Actavis still deciding on 50 million euro greenfield investment

Actavis, the sixth-largest worldwide generic drug producer, recently announced it planned to build a unit for oncological drugs in Bucharest. ‘‘This is a difficult decision for Actavis as they are very careful with their money,’‘ according to Actavis country Manager, Laurentiu Scheusan, for Business Standard. ‘‘Actavis develops by way of acquisitions, they have never built a factory from the ground up,’‘ he added. Scheusan told Business Standard that although Actavis made the lowest offer for Sindan, it convinced the former owner that it could take the business forward.

A decision will most likely be made by the end of next month at the Actavis board meeting, on the future factory, he added.

The sales forecasts shows that demand for cancer medications produced by Actavis in Bucharest will increase three-fold by the end of 2007 or beginning of 2008, so a rise in production capacities is necessary.

Actavis’ only oncology treatment producer is Sindan, bought by the Iceland-based company last year for €150 million. ‘‘We do not have the green light from headquarters for the new investment. If they give us the go-ahead, the first option will be Romania,’‘ Scheusan said.

The land for the future production unit has not yet been purchased, but ‘‘discussions are ongoing,’‘ according to Scheusan. Some five hectares of land are necessary for the plant. ‘‘We have several locations in mind, (...) we are focusing on plots of land close to Bucharest,’‘ he added. Some 300 people could be employed in the new production unit, thus doubling the number of employees on Actavis’ Romanian payroll.

Scheusan does not rule out further acquisitions on the local market. ‘‘This is the company’s strategy, it is always in a rush to buy, so new opportunities could appear,’‘ he said.

Actavis has bought some 25 production units since 1999. The group posted net sales worth €1.4 billion, and has a budget of €1.6 billion in 2007.

Actavis is operating in some 40 countries and employs more than 11,000 people worldwide. The group is listed on the Iceland Stock Exchange, with a €3 billion market capitalization.

‘‘This is a difficult decision for Actavis as they are very careful with their money''  Laurentiu Scheusan  Actavis country Manager