Aurobindo to acquire Actavis’s European generic units
Aurobindo’s European subsidiary is set to acquire Actavis’s commercial generic operations in seven Western European markets in a deal worth about €30 million ($40 million).
Hyderabad-headquartered Aurobindo has signed a binding offer to buy Actavis’s commercial pharmaceutical infrastructure – which includes products, marketing authorisations and dossier licence rights – in France, Italy, Spain, Portugal, Belgium, Germany and the Netherlands.
Under terms of the agreement, Actavis and Aurobindo will also enter into a long-term strategic supply arrangement.
The transaction will be completed pending antitrust approvals.
A statement by Aurobindo said that the agreement provides a “readymade hospital sales infrastructure” for the company to launch its own injectables and speciality portfolio in Western Europe.
It said that it was “well-positioned” to improve the profitability of both businesses by employing its existing European infrastructure and integrated large-scale India-based manufacturing operations.
Sigurdur Oli Olafsson, president of Actavis, 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.
“[It] 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.”
