Generics manufacturer Actavis has acquired the plant from Southern India-based Grandix Pharmaceuticals for an undisclosed sum. In addition to development and manufacture of products for the US and European markets, the plant will also be used to develop and re-launch older products that require a lower cost base to remain competitive in the international marketplace.
The company aim to increase production at the plant from around 700m tablets a year to approximately 4bn over the next eighteen months.
On top of this latest purchase, the company has also opened a new active pharmaceutical ingredient (API) development unit in India with the aim to develop 10-15 products a year - the first 10 are already in progress. By establishing this new API facility, the company is aiming to backward-integrate its business, thus gaining control of their supply chain and further reduce input costs.
These latest developments reinforce Actavis' position in India, having established a strategic collaboration with Indian pharmaceutical Emcure, as well as acquiring Bangalore-based contract research organisation (CRO) Lotus Laboratories for €20m in February 2005 which helped further reduce the Group's R&D expenditure.
"The new facility will enable Actavis to further reduce its manufacturing costs and provide the support and expertise necessary to extend our growth into the key European markets and the US," said Robert Wessman, CEO and president of Actavis.
In a separate move which further reflects the company's intentions to consolidate its European operations, Actavis also announced that it had divested its manufacturing facility in Lier, Norway. The plant was bought in December 2005 as part of the company's acquisition of Alpharma Inc., and it's disposal will result in cash proceeds to Actavis of approximately €10m.
The company has established a five-year supply agreement with Swedish contract manufacturing company Inpac to ensure that current customers' needs are met.