ALPHARMA INC

ALPHARMA INC

Previous company name
A L PHARMA
Name change date
5/13/1996
Company Overview
Alpharma Inc, formerly known as A L Pharma is a multinational pharmaceutical company with global leadership positions in products for humans and animals. It develops, manufactures and markets pharmaceutical products for humans and animals. The company was founded in 1975 as A.L. Laboratories, Inc. and has its registered headquarters located in Fort Lee, New Jersey, United States of America. It is a publicly quoted company listed on the New York Stock Exchange under the ticker symbol ALO.
Alpharma organizes its business into three segments: active pharmaceutical ingredients, pharmaceutical products and animal health. The company’s active pharmaceutical ingredients segment is a leading producer of active pharmaceutical ingredients (APIs), specialised in fermented antibiotics. Its key products include Bacitracin, Polymyxin B, Vancomycin, Amphotericin B, and Tobramycin. This segment markets its products to pharmaceutical companies in the United States, Latin America, and Asia Pacific. Alpharma manufactures its products in Budapest, Hungary; Copenhagen, Denmark; and Oslo, Norway.
Alpharma’s pharmaceutical products segment has a growing branded franchise in the chronic pain market with morphine-based, extended-release Kadian brand. Its products are sold to wholesalers, chain drug stores, and distributors. The company is among the world’s leading producers of specialty pharmaceutical-grade bulk antibiotics.
The company’s animal health segment is a global leader in the development, manufacturing and marketing of more than 100 medicated feed-additive products that foster health in food-producing animals. It offers products with brands BMD, Aureomycin, Bovatec, and Avatec. Animal health’s broad line of medicated feed-additive products is internationally recognized for quality and efficacy in the prevention and treatment of disease in cattle, poultry and swine. It has several proprietary products and ranks first or second in target markets. This segment markets its products to poultry, cattle and swine integrators; feedmills and premix companies; and animal health distribution organizations in the United States, Europe, Asia Pacific and Latin America. It manufactures its products in the United States – Chicago Heights, Illinois; Longmont, Colorado; Salisbury, Maryland; Willow Island, West Virginia; and Van Buren, Arkansas.
Furthermore, Alpharma is committed to creating value for its customers, partners and investors by leveraging its knowledge and resources to drive growth-oriented innovation.
Business Summary
Alpharma Inc. is a global specialty pharmaceutical company that develops, manufactures and markets pharmaceutical products for humans and animals. As of April 2, 2008, the Company operated in two business segments: Pharmaceuticals and Animal Health (AH). The Company markets an extended release morphine sulfate pain medication sold under the trademark KADIAN, in the United States and a topical non-steroidal, anti-inflammatory (NSAID) patch product sold in the United States, under the trademark FLECTOR. The Company manufactures and markets animal health products, consisting primarily of medicated feed additives (MFAs) and water soluble therapeutics for production animals, principally poultry, cattle and swine. In April 2008, ALPHARMA, Inc. announced the divestiture of its Active Pharmaceutical Ingredients (API) business to 3i. On December 30, 2008, King Pharmaceuticals, Inc. acquired Alpharma Inc.
Description and history
Alpharma Inc. is a global specialty pharmaceutical company that develops, manufactures and markets pharmaceutical products for humans and animals. As of April 2, 2008, the Company operated in two business segments: Pharmaceuticals and Animal Health (AH). The Company markets an extended release morphine sulfate pain medication sold under the trademark KADIAN, in the United States and a topical non-steroidal, anti-inflammatory (NSAID) patch product sold in the United States, under the trademark FLECTOR. The Company manufactures and markets animal health products, consisting primarily of medicated feed additives (MFAs) and water soluble therapeutics for production animals, principally poultry, cattle and swine. In April 2008, ALPHARMA, Inc. announced the divestiture of its Active Pharmaceutical Ingredients (API) business to 3i. On December 30, 2008, King Pharmaceuticals, Inc. acquired Alpharma Inc.

During the year ended December 31, 2007, the Company conducted business in more than 80 countries. In April 2007, the Company acquired the assets of Shenzhou Tongde Pharmaceutical Co. Ltd (Tongde) in Shenzhou City, China, a manufacturer and supplier of zinc bacitracin for AH. In June 2007, the Company acquired certain assets of Yantai JinHai Pharmaceutical Co. Ltd. located in Yantai City, Shandong Province.

