Actavis Acquires Silom Medical Company
- Establishes Leading Position in Fast-Growing Thai Pharmaceutical Market
- Immediately Accretive to Non-GAAP Earnings
- Enhances Actavis' Growth Platform in Southeast Asia
DUBLIN, April 1, 2014 /PRNewswire/ -- Actavis plc (NYSE: ACT), a leading global specialty pharmaceutical company today announced that it has acquired Silom Medical Company, a privately held generic pharmaceutical company focused on developing and marketing therapies in Thailand, for approximately $100 million in cash. The acquisition of Silom Medical immediately elevates Actavis into a top-five position in the Thai generic pharmaceutical market, with leading positions in the ophthalmic and respiratory therapeutic categories and a strong cardiovascular franchise. The transaction is expected to be immediately accretive to non-GAAP earnings in 2014.
"The acquisition of Silom Medical demonstrates our commitment to be a leading specialty pharmaceutical company in Southeast Asia, and will provide the combined business with an even more significant and united presence in the fast-growing Thai pharmaceutical market," said Paul Bisaro, Chairman and CEO of Actavis. "Silom Medical's diverse product portfolio and fully integrated platform, when combined with Actavis' current local commercial activities and world-class global generics infrastructure, will provide consumers in Thailand with expanded access to a combined, larger portfolio of affordable medicines and the increased opportunity to benefit from products in development for the market. The larger presence in Thailand will also create a foundation for Actavis' continued expansion across the Southeast Asian region."
Actavis currently markets approximately a dozen products through local distributors in Thailand, and has approximately nine additional products under registration. The combination is anticipated to result in opportunities to expand the core therapeutic areas of cardiovascular, ophthalmology and respiratory with complementary and novel products, as well as the potential to use Silom Medical's sales channels to create opportunities in new therapeutic categories including Oncology, Women's Health, CNS and others.
Silom Medical is one of Thailand's leading generic pharmaceutical companies, offering more than 25 products in various dosage forms to more than 4,400 hospitals, clinics and drugstores throughout the country. The Company has an experienced, in-house sales force and operates a 32,000 sq. meter manufacturing facility in Ayutthaya with a production capacity of 660 million tablets/capsules and 47 million sterile units per year. Silom Medical has delivered consistent, year-on-year growth in revenue and profit over the past 15 years, most recently exceeding double-digit growth.
According to Business Monitor International, Thailand's pharmaceutical market is valued at approximately $4.3 Billion and is poised for continued growth. Pharmaceutical sales in the country are expected to grow at a compound annual rate of approximately 8 percent, reaching approximately $9 Billion by 2022.
Actavis plc (NYSE: ACT) is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products. Actavis has global headquarters in Dublin, Ireland and U.S. administrative headquarters in Parsippany, New Jersey, USA.
Actavis develops and manufactures generic, brand, branded generic, legacy brands and Over-the-Counter (OTC) pharmaceutical products and has commercial operations in approximately 60 countries. The Company's North American branded pharmaceuticals business is focused principally in the Women's Health, Urology, Gastroenterology and Dermatology therapeutic categories with a strong pipeline of products in various stages of development. Actavis also has a portfolio of five biosimilar products in development in Women's Health and Oncology. Actavis Global Operations has more than 30 manufacturing and distribution facilities around the world, and includes Anda, Inc., a U.S. pharmaceutical product distributor.
For press release and other company information, visit Actavis' Web site at http://www.actavis.com.
Any statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Actavis' current perspective of existing trends and information as of the date of this release. For instance, any statements in this press release concerning prospects related to Actavis' strategic initiatives, including the acquisition of Silom Medical Company, are forward-looking statements. Except as expressly required by law, Actavis disclaims any intent or obligation to update these forward-looking statements. Actual results may differ materially from Actavis' current expectations depending upon a number of factors affecting Actavis' business. These factors include, among others, successful consummation and integration of the Silom Medical acquisition and the ability to recognize the anticipated synergies and benefits of the Silom Medical acquisition; the anticipated size of the markets and anticipated demand for Silom Medical's products; the impact of competitive products and pricing; the inherent uncertainty associated with financial projections; periodic dependence on a small number of products for a significant source of net revenue or income; variability of trade-buying patterns; changes in generally accepted accounting principles; the risks and uncertainties normally incident to the pharmaceutical industry; risks that the carrying values of assets may be negatively impacted by future events and circumstances; the timing and success of product launches; the difficulty of predicting the timing or outcome of product development efforts and regulatory agency approvals or actions, if any; market acceptance of and continued demand for Actavis' and Silom Medical's products; costs and efforts to defend or enforce intellectual property rights; difficulties or delays in manufacturing; the availability and pricing of third party sourced products and materials; successful compliance with governmental regulations applicable to Actavis' and Silom Medical's facilities, products and/or businesses; changes in the laws and regulations affecting, among other things, pricing and reimbursement of pharmaceutical products; and other risks and uncertainties detailed in Actavis' periodic public filings with the Securities and Exchange Commission, including but not limited to Actavis plc's Annual Report on Form 10-K for the year ended December 31, 2013. Except as expressly required by law, Actavis disclaims any intent or obligation to update these forward-looking statements.