INTERVIEW: Actavis CEO To Leave Company After Watson Integration
April 26 2012 - 11:27AM
Dow Jones News
The chief executive of generic drug maker Actavis says he will
stay with the Swiss company until its integration by U.S. peer
Watson Pharmaceuticals Inc. (WPI) is completed early next year.
"I will stay on board and help the integration until early next
year, but my mission ends thereafter," Claudio Albrecht told Dow
Jones Newswires in an interview Thursday.
Albrecht, who formerly headed the German generic drug maker
Ratiopharm, said he will probably remain active in the sector after
that, but declined to comment on specific plans.
Watson on Thursday formally said will acquire Actavis in a deal
potentially valued at roughly EUR4.5 billion ($5.94 billion), which
will give the U.S.-based group a boost in the global rankings of
generic drug makers to No. 3. The deal is expected to close in the
fourth quarter.
Albrecht called the transaction a "win-win deal" as it more than
doubles Watson's international access and strengthens its position
in key established European markets as well as emerging growth
markets, including Central and Eastern Europe and Russia.
Albrecht joined Actavis as CEO in late 2009, turning the company
around and growing sales by around 15% annually in the last two
years, outperforming other players in the sector. "Watson saw our
performance and thus approached us," Albrecht said.
He said Actavis remains on track to grow sales and Ebitda by a
further 15%.
Albrecht said the turnaround at Actavis was achieved by
centralizing the company, bringing in managers from outside the
group and building research and development teams that shepherd
copycat drugs from early research and development stages to
launch.
He foresees the current spate of M&A activity
continuing.
Albrecht expects the four largest players to either take over
smaller rivals or the Tier 2 companies to merge among each other,
potentially with the help of financial investors. As a role model,
he pointed to Czech based Zentiva, which was taken private by
equity firm Warburg Pincus (WBP.XX) in 2003 and subsequently
snapped up Eastern European competitors before it was taken over by
French drug heavyweight Sanofi S.A.(SAN.FR).
The 'big four' generic drug makers are Teva Pharmaceuticals
(TEVA), Swiss drug heavyweight Novartis AG's (NVS, NOVN.VX) Sandoz
unit as well as the combination of Watson and Actavis, which will
surpass the world's currently third-largest competitor Mylan Inc.
(MYL).
"Actavis will launch 20 generic drugs this year, with a copycat
of Pfizers Lipitor being one of the largest ones," he said.
By Eyk Henning, Dow Jones Newswires, +49(0)69 29725 108;
eyk.henning@dowjones.com
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