Actavis Plans To Cut Jobs And Expand In China
Published: Nov 26, 2014
November 25, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Genric drugmaker Actavis plc is aiming to cut its staff and make further moves in China. Chief Executive Officer Brett Saunders told Bloomberg News on Monday.
Saunders did not elaborate on how many positions would be eliminated, but there are overlaps in corporate functions as a result of the takeover of Allergan Inc. earlier this month. Actavis was not immediately available for comment after the news broke.
Actavis Acquires Allergan for $66 Billion
The news of Actavis’ acquisition came on Nov. 17. As a result of the deal, the two companies will combine to create one of the top 10 global pharmaceutical companies in terms of sales revenue. Together, they are predicted to bring in an annual pro forma revenue of $23 billion in 2015.
"This is a financially compelling transaction,” said Saunders, following the transaction. “With pro forma revenues in excess of $23 billion anticipated in 2015, this combination doubles the revenue generated by our brands business and doubles the international revenue of the combined company. Management is committed to maximizing the potential for the combined company to drive industry-leading top and bottom line growth. With this combination, we plan to transform the growth profile of our pharmaceutical business and have the ability to generate organic revenue growth at a compound annual growth rate of at least 10 percent for the foreseeable future.”
Actavis’ projects will generate at least $1.8 billion in annual synergies beginning in 2016. The company also plans to continue to invest about $1.7 billion each year in research and development.
"This combination will greatly enhance our U.S. and international commercial opportunities," said Paul Bisaro, executive chairman of Actavis. "In the U.S., the combination makes us more relevant to an even broader group of physicians and customers. Overseas, it will enhance our commercial position, expand our portfolio and broaden our footprint in Canada, Europe and Southeast Asia and other high-value growth markets, including China, India, the Middle East and Latin America."
Actavis and Allergan will have a commercial presence in 100 markets around the world, including Canada, Latin America and Europe. The deal will also add 15 projects in near- and mid-term development to Actavis’ development portfolio.