Actavis to acquire specialty drugmaker Forest Labs

Home/Pharma News | Posted 07/03/2014 post-comment0 Post your comment

US-based generic drugmaker Actavis is set to grow even bigger, with the acquisition of US-based Forest Laboratories (Forest Labs), according to an announcement by the companies on 18 February 2014.

Teamwork original

Actavis will acquire Forest Labs for a combination of cash and equity in a deal set to be worth around US$25 billion. The deal will give Actavis access to higher margin, brand-name treatments for Alzheimer’s disease, hypertension and other disorders and fits well into the group’s strategy of buying specialty drugmakers to add to its portfolio of generics.

The combination of the two companies will ‘create an innovative new model in specialty pharmaceuticals leadership, with size and scale, a balanced offering of strong brands and generics, a focus on strategic, lower-risk drug development, and – most important – the ability to drive sustainable organic growth’, according to Chairman and CEO of Actavis, Mr Paul Bisaro.

Actavis and Forest Labs expect the combination to yield as much as US$1 billion in synergies and a double-digit boost to non-GAAP (generally accepted accounting principles) earnings in 2015 and 2016. While operating and tax synergies are estimated to be approximately US$1 billion, without taking into account any manufacturing or revenue synergies. The companies have also anticipated continuing to invest over US$1 billion per year in R & D.

Actavis already increased its brand-name presence when it acquired specialty drugmaker Warner Chilcott in 2013 [1]. The company has also been the subject of takeover bids, with offers from Mylan and Valeant Pharmaceuticals International and pharma giant Novartis all hitting the news.

Related articles

Actavis sells interest in China

Actavis confirms Rayos patent challenge and Warner Chilcott acquisition

Reference

1.   GaBI Online - Generics and Biosimilars Initiative. Actavis makes definitive agreement with Warner Chilcott [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Mar 7]. Available from: www.gabionline.net/Pharma-News/Actavis-makes-definitive-agreement-with-Warner-Chilcott

Permission granted to reproduce for personal and non-commercial use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.

Copyright – Unless otherwise stated all contents of this website are © 2014 Pro Pharma Communications International. All Rights Reserved.

Source: Actavis, Forest

comment icon Comments (0)
Post your comment
Most viewed articles
About GaBI
Home/About GaBI Posted 06/08/2009
EU guidelines for biosimilars
EMA logo 1 V13C15
Home/Guidelines Posted 08/10/2010