INTERVIEW: Actavis CEO To Leave Company After Watson Integration

Date : 04/26/2012 @ 11:27AM
Source : Dow Jones News
Stock : Actavis, Inc. (WPI)
Quote : 85.73  0.0 (0.00%) @ 2:05AM

INTERVIEW: Actavis CEO To Leave Company After Watson Integration

Watson (NYSE:WPI)
Historical Stock Chart

5 Years : From Jul 2012 to Jul 2017

Click Here for more Watson Charts.

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

Latest WPI Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.