Actavis snaps up Warner Chilcott
pharmafile | May 22, 2013 | News story | Research and Development, Sales and Marketing | Actavis, Warner Chilcott
Actavis is to buy Dublin-based firm Warner Chilcott in an $8.5 billion deal which will see the Warner name disappear and the current Actavis leadership team taking charge.
The combined entity will have revenues of $11 billion – $3 billion of which is in the US – and ‘New Actavis’ is expected to focus on women’s health, urology, gastroenterology and dermatology.
The two companies have previously made no secret of their mutual attraction, with the deal approved by both boards and expected to go through by the end of the year.
“The combination is commercially and financially compelling, and reshapes the speciality pharmaceutical universe by creating a powerful global competitor,” suggested Actavis chief executive Paul Bisaro, president and chief executive of Actavis.
“The combination will enhance the value of each company’s portfolio and provides a substantial foundation to support the successful launch of new products over the next several years, particularly in women’s health,” he added.
The products he has in mind include Minastrin 24 Fe, Esmya, metronidazole vaginal gel 1.5%, the progestin-only contraceptive patch and others in development from Actavis’ recent acquisition of Uteron Pharma.
Of an R&D portfolio comprising 25 products, 15 are also in women’s health.
‘New Actavis’ will also have half a dozen marketed urology products – for the treatment of overactive bladder, testosterone replacement, prostate cancer and benign prostatic hyperplasia – while in gastroenterology it has two treatments for ulcerative colitis, and another two in dermatology.
“The Warner Chilcott team has built a powerful speciality brands business with a strong pipeline, and this compelling transaction brings together two complementary organisations with the potential to create even more value for shareholders,” said Warner chief executive Roger Boissonneault.
The new entity – which will be incorporated in Ireland – will have speciality brand sales comprising a quarter of total revenues this year, compared to only 7% for Actavis on its own.
In addition to creating more in-licensing opportunities, bringing together the two companies should also save about $400 million in terms of synergies and taxes, the full effect of which should be seen in 2015, the firms insist.
Adam Hill
Related Content
Patently problematic? The impact of the Eli Lilly/Actavis intellectual property battle
The UK Supreme Court has sent shockwaves through the intellectual property world with its recent …
Gilead to launch injunction against Mylan and Actavis over HIV generics in Ireland
Gilead is expected to launch injunctive action against rivals Mylan and Actavis over the allegation …
Five most talked about mergers and acquisitions of 2016
2017 has kicked off with a bang – as Johnson & Johnson confirmed a $30 …
