REYKJAVIK, Iceland, April 23 /PRNewswire/ -- Actavis Group (ICEX: ACT), the international generic pharmaceuticals company, today announced the successful completion of its acquisition of Abrika Pharmaceuticals Inc., a US based specialty generic pharmaceuticals company engaged in the formulation and commercialization of both controlled release ("CR") and other technically difficult pharmaceutical products. The Company will be consolidated into Group accounts from mid April 2007.
The acquisition increases Actavis' critical mass and ability to leverage its position in the key US market. Actavis now becomes one of the leading companies in the US market in the development of CR products, with over 50 CR products in the pipeline and 100 employees dedicated in the development of CR products. In addition, over EUR50 million is expected to be invested in CR development in 2007. The enlarged Group has 12 pending ANDA's for CR products with the FDA.
Abrika's development expertise and infrastructure will enable Actavis to utilize its existing CR technology and accelerate growth in the niche CR market. Actavis will also seek opportunities to register Abrika's products in Actavis European markets. The formal completion follows approval from The Federal Trade Commission to let the deal proceed on the basis that Actavis and Abrika divest all rights and assets needed to market generic Isradipine capsules. The divestment has no financial impact on Actavis financials in the US.
Commenting, Sigurdur Oli Olafsson, Deputy CEO said:
"Our acquisition of Abrika represents another significant step forwards for our business in the US, a key market where we already generate a third of our total revenues. Abrika enables Actavis to become a leading player in the controlled release market and additional investment will enable us build on our strong position to achieve further growth."
About Actavis Group
Actavis is one of the world's leading generic pharmaceutical companies specializing in the development, manufacture and sale of generic pharmaceuticals. Based in Iceland, the company has operations in more than 30 countries, with over 11,000 employees. The Company's market cap is approximately EUR3.0bn (US$3.8 billion) and it's listed on the Iceland Stock Exchange.
About Abrika
Abrika was established in May 2002 by Alan Cohen, who had previously served as CEO and Chairman of Andrx Corporation, which he also founded in 1992. Based in Fort Lauderdale, Florida, Abrika has approximately 40 employees and a management team with a strong track record of developing and marketing CR products.
Abrika has filed nine ANDAs with the FDA since its inception and launched of its first internally developed product (isradipine) in Q1 2006. The Company believes that it has secured the first-to-file exclusivity on two products, which are expected to be launched after the year 2007.
Abrika has a number of high value product filings and launches planned over the next two years with at least three product launches expected before the end of 2007 and the first one in Q2 2007. Furthermore, 5-6 products are expected to be launched in the year 2008. Abrika has its own dedicated facility in Florida and the necessary infrastructure in-place to support a significant scale-up of the business as a center of excellence for CR products.
Abrika is forecasting revenues of EUR20 million (US$26 million) for 2007 and EUR35 (US$45 million) in 2008, with an EBITDA margin in both years of approximately 40%. The Company will be consolidated into Group accounts from mid April 2007.
Actavis GroupCONTACT: Halldor Kristmannsson, VP Corporate Communications & IR, ofActavis Group, +1-354-535-2300 or 840-3425, hkristmannsson@actavis.com
Web site: http://www.actavis.com//
