INTERVIEW: Actavis Aims To Be Third-Biggest Generics Maker
25 Juin 2010 - 10:55AM
Dow Jones News
Icelandic generic drug maker Actavis aims to become the world's
third-largest manufacturer of copycat medicines via acquisitions,
Chief Executive Officer Claudio Albrecht told Dow Jones Newswires
in an interview.
"We want to move up to be the third-largest generic manufacturer
worldwide, and we can't achieve this goal without acquisitions and
partnerships," Albrecht said.
Albrecht was appointed as Actavis' new chief executive on
Wednesday, succeeding Sigurdur Oli Olafsson, who stepped down after
working for the company for seven years.
The company is currently in fourth place, with annual sales of
about EUR1.7 billion, Albrecht said. U.S. competitor Mylan Inc.
(MYL) is No. 3 with annual sales of $5.1 billion. Novartis AG's
(NVS) generic arm Sandoz is second with annual sales of $7.5
billion and Teva Pharmaceutical Industries Ltd. (TEVA) is the
biggest with annual sales of about $16.2 billion, including its
recent acquisition of Germany's Ratiopharm.
The market has long speculated that one acquisition possibility
for Actavis would be German generic drug maker Stada Arzneimittel
AG (SAZ.XE). Albrecht declined to comment on speculation regarding
Stada.
"To increase its market share this would of course be the right
move," said Ulrich Huwald, an analyst at M.M. Warburg. "Considering
Stada's 100% free-float, an attractive offer would make a takeover
a good possibility."
Stada's 2009 sales were EUR1.57 billion.
Since Actavis has billions of euros of debt with Deutsche Bank
AG (DB), the drug company's expansion ambitions are probably
supported by the bank. Neither Albrecht nor Deutsche Bank would
comment on whether the bank will become an actual shareholder in
Actavis. For now, the company has sufficient capital to expand,
Albrecht said.
"I wouldn't have taken this job if Actavis weren't on sound
financial footing," he added.
Further, Albrecht said he could imagine an initial public
offering of Actavis in three to five years.
No stranger to the business, Albrecht was previously chief
executive of Ratiopharm, where sales doubled during his tenure.
-By Eyk Henning, Dow Jones Newswires; +49 69 29725 108;
eyk.henning@dowjones.com