REYKJAVIK, ICELAND -- (MARKET WIRE) -- 04/09/08 -- Reykjavik, Iceland, 9 April 2008 --Actavis Group, the internationalgeneric pharmaceuticals company, today announced that it has acquireda 90% share in Zhejiang Chiral Medicine Chemicals Company for anundisclosed amount.
Strategic Rationale
Chiral is specialized in research, development and production ofactive pharmaceutical ingredients (APIs). The acquisition is part ofActavis' strategy to get direct access to low cost API manufacturing.
Actavis has already established an API R&D centre in India with apipeline of 70 products. This new acquisition together with Actavis'API manufacturing site in India will increase the Group's costcompetitiveness as well as being of strategic importance for ActavisGroup in selling APIs to other pharmaceutical companies.
There are substantial synergies between Chiral's and Actavis'portfolios which will result in significant cost reduction of majorproduct lines.
About Zhejiang Chiral Medicine Chemicals Company
Founded in 2001, Chiral currently employs close to 200 employees inits API manufacturing plant, located in Hangzhou, China. Its productsare currently sold to various pharmaceutical companies outsideChina.
About Actavis Group
Actavis is one of the world's leading generic pharmaceuticalcompanies specializing in the development, manufacture and sale ofgeneric pharmaceuticals. Based in Iceland, the company hasoperations in 40 countries, with 11,000 employees.
In addition to building up a strategic position in APIs, Actavisproduces generic pharmaceuticals at 21 production sites in 13countries, with an annual capacity of 24 bn tablets and capsules.
In China, Actavis operates a manufacturing site in Guangdong, whichproduces tablets, capsules, suspensions, solutions, creams andointments.
After this acquisition Actavis employs close to 500 people in China.
Commenting, Robert Wessman, CEO and President of Actavis said:
"This new facility will enable Actavis to further reduce itsmanufacturing costs and is an important extension of our activitiesin China. In addition, this further strengthens our backwardintegration, increasing our API manufacturing capacity."
EnquiriesActavis GroupHjördís ÁrnadóttirDirector, External CommunicationsTel: (+354) 535 2300 / 840 7476E-mail: harnadottir@actavis.com
Any statements contained in this press release that refer to Actavis'estimated or anticipated future results or future activities areforward-looking statements which reflect the Company's currentanalysis of existing trends, information and plans. Theseforward-looking statements are subject to a number of risks anduncertainties that could cause actual results to differ materiallydepending on factors such as the availability of resources, thetiming and effect of regulatory actions, the success of new products,the strength of competition, the success of research and developmentissues, unexpected contract breaches or terminations, exposure toproduct liability and other lawsuits, the effect of currencyfluctuations and other factors.
Copyright © Hugin AS 2008. All rights reserved.
