Pharma/fine chemicals roundup—14 January 2014
12:14 AM MST | January 14, 2014 | By DEEPTI RAMESH
H.I.G. reaches deal to acquire parent of Ampac Fine Chemicals for $392 million
American Pacific (Ampac; Las Vegas), the parent company of Ampac Fine Chemicals (AFC; Rancho Cordova, CA), announced that it has entered into a definitive merger agreement to be acquired by investment funds managed by H.I.G. Capital, a leading, global, private investment firm, in an all-cash transaction valued at approximately $392 million.
Under the terms of the merger agreement, affiliates of H.I.G. will, no later than 24 January, commence a tender offer to acquire all of the outstanding shares of Ampac common stock at a price of $46.50/share—an 18.9% premium over the closing share price on 9 January and 17.1% over the 60-day volume-weighted average closing share price as of the same day. If the tender offer is completed successfully, then shares of Ampac not tendered will be acquired in a second-step merger at the same cash price per share paid in the tender offer. The completion of the transaction is subject to, among other things, customary closing conditions contained in the definitive merger agreement. The Ampac board of directors unanimously approved the transaction and recommends that Ampac stockholders tender their shares in the tender offer.
Teva names Makhteshim Agan boss as new CEO
Teva Pharmaceutical Industries (Petaḥ Tiqwa, Israel) says that Erez Vigodman, 54, has been appointed as president and CEO, effective 1 February. Teva announced on 30 October 2013 that its president and CEO, Jeremy Levin, had stepped down. Vigodman is currently president and CEO of Makhteshim Agan Industries (Tel Aviv), the world’s leading generic agrochemical company. Vigodman will retain that position until 6 February. Teva's group executive v.p. and CFO, Eyal Desheh, who filled the role of CEO on an interim basis, will now return to his position as CFO.
Teva develops, produces, and markets generic drugs as well as innovative and specialty pharmaceuticals and active pharmaceutical ingredients (APIs). Teva has the largest API business in the world in terms of sales, and the company is also the world's leading generic drug maker. Teva currently employs about 46,000 people worldwide and recorded total sales of $20.3 billion in 2012.
AMRI appoints senior v.p. and general manager for API business
Albany Molecular Research Inc. (AMRI; Albany, NY) says it has appointed George Svokos as senior v.p./sales and general manager, active pharmaceutical ingredients (APIs). Prior to his role at AMRI, Svokos has been with Teva Pharmaceutical Industries (Petaḥ Tiqwa, Israel) since 1979, and most recently, he was senior v.p./product and portfolio selection, and business development.
“Svokos is a strategic thinker who comes to AMRI with years of experience in pharmaceutical manufacturing, business development, R&D, and sales and marketing,” says William Marth, president and CEO of AMRI. “With his experience handling a large sales force in a multibillion dollar business, Svokos’ main focus is to develop a commercial strategy around APIs, as well as to assist on the sales side of the business.”
Ranbaxy receives FDA notice of possible API plant violations
Ranbaxy Laboratories (Gurgaon, India), a member of the Daiichi Sankyo Group (Tokyo), has been notified by the US Food and Drug Administration (FDA) that a recent inspection found possible violations at Ranbaxy’s APIs plant at Toansa, India. Ranbaxy says that on 11 January it received Form 483 with certain observations following the recent US FDA inspection at the plant. Ranbaxy “is assessing the observations, and will respond to the FDA in accordance with the agency's procedure to resolve the concerns at the earliest,” the company says. It adds that it is continuing to improve its systems and processes, and remains fully committed to upholding the highest standards that patients, prescribers, regulators and all other stakeholders expect from the company.
Lonza signs agreement with Index Ventures for development and manufacture of biologics
Lonza and Index Ventures, a leading venture capital investment firm, have signed an exclusive five-year agreement for process development and cGMP production for all biological products in the portfolio of companies where Index Ventures is the major investor. Additional development and manufacturing projects will be added to the product list over the course of the agreement as future investments are made by Index Ventures, Lonza says.
Koda acquires NJ-based distributor
Koda Distribution announced that it has acquired Marcor Development Corp. (Carlstadt, NJ), a specialty chemical distributor serving the nutraceuticals, biologicals, pharmaceuticals and related markets. Financial terms were not disclosed. Marcor will maintain its current management and staff at Carlstadt, Koda says.
Beyond IHS Chemical Week:
Aurobindo Pharma in talks to buy API units of Actavis in Western Europe
from The Economic Times, India
Aurobindo Pharma is in talks with global pharma giant Actavis to buy their API units in Western Europe, sources familiar with the development suggest. This is in-line with Aurobindo's strategy to vertically integrate their injectables business by buying ingredient making units.
Actavis wants to sell loss making units in IItaly, Spain, France, Germany and the Netherlands. The API units have a revenue of close to $500 mn. Aurobindo Pharma is said to be in talks to buy one or two units.