The acquisition by Aurobindo Pharma Limited of a number of Actavis plc operations in seven European countries is not expected to hit the workforce at the two Actavis plants in Malta, Times of Malta has learnt.
Actavis yesterday announced its intention to enter into an agreement for Aurobindo Pharma Limited to acquire its operations in seven markets in Western Europe. The deal is conditional on certain anti-trust approvals and completion of employee consultation processes.
Though Malta was not among the seven countries in the agreement, questions were raised about the company’s future in Malta in the wake of last March’s decision to close the research and development branch in Malta. As a result 64 employees lost their jobs.
Contacted by Times of Malta, Sergio Vella, vice-president manufacturing operations (Western Europe), said that the agreement would be formalised over the next weeks.
He said under the terms of the agreement, the two companies would enter into a agreement whereby Actavis would continue to supply Aurobindo. So Actavis did not expect the agreement to have an impact on its local employment levels in the foreseeable future.
The company was planning to expand its operations in Malta
This newspaper also sought the reaction from Aurobindo Pharma (Malta), to learn whether the local Actavis plants would be transferred under its management as part of the agreement.
Aurobindo Malta managing director Frederick Schembri said the company was planning to expand its operations in Malta, which served as a testing and batch release site for the company’s European market.
As a result, apart the capital investment to expand operations in Malta, the company was planning to increase the local workforce.
Under this agreement Aurobindo would acquire Actavis’ pharmaceutical commercial infrastructure in France, Italy, Spain, Portugal, Belgium, Germany and the Netherlands, including products, marketing and license rights. The two companies will also enter into a long-term strategic supply arrangement.