Actavis, a leading generic pharmaceuticals company, has acquired a 90% share in Zhejiang Chiral Medicine Chemicals Company in China for an undisclosed amount.
The move is part of Actavis’ strategy to gain access to low cost manufacturing of APIs or active pharmaceutical ingredients. The Zhejiang Chiral Medicine Chemicals Company specialises in research, development and production of APIs.
This latest acquisition, together with Actavis’ business in India, will increase the company’s cost competitiveness as well as being of strategic importance for Actavis in selling APIs to other pharmaceutical companies.
There are substantial overlaps between Chiral’s and Actavis’ product portfolios which will result in a significant drop in cost for a number of Actavis pharmaceuticals.
Robert Wessman, CEO and President of Actavis said, “This new facility will enable Actavis to further reduce its manufacturing costs and is an important extension of our activities in China. In addition, this further strengthens our backward integration, increasing our API manufacturing capacity.”
Founded in 2001, Zhejiang Chiral Medicine Chemicals Company currently employs around 200 employees in its API manufacturing plant, located in Hangzhou, China. Its products are currently sold to various pharmaceutical companies outside China.
Actavis is a leading generic pharmaceutical company which specialises in the development, manufacture and sale of generic pharmaceuticals. Based in Iceland, the company has operations in 40 countries and 11,000 employees.