Pharmaceuticals

The Pharmaceuticals business is focused primarily on the prescription pain management market in the United States. KADIAN accounted for approximately 23% of the Company’s total revenues in 2007 and all of Pharmaceuticals’ revenues. In February 2007, it received United States Food and Drug Administration (FDA) approval for KADIAN 200 milligram dosage strength and KADIAN 10 milligram dosage strength. In January 2008, the Company launched FLECTOR Patch in the United States. FLECTOR Patch delivers anti-inflammatory and analgesic effects of diclofenac epolamine and is indicated for the topical treatment of acute pain due to minor strains, sprains, and contusions.

The Company’s Pharmaceuticals business is working on the development of new pain products, which would include a technology designed to deter abuse. During 2007, Pharmaceuticals reported positive results from its Phase III double-blind, randomized, placebo-controlled pivotal efficacy trial for EMBEDA, its investigational abuse deterrent extended-release morphine product. During 2007, the Company expanded its Pharmaceuticals’ product pipeline by licensing the United States rights to ketoprofen in TRANSFERSOME gel, a prescription topical NSAID in Phase III clinical development, from IDEA, a biopharmaceutical company located in Munich, Germany.

The Company competes with King Pharmaceuticals Inc., Purdue Frederick, Endo Pharmaceuticals and Pfizer, Inc.

Animal Health

The Company’s principal animal health business is based on a portfolio of anti-infective animal health products that are added to the feed and water of livestock and poultry. This market is comprised of three primary categories: antibiotics, anticoccidials and antibacterials. Its MFAs and water-soluble products are used to prevent and/or treat diseases and maintain health in poultry, swine and cattle. The Company is a supplier of bacitracin and chlortetracycline for use in animal feeds. Its major AH antibiotic products include Albac, BMD, Chlormax and Chlormax-combination products, and Aureomycin and Aureomycin-combination products. Albac and BMD are bacitracin-based MFA used to prevent and/or treat diseases, maintain health and/or improve feed efficiency in poultry, cattle and swine. Chlormax and Chlormax-combination products, and Aureomycin and Aureomycin-combination products, which are feed-grade antibiotics containing chlortetracycline used in combination with an antibacterial to prevent and/or treat diseases, maintain health and/or improve feed efficiency in poultry, cattle and swine. During 2007, AH’s class of products containing chlortetracycline (CTC products) accounted for approximately 16% of the Company’s total revenues.

Anticoccidials are used to prevent coccidiosis, a condition caused by an intestinal parasite that affects growth in poultry and cattle. The Company’s major products include Bio-Cox and Cygro, which are MFAs used to prevent and control coccidiosis in poultry; Bovatec and Avatec, which are MFAs used to prevent and control coccidiosis in cattle and poultry, and to maintain health and improve feed efficiency in cattle; Deccox, which is an MFA used to prevent and control coccidiosis in poultry, cattle and calves; Robenz and Cycostat, which are used to prevent coccidiosis in poultry and rabbits, and Rofenaid, which are used to control disease in poultry. Antibacterials include 3-Nitro, an MFA used to treat disease and improve feed efficiency in poultry and swine, and Histostat, an MFA used to prevent disease in chickens and turkeys. In addition to the Company’s antibiotic, anticoccidial and antibacterial products, it also sells water soluble vitamins, minerals and electrolytes that are used as nutritional supplements for poultry, swine and cattle.

The Company produces its Animal Health products in several manufacturing facilities. BMD is produced and blended at AH’s Chicago Heights, Illinois facility. Albac is manufactured at the Shenzou, China facility and the Oslo, Norway facility, which is managed by API. A small volume of AH’s products are manufactured at AH’s Yantai, China facility. The majority of soluble antibiotics and vitamins are formulated in AH’s Longmont, Colorado facility. Feed grade CTC is produced at AH’s Willow Island, West Virginia facility in addition to being purchased from foreign suppliers. Bio-Cox is blended in AH’s Van Buren, Arkansas facility, as well as at a third-party location, and Avatec and Bovatec are blended at the Salisbury, Maryland facility, as well as at a third-party location. The 3-Nitro product line is manufactured using the Company’s technology at a third-party facility.

The Company competes with Eli Lilly and Company (Elanco), Pennfield, Phibro Animal Health and Huvepharma.

Founded as A.L. Laboratories, Inc

Business Line
Develops, manufactures and markets pharmaceutical products for humans and animals
Subsidiary
SHENZHOU TONGDE PHARMACEUTICAL CO LTD
Advisor
BDO SEIDMAN
IPO date
2/1984
US SIC Code
2611
Company Address
440, Route 22 East

City province or state postal code
08807, BRIDGEWATER, NJ
Phone: +1 908 566 3800
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.alpharma.com