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Actavis CEO's next act may be a Stada buyout

Reports: Albrecht canvassing Stada shareholders, lining up investors
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Actavis CEO Claudio Albrecht

Now that Actavis CEO Claudio Albrecht is all but out of a job, rumor has it that he's trying to put together a deal for German generics maker Stada. Albrecht, whose company will be taken over by Watson Pharmaceuticals ($WPI) in the new year, is reportedly scouting for Stada investors willing to sell.

The German company has been a takeover target and a potential buyer, as the generics industry consolidates around it. CEO Hartmut Retzlaff had been slow to admit Stada's need to bulk up--or sell out--but that's changed in recent months. In May, he acknowledged that Stada needs more manufacturing and commercial capacity, and enough scale to turn out meds at high volume and low cost. And organic growth won't cut it, he said.

Meanwhile, Sun Pharmaceutical Industries was reportedly kicking tires at Stada. And the German company stiff-armed the Indian drugmaker just as it had previously rejected buyout interest from Teva Pharmaceutical Industries ($TEVA), Pfizer ($PFE) and Watson, or so sources have said.

It was Sun's interest--and rebuff--that could open the way for Albrecht to engineer a deal, Bloomberg reports, citing Platow Brief. Shareholders disappointed by Sun's rejection may be ready to sign on to an Albrecht-led deal. And Albrecht reportedly has a U.S. investor lined up to back a Stada buyout.

Retzlaff would have personal reasons for resisting such a deal. As Bloomberg reports, Albrecht would replace him as CEO if his takeover foray is successful. Albrecht has said he's planning to leave Actavis after the buyout closes.

- read the Bloomberg news

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