Distribution of company announcements to the professional platforms, finance portals and syndication of important corporate news to a wide variety of news aggregators and financial news systems.
Actavis (ICE:ACT) Tokyo, 11 November 2008 -- Actavis Group and ASKA Pharmaceutical (Tokyo Stock Exchange: 4514) announce that the companies have concluded a preliminary agreement concerning the establishment of a joint company: Actavis ASKA Co., Ltd. - planning to enter the Japanese generic pharmaceutical market in April 2009.
ASKA will hold 55% of shares in the joint venture; Actavis 45%.
Strategic Rationale Japanese government policy requires an increase in the generic share of the total pharma market (in volume) so that this share grows to more than 30% by 2012. Measures - for example, the re-amendment of the prescription form in April 2008 - are being taken to facilitate this policy objective and, therefore, increase the usage of generic products.
Through this business alliance, ASKA will have the ability to enter the market with the benefit of Actavis' product portfolio and in addition will have the possibility of exploring the export potential for its new products and value-added formulations via Actavis' global marketing channels.
Actavis has the opportunity to enter the Japanese market and utilize its wide product portfolio, both existing and in the pipeline, in co-operation with an experienced and resourceful partner.
Takashi Yamaguchi, CEO, ASKA Pharmaceutical: "This business alliance will enable ASKA to combine the benefits of its expertise in developing and marketing pharmaceutical products in Japan with Actavis' broad range of products marketed globally. Thus, the new joint company will be able to maximize the different and complementary strengths of its founders, and will aim to become a leading company in the Japanese generic products' market."
Sigurdur Oli Olafsson, CEO, Actavis Group: "This is an excellent opportunity for Actavis to enter the Japanese market - the second biggest pharmaceutical market in the world. The government's policy to increase the share of generics during the next few years is key to our decision to enter the Japanese market at this time. We are very much looking forward to a long and successful partnership with ASKA, a strong partner with an excellent local network."
About Actavis Actavis is one of the world's leading generic pharmaceutical companies specializing in the development, manufacture and sale of generic pharmaceuticals. The company has operations in 40 countries, with 11,000 employees. Further information about Actavis can be found on the corporate website: www.actavis.com.
About ASKA Located in Tokyo, Japan, ASKA Pharmaceutical is a research and development (R&D) oriented company, which contributes to society by developing and providing innovative pharmaceutical products, concentrating its management resources to the specific therapeutic areas. Additional information about ASKA, is available through its corporate website, http://www.aska-pharma.co.jp/english.
Summary of joint company Name: Actavis ASKA Co., Ltd. Head Office: Tokyo Capital: 200 million Yen (planned) Investment ratio: ASKA: 55%, Actavis: 45% Establishment: April 2009 (planned)
Enquiries Actavis Group Hjördís Árnadóttir Director - External Communications Tel: (+354) 535 2300 / 840 7476 E-mail: harnadottir@actavis.com
Any statements contained in this press release that refer to Actavis' estimated or anticipated future results or future activities are forward-looking statements which reflect the Company's current analysis of existing trends, information and plans. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions, the success of new products, the strength of competition, the success of research and development issues, unexpected contract breaches or terminations, exposure to product liability and other lawsuits, the effect of currency fluctuations and other factors.
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
