Actavis plc, a global specialty pharmaceutical company announced that it has acquired Silom Medical Company, a privately held generic pharmaceutical company focused on developing and marketing therapies in Thailand, for about $100 million in cash. The acquisition immediately elevates Actavis into a top-five position in the Thai generic pharmaceutical market, with leading positions in the ophthalmic and respiratory therapeutic categories and a strong cardiovascular franchise. The transaction is expected to be immediately accretive to non-GAAP earnings in 2014.
"The acquisition of Silom Medical demonstrates our commitment to be a leading specialty pharmaceutical company in Southeast Asia, and will provide the combined business with an even more significant and united presence in the fast-growing Thai pharmaceutical market," said Paul Bisaro, Chairman and CEO of Actavis. "Silom Medical's diverse product portfolio and fully integrated platform, when combined with Actavis' current local commercial activities and world-class global generics infrastructure, will provide consumers in Thailand with expanded access to a combined, larger portfolio of affordable medicines and the increased opportunity to benefit from products in development for the market. The larger presence in Thailand will also create a foundation for Actavis' continued expansion across the Southeast Asian region."
Actavis currently markets approximately a dozen products through local distributors in Thailand, and has approximately nine additional products under registration. The combination is anticipated to result in opportunities to expand the core therapeutic areas of cardiovascular, ophthalmology and respiratory with complementary and novel products, as well as the potential to use Silom Medical's sales channels to create opportunities in new therapeutic categories including Oncology, Women's Health, CNS and others.
Silom Medical is one of Thailand's leading generic pharmaceutical companies, offering more than 25 products in various dosage forms to more than 4,400 hospitals, clinics and drugstores throughout the country. The company has an experienced, in-house sales force and operates a 32,000 sq. meter manufacturing facility in Ayutthaya with a production capacity of 660 million tablets/capsules and 47 million sterile units per year. Silom Medical has delivered consistent, year-on-year growth in revenue and profit over the past 15 years, most recently exceeding double-digit growth.
According to Business Monitor International, Thailand's pharmaceutical market is valued at approximately $4.3 billion and is poised for continued growth. Pharmaceutical sales in the country are expected to grow at a compound annual rate of approximately 8 percent, reaching approximately $9 billion by 2022.