India's Aurobindo Pharma is taking over some of Actavis' operations in seven western European countries for around 30 million euros as part of its strategy to expand in the continent.

The deal gives Aurobindo "personnel, commercial infrastructure, products, marketing authorizations and dossier licenses" in France, Italy, Portugal, Netherlands, Belgium, Spain and Germany. The Hyderabad-based firm has been expanding its presence iunthe latter two countries and the UK since 2006 and the Actavis deal will it with "a top 10 position in several key markets".

Although these businesses are currently loss-making, Aurobindo says it expects them to return to profitability "in combination with its vertically-integrated platform and existing commercial infrastructure". Net sales for the acquired businesses should come in at around 320 million euros in 2013. V Muralidharan, head of European operations, said "we have been clear about our intention to focus on growth initiatives in Europe and international markets".

Sigurdur Oli Olafsson, president of Actavis Pharma, said the value created by the commercial operations in these seven markets "will be better maximised by Aurobindo, which will gain scale, additional products and enhanced competitive market share position". Actavis will now "focus management time and resources to support accelerated investment in driving faster growth of other markets, including central and eastern Europe and southeast Asia.

The companies will also enter into a long-term strategic supply arrangement.