Aurobindo Pharma to acquire Actavis’s European operations

Aurobindo Pharma Limited has agreed to acquire the generics commercial operations of Actavis Plc in seven markets across Western Europe for around €30 million. 

The transaction, however, is conditional on certain antitrust approvals and completion of employee consultation processes, Actavis said.

Aurobindo would acquire Actavis' pharmaceutical commercial infrastructure in France, Italy, Spain, Portugal, Belgium, Germany and the Netherlands, including products, marketing authorisations and dossier license rights. The two companies would also enter into a long-term strategic supply arrangement.

''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,'' V Muralidharan, senior vice president of European operations for Aurobindo, 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," said Sigurdur Oli Olafsson, president, Actavis Pharma. 

"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."

Until the transaction is completed, Actavis will continue to operate the commercial businesses in a business-as-usual mode, providing full support to manage the business, introduce new products and maximize its partnership with customers. The companies said in a joint statement.

Rothschild and Latham & Watkins acted as sole financial adviser and legal counsel to Actavis, respectively.  Jefferies International Limited acted as sole financial advisor and Herbert Smith Freehills LLP acted as legal counsel to Aurobindo.

Actavis is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products.  Actavis has global headquarters in Dublin, Ireland and administrative headquarters in Parsippany, New Jersey, US.

The company markets generic, branded generic, legacy brands and over-the-counter (OTC) products in more than 60 countries, and operates a global branded specialty pharmaceutical business focused in the women's health, urology, gastroenterology and dermatology therapeutic categories.  Actavis also has a portfolio of five biosimilar products in development in women's health and oncology.  It has more than 30 manufacturing and distribution facilities around the world, including US pharma product distributer Anda Inc.

Hyderabad-based Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa and ANVISA Brazil.

The company's robust product portfolio is spread over six major therapeutic / product areas that include antibiotics, anti-retrovirals, CVS, CNS, gastroenterologicals, and anti-allergics, supported by an outstanding R&D set-up.

The company markets these products globally, in over 125 countries.

Aurobindo Europe represents a significant segment within the group's global presence.

Since launching its European commercial operations in 2006 with the acquisition of Milpharm in the UK and Pharmacin in the Netherlands in 2007,  Aurobindo has further expanded its footprint in continental Europe by commencing operations in several territories including Italy, Spain, Portugal, Romania, Malta and Germany.

Aurobindo's state-of-the-art EU release lab and captive warehouse in Malta serves as a logistics centre for its European operations.