The acquisition of Alpharma makes Actavis one of the five largest companies in generic pharmaceuticals worldwide in terms of revenue*.

 

In addition to the acquisition of Alpharma's human generics business, Actavis acquired  New Jersey- based Amide Pharmaceuticals in May 2005, giving the company a strong presence in the US. Over one third of 2006 Group revenues are expected to be generated in this key market. In addition, Actavis will gain a local presence for its own-label products in the largest European generic pharmaceutical markets, Germany and the UK, as well as enhancing its position in Scandinavia, the Netherlands, Portugal and other European countries.

 

The enlarged Group will have over 200 products in its development pipeline and in registration and is expected to file more than 30 Abbreviated New Drug Applications ("ANDAs") in 2006, positioning the Group among the leading companies in the US in terms of pending ANDAs. Actavis will acquire additional US Food and Drug Administration ("FDA") approved production capacity in the US in addition to European-approved (EU-GMP) plants in the UK, Norway and Indonesia.  The enlarged Group's total manufacturing capacity will be over 24 billion tablets and capsules. The EBITDA margin for the enlarged Group is expected to be around 19-20% for 2006, with total revenues exceeding EUR1.3 billion.

 

Both Alpharma's generics business and Amide Pharmaceuticals will be rebranded as Actavis. The total consideration for Alpharma's human generics division was $810 million in cash.     

 

"Alpharma's strong liquid product portfolio complements Actavis' strengths in oral solid-dose products. We are also gaining access to Alpharma's marketing and distribution network in 11 countries which, together with additional production and R&D capabilities, will enable us to become an even stronger and more efficient organization."