NEW YORK (AFX) - Iceland-based generic drug maker Actavis Group HF still plans to snag the title of the world's third largest maker of generic drugs. But without the acquisition of Pliva d.d., the company will need to wait a little longer, and accomplish it with smaller acquisitions.

In an interview, Actavis Chief Executive Robert Wessman said Pliva officially took its offer of 795 kuna -- about $136 -- per share for the Croatian drug maker, when Barr Pharmaceuticals Inc. bid 820 kuna, or about $142, per share earlier in the month.

'We're not going to go to 820 kuna,' Wessman said, dismissing the price as being too high.

Actavis, however, still reserves the right to re-enter bidding should Barr not close the deal. As for the 21 percent of outstanding Pliva shares Actavis already owns, Wessman prefers to keep his cards close to his chest and see how Barr's tender offer plays out. Barr and Actavis have been engaged in a bidding war for Pliva over the past several months.

Even without Pliva, Wessman said Actavis will continue its aggressive acquisitions strategy. The company booked sales of 57 million euros ($57.3 Million) in sales in 1999, and most recently booked sales of 1.4 billion euros, or roughly $1.78 billion. Actavis has acquired more than 20 companies in the past six years.

The goal is to achieve critical mass and become one of the Top 3 generic drug makers in the world. An acquisition of Pliva would have put Actavis very close to that mark, Wessman said.

Israel-based Teva Pharmaceutical Industries Ltd. became the world's largest generic drug maker following its acquisition of Ivax Corp. earlier in the year, and the generics unit of Swiss drug maker Novartis AG, Sandoz, ranks a close second. Mylan Laboratories Inc. and Watson Pharmaceuticals Inc. rank as No. 3 and No. 4, respectively. Actavis currently ranks as the world's eighth largest generic drug maker.

Securing the No. 3 slot will allow the company to fully consolidate its operations, and look toward listing itself on an exchange other than the Iceland Stock Exchange, Wessman said.

Without Pliva in the picture, the company is looking at a number of other opportunities, mostly in the more profitable Central and East Europe markets, and the under-penetrated Italian and French markets.

Wessman said he was in New York this week at a UBS investment conference to continue building relationships with a number of banks, so it can respond quickly to potential acquisitions targets.

'The generics industry is consolidating fast,' Wessman said. 'In a few years you'll see five to seven players controlling the generics market.'

Visiongain, a market research firm, estimates the worldwide generic drug market at $45 billion, and growing at an annual rate of 14 percent. According to the Generic Pharmaceutical Association, $22.3 billion of that market is in the U.S.

Actavis, which specializes in neurology and cardiovascular drugs, sells about 650 kinds of medication, with another 300 candidates in the pipeline, and 100 of those targeted for the U.S. market. Wessman said the company filed 30 applications with the Food and Drug Administration this year and plans to file slightly more than that next year.

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