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Alpharma shifting focus toward growing revenues by making operational investments
By Jennifer Lanning Drey
Portland, Ore., May 31 - Alpharma Inc. expects to improve its revenues and double its business over the next five years by making operational investments in each of its three business sectors, Dean Mitchell, Alpharma's chief executive officer, said at the Bank of America 2007 Health Care Conference held Thursday in Las Vegas.
"We're focusing on growth and innovation, which is a little bit different than the focus of the company previously, which has very much been on cash generation and paying down debt," Mitchell said.
Alpharma has about $400 million of cash available following its March convertible notes offering, which raised $300 million, according to Mitchell.
The current cash on hand provides financial flexibility for the company to take advantage of portfolio expansion opportunities, he said.
Alpharma will make significant investments in research and development, and the company plans to invest most heavily in its pharmaceuticals business, where it will look to add new capabilities centered on commercialization and product development, he said.
"We're investing to create the future," Mitchell said.
Alpharma believes its pharmaceuticals segment will demonstrate 40% to 50% compound growth over the next five years.
The company also plans to make investments in its animal health and active pharmaceutical ingredients businesses and expects those sectors to each show 6% to 8% compound growth in the same time period.
Those projections do not include growth acquisition targets, he said.
Alpharma is a Bridgewater, N.J.-base specialty pharmaceutical company.
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