Actavis consolidates UK market position with Auden McKenzie takeover
City Index June 3, 2015 10:36 PM
<p>Pharmaceutical company Actavis has become the UK’s number one supplier of generic pharmaceuticals following its acquisition of Auden McKenzie.</p>
Fast-growing pharmaceutical company Actavis has strengthened its position in the UK market through the acquisition of Auden Mckenzie Holdings Limited.
The £306 million cash deal includes a two-year royalty on a percentage of gross profits of one of Auden Mckenzie's products. The transaction will see Actavis become the number one supplier of generic pharmaceuticals in the UK, as well as giving it the number three position in terms of UK pharmaceutical suppliers.
Auden McKenzie is focused on the development, licensing and marketing of niche generic medicines and proprietary brands in the UK. Its portfolio includes 175 new generic and branded products, as well as a pipeline of approximately 40 additional products.
These will now be added to Actavis' existing range of more than 650 generic products in the UK, as well as its approximately 85 additional products under registration and development, allowing the company to deliver treatments across a broader spectrum of therapeutic areas.
Brent Saunders, chief executive officer and president of Actavis, said: "The acquisition of Auden Mckenzie is a strategic combination that makes Actavis the number one generic company in the UK and aligns with our strategy to establish a leading position in all of our markets, franchises and therapeutic categories."
The deal saw Actavis' share price increase from $306.71 on May 29th to $310 on June 1st, before peaking at 310.73 later that day. It has since eased to $305.47 in today's (June 3rd) trading.
Ambitious growth plans
This is the latest in a series of mergers and acquisitions by Actavis, which is looking to establish itself as one of the world's leading healthcare companies.
Having merged with Watson Pharmaceuticals in 2012, it agreed multibillion-dollar deals to purchase Warner Chilcott and Forest Laboratories, before completing a $66 billion merger with Allergan earlier this year.
It will mark a new chapter in its corporate history when it transitions the business to the Allergan brand name later this year.
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