Iceland generic major The Actavis Group will increase its investment in India by another $100 million through acquisitions. The company in the last three years has already invested $ 60 million after buying out Lotus Labs, a clinical research organization, opened a full-fledged research and development centre in Bangalore, acquired two Chennai-based companies: Grandix Pharmaceuticals and the API division of Sanmar Specialty Chemicals Ltd (SSCL), a subsidiary of the Sanmar Group.
"We will spend roughly another $100 million and would look at more Indian companies. We intend to consolidate our operations, build up the business of what we have now. With this infrastructure in India we are confident to boost the business. Currently, our Indian staff strength is 620 employees. India can be a major support for the self development of our products", Robert Wessman, CEO, The Actavis Group told Pharmabiz in an interaction.
The company's maiden entry began in 2000 for a co-development project with Dr Reddys. It set up an office in Hyderabad in 2003-04 to understand the country and its business potential and prospects. Now we have evolved ourselves into varied activities including bio-equivalence studies, research, production of APIs. Actavis made these acquisitions, which are a part of its backward integration strategy in India, stated the Actavis Group chief.
For Actavis, the Bangalore R&D facility will be the largest after Turkey, which is the other location of API activity. The centre will focus on the development of chemical molecules that go off patent. The R&D unit employs 60 scientists and is working to develop 10-15 products in 2007 and the first one is already in progress. The Indian entry is being viewed as a strategic initiative by Actavis for the development of API generic business.
India has a long tradition in generics. It has a vast population armed with both the knowledge and expertise of the business. There are many Indian pharma plants approved by the regulatory majors like US FDA and UK MHRA. Unlike Iceland, which has a population of only 300 million and without any pharma companies undertaking such development work. Therefore, The Actavis Group was forced to look at other countries for talented people. India became a suitable option. At the Actavis Indian R&D unit, there are several applicants for jobs and we do not have such a choice out there in Iceland or any other European company, averred Wessman.
There is no other pharma company from the western world present in India having such an infrastructure like Actavis. "We have an edge in the generics space which is a segment full of competition and falling prices", said Wessman.