Actavis sells interest in China

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Actavis sells interest in China

Home/Pharma News | Posted 14/02/2014 0 Post your comment

US generic drugmaker Actavis has sold its interest in its Chinese subsidiary based in Foshan, Guangdong, to Zhejiang Chiral Medicine Chemicals. Actavis, the second biggest generic drugmaker by market capitalization, intends to continue further commercial operations in China in collaboration with its preferred business partners.

Actavis (Foshan) Pharmaceuticals specialized in the manufacture of antibiotics, gastrointestinal and cardiovascular drugs. ‘Our operations in Foshan were limited in scope and we believe that their value will be better capitalized on by Chiral, which will add manufacturing and marketing capabilities allowing them to expand their portfolio and strengthen their position in the Chinese market,’ said Mr Sigurdur Oli Olafsson, President, Actavis Pharma, in a statement from the company.

Actavis is focused on strengthening investment in high-growth markets where the company’s size and scale will enable them to maintain a competitive presence with the leading companies in the market, says Mr Olafsson.

Mr Paul Bisaro, Actavis Chief Executive Officer, told Bloomberg that China was not a ‘business friendly environment’, adding that it was ‘just too risky’.

Although Chinese authorities have not accused Actavis of corruption, Mr Bisaro has been quoted as saying he is not sure the company would get a fair hearing if that were to happen. GlaxoSmithKline was recently involved in a corruption scandal in China that wiped out two-thirds of its business in the country.

A few weeks before news of the divestment of its Chinese subsidiary, Actavis announced the sale of its generics commercial operations in seven markets in Western Europe (Belgium, France, Germany, Italy, Spain, Portugal and The Netherlands) to Aurobindo [1]. It is reportedly interested in Pfizer’s generics business, which is circled for a potential takeover bid [2]. Pfizer’s generics business had sales of US$10.2 billion in 2012.

References

1. GaBI Online - Generics and Biosimilars Initiative. Aurobindo to acquire seven generics businesses from Actavis [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Feb 14]. Available from: www.gabionline.net/Pharma-News/Aurobindo-to-acquire-seven-generics-businesses-from-Actavis

2. GaBI Online - Generics and Biosimilars Initiative. Pfizer’s generics business up for grabs [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Feb 14]. Available from: www.gabionline.net/Pharma-News/Pfizer-s-generics-business-up-for-grabs

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Source: Actavis