Apotex is entering a new phase as a public company after completing a $1.3-billion IPO and debuting on the Toronto Stock Exchange. The Canadian pharmaceutical company is looking to build on its generics foundation while expanding into higher-growth areas including biosimilars, specialty generics and international markets.
BNN Bloomberg spoke with Jeff Watson, president and CEO of Apotex, about the company’s growth strategy, upcoming product launches and plans to capitalize on opportunities created by patent expirations and rising demand for affordable medicines.
Key Takeaways
- Apotex plans to use most of its IPO proceeds to reduce debt while maintaining flexibility to support future growth initiatives.
- The company is expanding beyond traditional generics through increased investment in biosimilars, specialty generics and branded health products.
- Management sees significant opportunities from upcoming patent expirations in Canada and the United States, which could support future generic drug launches.
- Apotex expects growth from both North American and international markets, with particular focus on Canada, the U.S., Mexico and Latin America.
- Investors should watch the company’s product launch pipeline, international expansion efforts and ability to generate stable cash flows as a newly public company.
Read the full transcript below:
LINDSAY: Generic drug manufacturer Apotex made its debut on the TSX last Wednesday. It was the largest IPO on the TSX in five years, raising about $1.3 billion in gross proceeds. Let’s get more now from Jeff Watson, president and CEO of Apotex. Great to have you join us. Good morning.
JEFF: Yes, great to be here with you.
LINDSAY: So, how will Apotex deploy the more than $1 billion that was raised?
JEFF: Well, most of it will be deployed against debt to continue to furnish growth in the future. So, yeah, we’re quite excited about these next steps for the company and see a very strong pathway as we look forward on our growth profile.
LINDSAY: What are those next steps like when you’re talking about growth over the next two to three years? What are some of the key drivers you’re focused on?
JEFF: The key drivers are really continuing to build out our capabilities, where we have found great strength in over 50 years operating as a generic company, manufacturing and developing conventional generics. So we’ll continue to build out on the platform of our business where we see growth, but we’re also now building into other lines of business, looking at products like biosimilars and specialty generics. So we’re expanding our line of products in Canada, where we have been participating through the years in those, but I would say just a greater level of focus and opportunity there as we build those out, and we’re actively executing on that strategy now.
LINDSAY: What does being a public company do for you, particularly within those growth plans? Does that change your expansion strategy at all?
JEFF: Well, I think it stays within our strategy. It certainly gives us greater levels of opportunity and momentum to capital. We see greater opportunities with the profile of the company as well, giving us profile as we look at our partners. But essentially, prior to this IPO, we had our strategy in place. We’ve been building out our lines of business, so we’re actively in place in terms of how we’re going to be growing through our core market here in Canada, into the U.S. and internationally. So I would say it just gives us greater profile, gives us some momentum and certainly gives us access to capital as we look down the road for future plans.
LINDSAY: Okay, so you’re looking to grow in other markets. Where do you see the most opportunities moving forward? Is it still the North American markets or international markets?
JEFF: We think North America has been our base. We continue to focus strongly on Canada. So if you think about our portfolio in Canada, we think about it kind of being wide and deep in terms of how we develop our products, with over 600 products here in Canada. Our second core market, we’ve been in the U.S. for 30-plus years, so we’ll continue to be very targeted in our approach and very selective as we look at the products there. But we also see great opportunities in the international markets as well. We’ve played a fairly significant part in countries like Mexico and Latin America, and we’ll continue to invest there. So we do see significant opportunities in our international markets as we move forward over the next five years.
LINDSAY: I think you touched on some of the new generic drugs that are in the pipeline, but I’m wondering if you can go into more detail about some of those and some of the generic drugs that you’re excited about coming up.
JEFF: Well, we see some of the complex drugs. We see the portfolio expanding, for example, in our biosimilar portfolio here in Canada. We see opportunities there. We’ve been working actively there. We also think of specialty generics. We’ve just recently launched our GLP-1 product here in Canada. That would be considered a specialty generic as well. So I think you could see more of those types of products continuing to launch and build out, and we will continue to invest and launch products in our consumer brand business, CanPrev, as well.
LINDSAY: Are you seeing any kind of regulatory challenges in generics right now, or how are you navigating any price pressures or challenges you’re seeing?
JEFF: Well, I think the challenges in terms of bringing products to market and executing on your portfolio are always there. I think, if anything, we see certain heightened sensitivity from our local markets where we compete. Certainly, pharmaceutical supply is top of mind for governments and making sure that their domestic industries are investing and thriving. So I would say, if anything, we’re seeing a greater sense of collaboration and understanding, both from policymakers and from industry, trying to work together to make sure that we continue to invest in the market, continue to launch products and have a thriving healthcare industry here in Canada. And certainly, I would think that’s shared abroad and also in countries like the U.S. as well.
LINDSAY: Why do you think investors are interested in generic drug manufacturers specifically right now?
JEFF: Well, I think in our case, in the Apotex case, we have strong cash flows, we have good potential for growth. If we think about the next five years and look at the patents that are rolling off in industry, we’re entering a window of time here and in the U.S. where we see a loss of exclusivity. So there’s lots of opportunity in conventional generics. Once again, stable growth for a company like Apotex as well. I mean, it’s been our core competency for 50-plus years. We’ve been formulating and developing products right here in Canada for Canadians, and we’ve been expanding from our base here. So I think that makes it a very attractive proposition for investors as we move forward.
LINDSAY: There are more than 100 life sciences companies listed on the TSX and TSX Venture Exchange. Where do you think Apotex fits in that landscape?
JEFF: Well, I think we see our scale coming in, and we see exciting opportunities. So once again, we’re a known, I would say iconic, brand that’s been operating here in Canada for, like I said, five-plus decades. And I think as we fit in, we just see ourselves growing through that. And I would see Apotex moving into more of a position of a healthcare champion here in Canada as we continue to invest and build out the lines of business that I’ve been referring to, in terms of greater opportunities with specialty generics, biosimilars and other branded parts of the portfolio. So I think we’ll continue to find our place as we develop our strategy and develop these other profiles of products.
LINDSAY: So I guess looking forward, then, what metrics should investors focus on over the next 12 to 24 months to see whether the company is succeeding now that it’s public?
JEFF: Well, I think they’re going to see strong growth. I think we will be launching products. We have an active launch calendar coming up in the next couple of years. I think the metrics should be around the products in our launch calendar, and they’ll see products launching consistently. I think they’re going to see stable cash flows coming from the company and just lots of activity as we start to expand further into the U.S. and into international markets as well. So I would say stay tuned on our launch calendar. We feel very, very comfortable and well-positioned for the next five years.
LINDSAY: Okay, Jeff Watson, president and CEO of Apotex. Appreciate your time. Thanks for joining us.
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This BNN Bloomberg summary and transcript of the June 16, 2026 interview with Jeff Watson are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
