Actavis plc announced that it has acquired Silom Medical Company for an estimated $100 million in cash payment. Silom MC is a privately held generic pharmaceutical company in Thailand.
The company said the acquisition of Silom MC places it in a top-five position in the Thai generic pharmaceutical market. Actavis said it gains leading positions in the ophthalmic and respiratory therapeutic fields along with a strong cardiovascular franchise. The transaction will be immediately accredited to non-GAAP earnings for 2014.
Paul Bisaro, Chairman and CEO of Actavis, said, “The acquisition of Silom Medical demonstrates our commitment to be a leading specialty pharmaceutical company in Southeast Asia, and will provide the combined business with an even more significant and united presence in the fast-growing Thai pharmaceutical market. Silom Medical's diverse product portfolio and fully integrated platform, when combined with Actavis' current local commercial activities and world-class global generics infrastructure, will provide consumers in Thailand with expanded access to a combined, larger portfolio of affordable medicines and the increased opportunity to benefit from products in development for the market. The larger presence in Thailand will also create a foundation for Actavis' continued expansion across the Southeast Asian region.”
Through its local distributors in Thailand, Actavis currently markets about a dozen products in the country. The acquisition allows the company to use Silom Medical Company’s sales channels for existing products as well as potential new therapeutic categories including oncology, CNS, women’s health, and others. Silom Medical currently offers more than 25 products in various dosages to over 4,400 hospitals, pharmacies, and clinics throughout Thailand.
Thailand’s pharmaceutical market is valued at an estimated $4.3 billion and is forecasted for continued growth, according to Business Monitor International. Pharmaceutical sales in Thailand are expected to grow at approximately 8 percent annually and hit $9 billion by 2022.