Vivimed Labs, a manufacturer of specialty chemicals and pharmaceuticals, has signed an agreement to acquire Actavis Pharma Manufacturing's solid oral dosage (SOD) facility in Alathur, Tamil Nadu. The gross acquisition consideration is Rs.1,220 million and is being funded through an optimal combination of internal accruals and debt.
The facility is being acquired from its parent Actavis Holding Asia BV (Actavis), an affiliate of Actavis Inc., a leading global generic and specialty pharmaceutical company.
Commenting on these developments, Santosh Varalwar, managing director and CEO of Vivimed said, “We are pleased to announce the acquisition of APMPL’s SOD facilities as a part of our overall strategy to move up the healthcare value chain. This acquisition is particularly important given it provides our finished dosage formulation manufacturing platform with a US FDA approved facility and immediate access to the regulated markets. There are also compelling forward integration synergies for Vivimed’s existing API business and formulations dossier development activities. Along with the facility, we have acquired two commercially valuable and marketable ANDAs which we believe, will allow us to generate additional revenues. We are also entering into a contract manufacturing agreement with the Actavis Group for a defined period which will also be a source of revenue for us. The transaction has been structured attractively at a low net cash consideration for Vivimed.”
The current capacity of the facility is 1.2 billion SOD per annum. The facility is located on a five acre site of which three acres are currently unutilized. Vivimed eventually plans to meaningfully expand APMPL’s current manufacturing capacities over the medium term.
This acquisition provides Vivimed with immediate finished dosage formulations (FDF) access to the US, the largest generics market in the world. In addition, this US FDA approved facility is a natural extension for Vivimed’s manufacturing platform which currently only caters to the FDF semi-regulated markets.