Actavis Group, the international generic pharmaceuticals company, has acquired the API division of Sanmar Specialty Chemicals Ltd (SSCL), a subsidiary of the Sanmar Group based in Chennai, Southern India. The acquisition price is not disclosed.

SSCL's API division provides Actavis with a wholly-owned FDA approved facility and the ability to develop and manufacture its own API's, the single largest cost component in Group's manufacturing. With the acquisition, Actavis has captured the entire value chain and the division will strongly complement the Group's existing manufacturing capabilities in Chennai, acquired from Grandix Pharmaceuticals in December 2006, as well as its leading CRO (Contract Research Organisation) business, Lotus Laboratories in Bangalore, acquired in February 2005.

As part of this acquisition Actavis has also entered into a service agreement with SSCL to provide Actavis with API R&D services at SSCL's research facilities. This is in addition to the wholly owned API development centre set up by Actavis in Bangalore, which is already in operation. The Group now has a total of 30 API projects under development in India.

Actavis will continue the ongoing third party business of the Alathur API unit and aims to increase these sales and further grow the business relationship with current and new clients.

SSCL's FDA approved API facility, located at Alathur, near Chennai, supplies active pharmaceutical ingredients to international pharmaceuticals companies, mostly in Europe and the US. Capable of undertaking complex reactions, the division currently manufactures 15 products. The division employs approximately 70 people.

Actavis now has over 620 people employed in India, with operations in Chennai, Bangalore and Hyderabad.

Commenting, Robert Wessman, president and CEO of Actavis said, "This acquisition strengthens our position in India, providing us with superior backward integration through our leading CRO business, Lotus, and our API and finished dose development and manufacturing. We foresee that both development and manufacturing of API will become an increasing part of our business. At the same time, we have improved our ability to further reduce manufacturing costs and provide additional support for our growing business across Europe and the US for solid dose manufacturing."