Pharmaceutical Executive Europe - September 2006 - (Page 31)

Courting Consolidation The next 5 years will be a period of major change in the generic medicines industry. Actavis chairman and CEO Robert Wessman wants to be part of it. decrease, with the result being more competition for he last 7 years has seen Actavis transform from a T each product going off patent. small Icelandic company to one of the biggest In today's environment, it is important to gain critical players in the generics market, with around 300 mass to be competitive and profitable. Critical mass is products currently under development or in only gained by having a strong product pipeline and a registration. During that time the company has made strong sales and marketing network covering the more than 25 acquisitions with nine occuring in the world's key markets. last 18 months. In the same period, the company's value has risen from 34 m to nearly 2.4 billion, and its The key growth drivers for the generic industry are the number of patent expiries in the future and number of employees from 100 to 10000, making it the increased generic penetration in each country. For fastest-growing company in the generics sector. It each individual company, the growth opportunities are recently announced plans to take over Pliva, which will mainly defined by the pipeline of new products and further catapult it in to the big league. the market coverage. Pharmaceutical Executive Europe spoke to Actavis To be competitive, it is important to have a global chairman and CEO Robert Wessman about the reach, with a low cost structure and a strong product importance of continued consolidation in the generics pipeline. This is why we will continue to see industry, and what he sees the future holding for consolidation in the industry and the global generics companies in the market place. market being controlled by small number of global What do you see as the driving force behind the companies in the future. growth of generics in Europe? Some notable Big Pharma companies are The environment for generics companies has changed widening their generics portfolio. Can generics rapidly over the last 5 years and I expect to see the companies compete with this? competition increase as we go forwards. The main reason for this trend has been the increased number of There are many differences between the operational companies entering the market, some of which are philosophies of Big Pharma and generics companies. The backwards-integrated into active pharmaceutical Big Pharma companies are focused on basic research, ingredients APIs at the same time, with good which takes up to 10 years for each product, including capabilities to develop and produce finished expensive clinical research. The Big Pharma pipelines formulations. We also recognized that, going forwards, usually have a limited number of molecules because of the number of molecules going off patent would the high R&D cost. The generics companies are focused 31

Table of Contents for the Digital Edition of Pharmaceutical Executive Europe - September 2006

European Overview: Competition Time
Growth Strategies: Survival of the Fittest
Pharma Defence Strategies: Fighting Fire with Fire
Biogenerics: The Evolution of Biosimilars
Branding and Marketing: What's in a Name?
Branding and Marketing: A New World Order
Legal: Balancing Acts
Q&A: Champion of Industry
Q&A: Courting Consolidation
Market Outlook: Top Five Trends

Pharmaceutical Executive Europe - September 2006