Intas Pharma to acquire Teva's UK, Ireland generics businesses
The Dollar Business Bureau
What is said to be the biggest investment by an Indian pharmaceutical major in Europe following the Brexit outcome, Ahmedabad-based Intas has acquired Actavis Generics in the United Kingdom and Ireland for £600 million (around Rs.5100 crore) from Israel's Teva in an all-cash deal.
A part of the European Commission's anti-trust divestiture needs emerging from Teva acquisition of Actavis Generics from Ireland-based Allergan unit for $40 billion, the transaction would enable the Indian drug major to tap a high-potential and always-growing UK and Ireland generics markets.
This deal will prompt the company to undertake expansion-related initiatives, and it is expected that the company will add one more manufacturing capability to its existing three plants in the UK, thereby acquiring local supply chains to service pharmacies, hospitals and wholesalers across the UK and Ireland and also into Europe.
Teva expects to double Intas’ European sales to more than $500 million. Sales of Teva’s UK and Ireland business were about $325 million last year.
“This transaction represents a unique opportunity for Intas to build scale in the UK & Ireland - adding to our market leading hospital franchise - and creates a strong platform for further European expansion” says Binish Chudgar, Vice Chairman and Managing Director of Intas.
The company has already been operating through its subsidiary - Accord Healthcare- for over a decade. It has charted out a clear plan for the development of the Barnstaple site and the Actavis UK and Ireland team. “We look forward to welcoming them to the Intas Group. We are confident that the cultural alignment between Accord and Actavis UK & Ireland will ensure a smooth integration,” he said.
“Together we have a great opportunity to build on the strong foundations of our respective organisations; we are excited to join the Intas / Accord family and look forward to an exciting future together” says Sara Vincent, Actavis SVP UK and Ireland.
Intas has its footprint in more than 70 markets globally, but the UK, Europe and the US continue to be its major exports markets.
Indian drug manufacturers have been continuously been looking out for overseas deals. Last year, Lupin acquired the privately-held GAVIS Pharmaceuticals for $880 million. Dr Reddy's also purchased eight US drugs from Teva and Allergan for $350 million earlier this year.