Hyderabad: Expanding its European footprint, city-based pharma player Aurobindo Pharma Limited on Saturday informed the bourses that it will be acquiring NYSE-Listed Actavis Plc's commercial operations in seven western European countries. However, the closing of the transaction was conditional and based on certain antitrust approvals and completion of employee consultation processes, it said.
Without disclosing the deal size, the company said, "Aurobindo expects to acquire personnel, commercial infrastructure, products, marketing authorizations and dossier license rights in seven European countries. Actavis and Aurobindo will be entering into a long-term commercial and supply arrangement in order to support the ongoing growth plans of these businesses."
According to the company, the acquisition would expand Aurobindo's front-end operations into five segments -- generics, prescription products, over-the-counter products, hospital products and generics tenders, with approximately 1,200 products and an additional pipeline of over 200 products.
Aurobindo said it estimated the net sales for the acquired businesses to be around 320 million euros in 2013 with a growth rate of over 10% year-on-year. "Although these businesses are currently loss-making, Aurobindo expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure," it said.
Commenting on the development, Aurobindo senior vice-president (European operations) V Muralidharan said, "We have been clear about our intention to focus on growth initiatives in Europe and international markets, which together are expected to be key drivers for future growth. This transaction will complement our strategy of pursuing organic growth along with value-creating acquisitions within our served markets and adding complimentary growth platforms to provide scale and revenue diversity."
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