Actavis Acquires API Manufacturing Company In China
Actavis Group, the international generic pharmaceuticals company, recently announced that it has acquired a 90% share in Zhejiang Chiral Medicine Chemicals Company for an undisclosed amount.
Strategic Rationale
Chiral is specialized in research, development and production of active pharmaceutical ingredients (APIs). The acquisition is part of Actavis' strategy to get direct access to low cost API manufacturing.
Actavis has already established an API R&D centre in India with a pipeline of 70 products. This new acquisition together with Actavis' API manufacturing site in India will increase the Group's cost competitiveness as well as being of strategic importance for Actavis Group 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 major product lines.
About Zhejiang Chiral Medicine Chemicals Company
Founded in 2001, Chiral currently employs close to 200 employees in its API manufacturing plant, located in Hangzhou, China. Its products are currently sold to various pharmaceutical companies outside China.
About Actavis Group
Actavis is one of the world's leading generic pharmaceutical companies specializing in the development, manufacture and sale of generic pharmaceuticals. Based in Iceland, the company has operations in 40 countries, with 11,000 employees.
In addition to building up a strategic position in APIs, Actavis produces generic pharmaceuticals at 21 production sites in 13 countries, with an annual capacity of 24 bn tablets and capsules.
In China, Actavis operates a manufacturing site in Guangdong, which produces tablets, capsules, suspensions, solutions, creams and ointments.
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 its manufacturing costs and is an important extension of our activities in China. In addition, this further strengthens our backward integration, increasing our API manufacturing capacity."
SOURCE: Actavis Group