Actavis to acquire UK generics firm Auden Mckenzie
Tuesday, January 27, 2015
Ireland-headquartered generic major Actavis (NYSE: ACT) said today that it has reached agreement to acquire UK-based Auden Mckenzie, a dynamic and fast growing company focused on the development, licensing and marketing of niche generic medicines and proprietary brands in the UK.
Actavis will acquire Auden Mckenzie for around £306 million ($460 million) in cash, plus a two-year royalty on a percentage of gross profits of one of Auden Mckenzie's products. The company will be acquired on a debt free basis, and the transaction will exclude Auden Mckenzie's real estate portfolio.
Combined company will be number one generics supplier in UK
The acquisition will make Actavis the number one supplier of generic pharmaceuticals in the UK. Following the close of the acquisition, and the anticipated combination of Actavis and Allergan later this year, Actavis will hold the number three position in the supply of UK pharmaceuticals. The acquisition is expected to be immediately accretive to Actavis' non-GAAP (generally accepted accounting principles) earnings in 2015, and to complete in the first quarter of this year.
Actavis’ rapid growth, with more than $100 billion in mergers and acquisitions in little more than a year, was capped by the $66 billion deal for Allergan.
Actavis currently markets more than 650 generic products in the UK, and has around 85 additional products under registration and development. The combination with Auden Mckenzie is anticipated to add about 175 new generic and branded products, as well as a pipeline of some 40 additional products, in various dosage forms, for treatments across a broad spectrum of therapeutic areas. The acquisition is subject to certain conditions, including approval by regulatory authorities, and is expected to close in the first quarter of 2015.
"Auden Mckenzie is one of the leading pharmaceutical companies in the UK, and the opportunity to combine this profitable and growing company into the Actavis UK business demonstrates our commitment to invest in and expand strategically in our global generics business," said Brent Saunders, chief executive and president of Actavis.
"Since its inception in 2000, Auden Mckenzie has established a notable position among the UK niche generic businesses by adopting a dynamic and entrepreneurial approach to developing and marketing generic medicines," said Amit Patel, managing director of Auden Mckenzie, adding: "We see in Actavis a company with the same entrepreneurial qualities. With its multinational resources and scope, Actavis will be able to achieve further growth based on Auden Mckenzie's existing products and pipeline of new products."
http://www.thepharmaletter.com/
