Actavis enters US generics market

Actavis Group, an international generic pharmaceuticals company, and Amide Pharmaceutical, a privately owned US generic pharmaceuticals company, have reached an agreement whereby Actavis will acquire Amide for an initial US$500m in cash with up to an additional US$100m payable over two years subject to performance

Upon closing the acquired company is expected to have a cash balance of approximately US$40m. The deal brings together two premier generics companies with complementary strengths in Europe and the US and represents a significant milestone in Actavis' plans to become one of the leading global companies within the sector.

The combination of Actavis' brand and product development strength and geographic coverage in Europe with Amide's strategically important foothold in the US market is expected to generate significant opportunities to drive revenue growth, margin enhancement and create further value for the enlarged Group.

Actavis will achieve a strong presence in the US generic pharmaceuticals market, which would represent 18% of combined 2004 sales on a pro forma basis. The acquisition provides Actavis with a platform from which to launch future products into the US, the world's largest generic pharmaceuticals market

The enlarged group will benefit from products that have been identified in Amide's portfolio that can be marketed in Actavis' existing markets. Actavis will gain access to Amide's best in-class product development and regulatory capabilities in the US as well as its broad experience in marketing and distribution Actavis will acquire increased production capacity through Amide's FDA approved manufacturing facilities and new plant, expected to be completed in 2006.

The enlarged Group will have one of the broadest portfolios in the generics sector with over 500 products on the market and minimal overlap between the respective products, and has 136 products in its in-house development and is expected to file at least 15 Abbreviated New Drug Applications (ANDAs) in 2005.

Commenting on the acquisition, Robert Wessman, president and ceo of Actavis, said:

'This transaction is a significant step in our strategy to build one of the world's leading generic pharmaceutical companies. Amide is a highly profitable company with a broad range of marketed products, a strong product pipeline and an excellent management team and workforce. It is well positioned in the key US market and will provide the critical mass for Actavis to enter the US with its own products. The transaction brings considerable product and marketing synergies and positions us well to take advantage of further opportunities in the rapidly expanding generic pharmaceuticals market.'

Divya C Patel, President of Amide, added: 'We are extremely enthusiastic about the mutual benefits to be gained from this transaction. There is an excellent strategic fit between the two companies and it provides Amide with the ability to leverage its market position as well as expand its product portfolio in the coming years. Furthermore, Actavis gains a significant platform to extend its current product offerings into Amide's US distribution channels. We look forward to joining the Actavis Group.'