The pharmaceutical company Actavis is looking at transforming Malta into a regional hub for north, central and West Africa and beyond, according to its vice-president for emerging markets, Hordur Thorhallson.

The company, which has a plant in Bulebel, yesterday signed a multi-million dollar agreement with an Algerian company for the distribution and packaging of a number of generic products. The local branch already handles the region.

The five-year deal is expected to net Actavis some €14 million a year, the regional director for north, central and West Africa, Daniel Vella Friggieri, told a press conference.

"This agreement signifies the start of a partnership with Laboratoire Pharmaceutique Algerien (LPA), which is considered a leader in the Algerian pharmaceutical market," Mr Vella Friggieri said, adding that the deal was an important stepping stone for Actavis to penetrate the African market.

Although a number of the products are manufactured in the local plant, the branch of Actavis in Malta was not expected to increase its staff, Mr Vella Friggieri said.

Present for the signing were LPA president Ait Adjedjou and operations director Guillaume Tornadre.

Actavis, which operates in 40 countries, specialises in the development, manufacturing and sales of generic pharmaceuticals. Generic drugs are manufactured by a company that does not develop them itself but are chemically equivalent to the innovative drug.

LPA is one of the leading companies in Algeria with more than 20 per cent of the pharmaceutical market distribution in its country. It has an annual estimated growth of $600 million.