Watson now third largest generics company with Actavis acquisition

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Watson now third largest generics company with Actavis acquisition

Generics/News | Posted 27/04/2012 0 Post your comment

Watson Pharmaceuticals (Watson) has confirmed a definitive agreement to acquire privately-owned generics firm Actavis for an upfront payment of Euros 4.25 billion. The acquisition of Actavis makes Watson the third largest generics company in the world, with US$8 billion in combined revenue expected during 2012.

Actavis, which was formerly an Icelandic group headquartered in Switzerland, has a commercial presence in more than 40 countries and markets with more than 1,000 products globally. The company has approximately 300 projects in its development pipeline and manufactured more than 22 billion pharmaceutical doses in 2011. Actavis has more than 10,000 employees worldwide and had 2011 revenues of approximately US$2.5 billion.

The move more than doubles Watson’s international access and further expands US-based Watson’s presence in Europe, after its 2009 acquisition of the Arrow group and May 2011 acquisition of Greek generics maker Specifar [1]. The move will also strengthen Watson’s position in ‘exciting emerging growth markets, including Central and Eastern Europe and Russia’ according to Watson’s President and CEO, Mr Paul M Bisaro.

Mr Claudio Albrecht, Executive Chairman and CEO of Actavis said, ‘The two companies are an ideal complementary fit that will enable the combined company to enhance its position among the industry leaders. Additionally, together Watson and Actavis will be well placed in the fast-paced and dynamic biosimilars market.’

The transaction achieves Watson’s stated strategic objectives of expanding in key markets, entering new, growing markets and diversifying its business into a truly global company where approximately 40% of generics revenues will come from outside of the US. The combined company will hold a top three position in 11 markets and a top five position in 15 markets.

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Reference

1. GaBI Online - Generics and Biosimilars Initiative. Watson buys Greek generic maker Specifar [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2012 Apr 27]. Available from: www.gabionline.net/Pharma-News/Watson-buys-Greek-generic-maker-Specifar

Source: Actavis, Watson