Alpharma Sells Generics Business to Iceland's Actavis

Alpharma, Fort Lee, N.J., has agreed to sell its generic drug business to the Icelandic generics firm Actavis Group for $810 million. Alpharma will retain its branded pharmaceuticals, active pharmaceutical ingredients, and animal health businesses. Actavis, which earlier this year acquired Amide Pharmaceuticals, another New Jersey-based firm, for $570 million, will gain a significant U.S. business in generics as well as a line of branded over-the-counter skin care products in Europe. Actavis claims the purchase will place it among the top five global generics players, with a portfolio of more than 600 products and an additional 200-plus candidates in its pipeline. Alpharma CEO Ingrid Wiik says the divestiture “will concentrate our focus on our specialty pharmaceutical businesses, simplify our organization, and provide significantly improved financial capacity.” According to Alpharma, 56% of its generics sales of $446 million in the first half of 2005 were in the U.S. Actavis is projecting 2006 sales of $1.6 billion.