turn around the fortunes of the current loss-making Actavis businesses, claiming it "expects them to return to profitability in combination with [Aurobindo's] vertically integrated platform and existing commercial infrastructure".

This includes Aurobindo's sown injectable and speciality portfolio, which the company says will be strengthened by the addition of Actavis' readymade hospital sales infrastructure.

With this in mind, Aurobindo said it expects the acquired businesses to grow by 10 per cent year-on-year.

Contrary to a direction of travel that sees European firms aiming to expand by investing in markets in Asia and Latin America, India-based generics maker Aurobindo said its growth plans were firmly in the traditional European markets.

“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,” said V Muralidharan, SVP of European operations for Aurobindo.

“This transaction will complement our strategy of pursuing organic growth along with value-creating acquisitions within our served markets and adding complementary growth platforms to provide scale and revenue diversity,” he added.

Article by
Thomas Meek

21st January 2014

From: Sales

Share

Tags

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
Digitas Health

Digitas Health is the only digital-at-the-core brand agency designed to connect today's healthcare brands with today's healthcare consumers and professionals....

Latest intelligence

How do you solve a problem like non-adherence? Part 2
Following her previous piece on patient medical non-adherence, Head of Customer Experience Elisa del Galdo takes a look at the different patient personas that emerge during the diagnosis and treatment...
The patient will see you now
GCI Health’s Laura Starr and Chris Bath report on how the dawning era of mobile tech and the ‘Internet of Things’ has transformed the health and wellness arena....
When forecasters take the floor: 6 tips on presenting a forecast
Peter Mansell queries some of pharma’s leading forecasters for their dos and don’ts on presenting a forecast...

Infographics