Actavis moves towards Japanese generics market
Actavis’ Aska deal, first mooted in November, grants the Icelandic firm access to Japan’s $3.5bn generics market that, while growing at a modest 7.5 per cent a year, is set to expand under Government efforts to boost use on non-branded drugs.
Actavis CEO Sigurdur Oli Olafsson said:“We are convinced this is the best way to enter the Japanese market,” adding “the government’s policy to increase the share of generics during the next few years is key to our decision to enter at this time.”
According to a recent RNCOS survey, the Japanese generic drugs market grew at a CAGR of 7.5 between 2003-2008, and while the growth rate is slower than in the US and European, it is seen as having greater potential.
Big Pharma deals
In recent months there has been considerable speculation that French branded drug giant Sanofi Aventis is in the market for a generic acquisition, with Actavis, Brazil’s Medley and India’s Piramal being among the most frequently mentioned targets.
While Sanofi has not commented on the speculation, the firm’s acquisition of Czech generics company Zentiva, coupled with Pfizer recent deal with Aurobindo and rumours about potential suitors for Ratiopharm, provide further evidence of the vogue for non-branded purchases.
The Icelandic firm’s move into Japan and, to a lesser extent Ireland through the unit that became operational last week, will have done nothing to dissuade any Big Pharma company interested in making a generic acquisition.
