Actavis Group (ICEX: ACT), the international generic pharmaceuticals company, announces today that the acquisition of Amide Pharmaceuticals, Inc., a privately owned US generic pharmaceuticals company, in New Jersey, has been completed. Following receipt of approval from the competition authorities in the US under the Hart- Scott Rodino Act, Actavis has now received all regulatory approvals necessary to complete the acquisition.
As previously disclosed, Actavis has acquired Amide for an initial gross consideration of US$500 million in cash, with up to an additional US$100 million payable over two years subject to performance.
The acquisition of Amide provides Actavis with a strong presence in the US generic pharmaceuticals market and a platform from which to launch future products in the US. The enlarged Group will have one of the broadest portfolios in the generics sector with over 500 products on the market. The combination of Actavis' brand and product development strength and geographic coverage in Europe with Amide's strategically important foothold in the US market is also expected to generate significant opportunities to drive revenue growth, margin enhancement and create further value for the enlarged Group.
The Actavis Group was founded in 1956. Actavis is an international pharmaceutical company, specialising in the development, manufacture and sale of high quality generic pharmaceuticals. The Group has also established itself as a reliable supplier of pharmaceutical intellectual property.
Headquartered in Iceland, Actavis has operations in 28 countries with around 7000 employees with development and manufacturing facilities in Iceland, Bulgaria, Turkey, Malta, Serbia and a newly acquired plant in the US. Actavis has an extensive worldwide sales network. The Group has built a strong market position in Europe and is constantly looking to establish itself in new markets. The quality of its intellectual property has resulted in Actavis and its customers being first to market with generic products when patents expire.
Founded in 1983 in New Jersey, USA, Amide develops, manufactures and sells a broad range of solid-dose generic pharmaceutical products with a portfolio of 67 marketed products in tablet and capsule forms. The company also has a strong development pipeline of 30 products and 12 ANDAs pending approval with the FDA. Furthermore, Amide expects to have 10 new product approvals in 2005. Amide employs over 200 people and its primary New Jersey facility is currently capable of manufacturing 1.5 billion tablets and capsules per annum. Furthermore, a new plant is being built in New Jersey, which will increase manufacturing capacity to 6-8 billion tablets per annum. In the year ended 31 December 2004, Amide generated revenues of US$106.7 million, with earnings before interest, tax, depreciation and amortization ("EBITDA") of US$53.2 million. Profit before tax was US$52.5 million.
Forward looking statements
This press release contains forward-looking statements with respect to the financial condition, results of operations and businesses of Actavis. By their nature, forward-looking statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from that expressed or implied by these forward-looking statements. These factors include, among other things, exchange rate fluctuations, the risk that research and development will not yield new products that achieve commercial success, the impact of competition, price controls and price reductions, the risk of loss or expiration of patents or trade marks, difficulties of obtaining and maintaining governmental approvals for products, the risk of substantial product liability claims and exposure to environmental liability.
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