ACTAVIS BUYS ALPHARMA'S GENERICS BUSINESS
Iceland-based drugmaker Actavis has taken another major step to expand its presence in the generics market, announcing recently that it plans to purchase Alpharma's U.S. and international generics businesses for roughly $810 million.
The deal, which is expected to close in December, would give Actavis control over Alpharma's broad range of solid-dose, liquid and topical dosage forms of generic pharmaceutical products, which generated nearly $455 million in revenues during the first half of 2005. Assuming the sale is approved, Actavis would become the fifth-largest generic company in the world in terms of annual revenue.
Alpharma's strong liquid product portfolio complements Actavis' strengths in oral solid-dose products and there is minimal overlap in both pipeline and portfolios for the U.S. market, Actavis said.
Once the sale is complete, the combined company would have more than 600 products on the market and 200 drugs in its development pipeline, Actavis said. Additionally, the combined company would be in position to file more than 30 abbreviated new drug applications (ANDAs) with the FDA in 2006, positioning Actavis among the leading companies in the U.S. in terms of pending ANDAs.
The Alpharma purchase is one of several major deals inked by Actavis this year. In May, the company announced plans to purchase privately held U.S. generics firm Amide Pharmaceutical for approximately $500 million. At the time of the purchase, Amide had roughly 70 approved products, 30 generic drugs in its pipeline and 12 ANDAs pending at the FDA. Actavis also recently purchased Higia, one of Bulgaria's largest pharmaceutical distributors, to help expand its presence in Europe.
Alpharma, meanwhile, is retaining ownership of its branded pharmaceuticals, active pharmaceutical ingredients and animal health businesses, as well as ParMed Pharmaceuticals, its U.S. pharmaceutical distribution business.