Actavis CEO touts his acquisition strategy

Actavis CEO Brent Saunders told Forbes that the company's $66 billion deal of Allergan this past November wasn't a shortsighted move but part of a larger strategy that he dubs “growth pharma.” Saunders said that “the idea that to play in the big leagues you have to do drug discovery is really a fallacy. You have to do research, you have to be committed to innovation. I strongly believe that, but discovery has not returned its cost of capital.” He explains that Actavis will have the same capabilities of other large-cap drugmakers, like marketing and clinical trial capabilities, but that it will look to acquire assets from biotechs and universities rather than discover them in-house.