2014 Generics Sales: $1.2 billion -17%
Worldwide Market Share: 1.6%
Valeant's ($VRX) branded and other generics unit ranked fourth out of four businesses for the company in 2014, behind pharmaceuticals, devices, and OTC. But that doesn't mean the division didn't record growth.
On the contrary, it posted a 20% leap for the year, jumping from just a shade over $1 billion in 2013 sales to $1.2 billion. And it nearly doubled in size between 2014 and 2012, when sales tallied $681.4 million.
It's no surprise that Valeant, averse to risky R&D, is in the branded generics business; the meds come with low R&D costs and steady sales. Thus, the Canadian pharma has developed some of the products in its portfolio internally; others, it's licensed, and some it distributes for third parties.
Valeant's branded generics sales are tied to its emerging markets regions, where branded, on-patent meds are often unaffordable. With healthcare spending increasing in many of those countries--located in Europe, the Middle East, Asia and Latin America--the company expects to see opportunities to snatch up more market share in those areas.
It did just that in Egypt this year, in July agreeing to pick up Egypt's Amoun Pharmaceutical for $800 million plus contingent payments. That deal will bring Valeant the leading position in Egypt's domestic pharma market, along with branded generics in the antihypertensive, broad-spectrum antibiotic and antidiarrheal spaces.
One rumored 2014 generics pickup that didn't come through for the serial dealmaker: a play for Pfizer's ($PFE) then-newly-created established products unit. In January, the New York pharma giant split into three separate units, and reports listed Valeant--along with others such as Mylan ($MYL) and Actavis ($ACT)--among potential suitors.
-- Carly Helfand (email | Twitter)
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