Actavis' Buying Spree Continues With $460 Million Deal
January 26, 2015
By Mark Terry, BioSpace.com Breaking News Staff
Dublin-based Actavis plc announced today that it has finalized an acquisition of London-based Auden Mckenzie Holdings Limited for $460 million. In addition to the cash, there will be a two-year royalty on a percentage of gross profits of one of Auden Mckenzie’s products.
“Auden Mckenzie is one of the leading pharmaceutical companies in the UK,” said Actavis CEO and President Brent Saunders in a statement, “and the opportunity to combine this profitable and growing company into the Actavis UK business demonstrates our commitment to invest in and expand strategically in our global generics business.”
Actavis is a specialty pharmaceutical company that manufactures and markets generic and branded pharmaceutical products globally. It currently markets about 1,000 products in more than 60 countries.
Auden Mckenzie’s Pharma Division is privately owned pharma company focused on developing, licensing and marketing niche generic medicines in the UK and Europe. It currently holds over 70 products licenses.
On Oct. 6, 2014, Actavis announced a merger agreement with Chicago-based Durata Therapeutics, Inc. for about $675 million. Durata focuses on infectious disease treatments. Its key product is DALVANCE (dalbavancin), an injectable antibiotic for acute bacterial skin and skin structure infections (ABSSSI).
The Actavis acquisition of Auden Mckenzie will exclude Auden Mckenzie’s real estate portfolio. The deal will make Actavis the biggest supplier of generics in the UK, and the third largest supplier of pharmaceuticals.
“This strategic combination is highly synergistic with our UK business,” said Robert Stewart, chief operating officer of Actavis in a statement, “is immediately and highly accretive and reflects our commitment to invest to achieve a top position in key international markets.” Stewart will act as executive vice president of Actavis and president of generics and global operations after completion of the deal.
Actavis stock stock has been on a climb since Jan. 5, 2015, when it had a low share price of $255.17. It is currently selling for a high of $281.22. “Since its inception in 2000, Auden Mckenzie has established a notable position among the UK niche generic business by adopting a dynamic and entrepreneurial approach to developing and marketing generic medicines,” said Amit Patel, managing director of Auden Mckenzie in a statement. “We see in Actavis a company with the same entrepreneurial qualities. With its multinational resources and scope, Actavis will be able to achieve further growth based on Auden Mckenzie’s existing products and pipeline of new products.”
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