The Hindu, February February 14, 2007
Enters into service pact
CHENNAI: Iceland-headquartered euro 1.4 billion Actavis, a well-known generic pharmaceutical company, has acquired the API (active pharmaceutical ingredient) division of the Chennai-based Sanmar Specialty Chemicals Ltd (SSCL), a subsidiary of the Sanmar Group, for an undisclosed sum. The API facility is located at Alathur, near here.
The facility supplies active pharmaceutical ingredients to global pharmaceutical companies, mostly in Europe and the U.S. Capable of undertaking complex reactions the division currently manufactures 15 products and employs abut 70 people.
FDA approved facility
The acquisition of the API division of SSCL provides Actavis with a wholly owned FDA (Food and Drug Administration)-approved facility. It also gives Actavis the ability to develop and manufacture its own APIs, the single largest cost component in the group's manufacturing.
"With the acquisition, Actavis has captured the entire value chain and the division will strongly complement the group's existing manufacturing capabilities in India," said a release from Actavis.
As part of its latest acquisition in India, Actavis has entered into a service agreement with SSCL to provide Actavis with API R&D services at SSCL's research facilities. This is in addition to the wholly owned API development centre set up by Actavis in Bangalore, which is already in operation. The group now has a total of 30 API projects under development in India.
Addressing a press conference here on Tuesday, Rober Wessman, Global CEO, said Actavis would continue the ongoing third party business of the Alathur API unit and increase its sales. It would further grow the business relationship with current and new clients, he added.
Mr. Wessman said 40 per cent of the total cost for the group comprised materials and API. "We will see good savings in the acquisition of the Sanmar unit," he said. The CEO indicated that Actavis would expand the capacity at all its units in India. It would continue to work with Indian companies such as Orchid and Shasun with whom it had ongoing relationship. Actavis had so far invested about Euro 50-60 million in India.Mr. Wessman said Actavis was hoping ship four billion tablets from India two years hence. Currently, the company was selling 17 billion tablets, he said. Actavis now has over 620 people employed in India, with operations in Chennai, Bangalore and Hyderabad.