One of the world?s largest generic companies, Actavis Pharma of Iceland, is looking for suitors. The company is learnt to have mandated merchant bankers, including at least one Indian entity, to conduct due diligence and is understood to be keen on offloading a stake by finding partners and collaborators.
Actavis is one of Iceland?s largest companies and among the top five global generics firms. The tiny nation has been badly singed by the global financial crisis, with its three largest banks nationalised recently by the government.
An e-mail sent by FE to the Actavis headquarters in Iceland on Monday seeking confirmation remained unanswered. But the company stated on Monday in Europe that its business is unlikely to be impacted by Iceland?s financial crisis. ?Only 1% of Actavis? revenues are generated in Iceland,? the statement said.
It further said that the company?s financial support is outside of Iceland and the company?s books are in euros, not in Icelandic krona, which has witnessed a dramatic fall. The currency tumbled 45% against the euro on October 7. The currency touched its 15-year lowest point after the global financial crisis broke out.
?The global financial crisis does not impact our normal course of business, and we will remain focused on providing quality products to our customers,? said Actavis. The company has made over 20 acquisitions in the past nine years.
The chairman of the Hafnarfjordur-based company, which has operations in 40 countries including India, is Thor Bj?rg?lfsson. Actavis employs 11,000 people worldwide. The company estimates its gross revenue to touch euro1.6 billion in 2007, with approximately one-third of its sales coming from the US, the company?s single-largest market. The company?s market cap was euro 3.8 billion at the end of 2007.
The current market cap is difficult to ascertain as the government has downed the shutters of the Reykjavik stock exchange, fallout of the current financial crisis. The Nordic country, which has a population approximately half that of central Delhi, is one of the first to be hit badly by the current global financial crisis.
The financial meltdown led the country?s government to take control of Iceland?s three largest banks: Kaupthing, Landsbanki, and Glitnir. Bj?rg?lfsson has a 45% shareholding in Landsbanki.
In India, Actavis employs more than 620 people, and carries out bio-equivalence studies, stability testing, as well as developing and producing APIs. In 2005, Actavis acquired Lotus Laboratories, a domestic contract research organisation headquartered in Bangalore. It also has two manufacturing facilities in Chennai.