The Company has conditionally agreed to acquire Lotus Laboratories ("Lotus"), the Indian Contract Research Organisation (CRO) company, for a cash consideration of around EUR20 million.   

 

The acquisition is subject to the satisfaction of certain conditions completed in coming weeks.

 

Headquartered in Bangalore, India, Lotus was established in 2001 and currently employs over 230 people.   The company specialises in the management of clinical trials to study the bioavailability and bioequivalence of drugs, drug-drug interaction and early and late phase clinical trials. The acquisition is not expected to materially affect Actavis' financial results in the short term but is expected to reduce the Group's R&D expenditure and to support the Company's entry into the US market.

 

Actavis also announces today a strategic collaboration with the Indian pharmaceutical company, Emcure Pharmaceuticals, on four products, which they will manufacture for Actavis for the US market.  This collaboration will significantly lower the cost base for these products which have been developed by Actavis R&D specialists and will be marketed by Actavis in the US.

 

Commenting on today's announcement, Robert Wessman, President & CEO of Actavis, said: "This agreement is in line with our strategy to gain access to the high level of expertise in India, increase our R&D capacity and at the same time lower our R&D expenditure in the medium term. Alongside it gives us the ability to build a presence for our product portfolio in the US market. The acquisition of Lotus gives us a first-class contract research presence in India."

 

For further information, contact:

Halldor Kristmannsson
Corporate communications
(+354) 535-2300 / 840-3425
hkristmannsson@actavis.com 

 

Julia Phillips/Davina Langdale
Financial Dynamics
(+44) 207 831 3113

 

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 those 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.