Actavis PLC named Forest Laboratories Inc. Chief Executive Brent
Saunders to lead the combined company once Actavis' $25 billion
takeover of Forest is complete.
The appointment comes as a surprise as current Actavis CEO Paul
Bisaro had told analysts in February he had intended to remain at
the helm of the combined company. Instead, he will become executive
chairman.
With the acquisition of Forest, Dublin-based Actavis is adding a
rival drug maker almost as big as itself. The deal is expected to
bring with it tax savings, benefits that come with an increased
size and an improved product mix.
The acquisition of Forest by Actavis marks the second time in
about a year that Mr. Saunders--who has been Forest CEO since
September--has flipped a company shortly after taking the helm.
Just four months earlier, Mr. Saunders had engineered the sale of
Bausch + Lomb for $8.7 billion to Valeant Pharmaceuticals
International Inc.
He was previously chief compliance officer at Schering-Plough
and was a protégé of Fred Hassan, who had run two large drug makers
-- Pharmacia and, later, Schering.
Mr. Saunders was later placed in charge of the consumer
health-care business and then oversaw the integration with Merck
after the $41 billion deal was announced in 2009. Once that deal
closed, he quickly landed the role of chief executive at Bausch +
Lomb, where Mr. Hassan had become chairman.
As CEO of Actavis, Mr. Saunders will have responsibility for
leading the company's approximately $15 billion global
pharmaceutical business.
Robert Stewart, president of Actavis global operations, will
become chief operating officer.
"These appointments reflect the increased size and complexity of
the combined business, and the exceptional and complementary
expertise of the Actavis and Forest management teams, " Mr. Bisaro
said in a prepared statement.
Actavis also is aiming to cut $500 million in costs by 2016 and
mesh its generic product portfolio with the brand-name drugs sold
by Forest.
A rapidly changing U.S. health-care system provides the backdrop
for the scramble among industry players to consolidate. Health-care
providers and insurers have been joining forces to increase their
bargaining power with drug makers. Generic drug makers also have
been looking for ways to increase their scale and protect their
profits amid intense price competition.
Ed Silverman contributed to this article.
Write to Tess Stynes at tess.stynes@wsj.com
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