ALVOGEN PARTNERS WITH ROBERT WESSMAN TO BUILD A LEADING INTERNATIONAL GENERICS COMPANY
New Jersey, July 29, 2009. Alvogen Group, the New Jersey-based generic pharmaceutical company, today announces that Robert Wessman, former CEO of Actavis, one of the world’s leading generic pharmaceutical companies, has become Executive Chairman. At the same time, Mr. Ghiath Sukhtian, Chairman of Alvogen, Mr. Wessman and AFI Partners, a US-based private equity firm, have unveiled plans to substantially grow Alvogen globally and build the next generation international generic pharmaceutical company.
Robert Wessman is known for his clear focus and his ability to successfully combine operational efficiency and external growth through strategic acquisitions and integration of over 30 companies. His achievements have made him the subject of a Harvard Business School Case Study published in May 2008, titled “Robert Wessman and the Actavis “Winning Formula.” Doug Drysdale CEO of Alvogen has been the driver of more than 100 pharmaceutical and biotech transactions in 30 countries, mainly focusing on growing multi-regional businesses. Mr. Drysdale has more than 20 years experience in the industry and previously served as Actavis Group’s Vice President of Mergers and Acquisitions. Also joining the Alvogen board are two former colleagues, Arni Hardarson, CEO of Salt Investments and former Chief Counsel for Actavis Group and Dr. Svafa Gronfeldt, former Deputy CEO of Actavis Group. Ghiath Sukhtian will remain on the board of Alvogen.
Alvogen is a generic pharmaceutical company, built on a strong foundation that includes Norwich Pharmaceuticals. With more than 100 years in operation, the company has become a successful, full-service pharmaceutical manufacturer of Rx and OTC products for U.S., E.U. and international markets with an unsurpassed regulatory compliance history. Designed to overcome the current challenges of the global generic pharmaceutical industry the company is focused on complex generic products, with a platform of first-class development and manufacturing. With a strong commitment of capital to date, Alvogen aims to build the next-generation generics company through the strategic selection of products, partners and markets, and the utilization of a consolidated global supply chain. The company’s vision is to build a leaner and more flexible multinational operation that overcomes the challenges of the traditional generics business model.
Alvogen has both financial strength and advanced product development capabilities. With a current pipeline of 40 solid dose, controlled release and transdermal patch products for the US market, Alvogen’s initial pipeline will target branded products with annual sales in excess of US$17bn. Alvogen has full-service Rx production capabilities in state-of-the-art 8bn-tablet, 375,000 square feet facilities with an exceptional reputation for quality.
Commenting on the transaction, Ghiath Sukhtian said: "Our executive team has rapidly created an attractive generics business and the Alvogen board is proud that this has attracted a leader of Robert Wessman’s caliber and track record to our Group. Under Robert’s leadership we are confident that our strong generics business can expand to become a leading multinational competitor".
Robert Wessman said: "The reality facing the generic pharmaceutical industry today is a continuous decline towards a purely commodity-based business, creating tremendous pressures on operating costs. To be viable, the next generation generics companies must have competitive operating costs and evolve their capabilities to reflect these new strategic priorities. Alvogen’s growth strategy is based on four pillars: strong strategically selected product pipeline; selected high-growth, high- potential markets; a lean supply chain; and the provision of a broad range of outsourcing services to third parties. Alvogen is applying this targeted approach to its product and market selection and creating a lean supply chain through the use of few large production sites. These priorities are driving Alvogen‘s product pipeline growth through specialized R&D efforts and strategic partnerships. In parallel we are strengthening our third party services business, Norwich Pharmaceuticals, through expanded service offerings. The cornerstone of Norwich’s success is to offer industry-leading services while building strong third-party customer relationships based on trust, respect and confidentiality. Drawing on the Company’s existing strengths and with a clear vision of the future, Alvogen aims to build the next generation global generics leader."