Actavis to sell its Pharmatech unit to TPG

Ireland-headquartered generics major Actavis (NYSE: ACT) has reached a definitive agreement with TPG, the global private investment firm, to divest to TPG the business currently known as Aptalis Pharmaceutical Technologies (Pharmatech).

This is a pharmaceutical outsourcing and R&D business within Actavis' subsidiary Aptalis operating in the USA, Canada and Europe (where the transaction is, in certain jurisdictions, still subject to local regulations, discussions and clearances). No other Aptalis businesses or products are included in the transaction. No financial terms of the deal were disclosed. The transaction is expected to close by mid-2015, and is subject to customary closing conditions and regulatory approvals.

Pharmatech is a leader in pharmaceutical R&D and manufacturing, with specialized capabilities in areas such as taste-masking and customized drug release and the ability to support projects from formulation through scale-up and commercial-scale manufacturing. John Fraher, current president of Aptalis Pharmaceutical Technologies, will become chief executive of the new standalone company, and will be joined by others from his management team. The business will continue to operate integrated R&D and manufacturing facilities in North America and Europe.