Watson Pharmaceuticals to acquire Actavis and become world’s 3rd largest generic drug co.
The pharmacy area of a Wal-Mart store in Mount Prospect, Ill., on Sept. 21, 2006.
Watson Pharmaceuticals Inc. is acquiring Swiss generic drug maker Actavis Group for as much as 4.5 billion euros ($5.94 billion), Dow Jones Newswires reported. The deal will make Watson, based in Parsippany, NJ, the world’s third largest manufacturer of generic drugs, behind Israel’s Teva Pharmaceutical Industries Ltd. and Swiss drug maker Novartis AG's Sandoz unit.
Watson said it would pay 4.25 billion euros up front and up to 5.5 million Watson shares, worth 250 million euros, if Actavis hits specific profit goals for the year, Dow Jones Newswires reported.
“The acquisition of Actavis will create the third largest global generics company, substantially completing Watson’s expansion as a leading global generics company,” Paul M. Bisaro, CEO of Watson, said in a statement, according to the New York Times. “Actavis dramatically enhances our commercial position on a global basis and brings complementary products and capabilities in the United States.”
With operations in more than 40 countries and 10,000 employees worldwide, Actavis will boost Watson’s profile abroad, particularly in Europe, the New York Times reported. Watson expects its international sales of generic drugs to account for 40 percent of total sales after the takeover.
The deal is the latest in a bit of a European buying spree by American companies this year.
More from GlobalPost: UPS buys TNT Express
Including Actavis, US purchases of European companies so far in 2012 add up to $39 billion, a 39 percent increase over the same period in 2011, according to the data provider S&P Capital IQ, the New York Times reported.
More from GlobalPost: Meet the people behind Turkey's 'miracle'
The story you just read is accessible and free to all because thousands of listeners and readers contribute to our nonprofit newsroom. We go deep to bring you the human-centered international reporting that you know you can trust. To do this work and to do it well, we rely on the support of our listeners. If you appreciated our coverage this year, if there was a story that made you pause or a song that moved you, would you consider making a gift to sustain our work through 2024 and beyond?