Watson Pharmaceuticals has completed its EUR 4.25 billion ($5.4 billion) acquisition of the Actavis Group. The combination creates the world’s third largest generic-drug pharmaceutical company, with anticipated pro forma combined 2012 revenues in excess of $8 billion, according to Watson.
Watson will take the Actavis name, effective in 2013. “When we announced the proposed acquisition of Actavis in April 2012, we immediately instituted an extensive and accelerated review of our global brand position and naming equities,” said Paul Bisaro, president and CEO of Watson, in an Oct. 31, 2012, company press release. “A pioneer at the dawn of the US generic industry in 1984, the Watson corporate name was never registered globally. As we initiated our global expansion strategy in 2009, it became clear that we could not establish a single, unified market presence under the Watson brand... Adopting the Actavis name on a global basis for our generics, brands, and biosimilars businesses was a logical and cost-effective solution,” he said.
The newly combined company now employs 17,000 people. Watson expects to realize $300 million in annual cost-synergy savings from the Actavis acquisition within three years. These synergies are comprised of selling, general and administrative expenses, R&D, corporate, purchasing, and raw-material supply savings. Watson plans to host Investor Day 2013 in January to provide a more comprehensive review of the combined business. The combined company has operations in more than 60 countries, with approximately 40% of its revenues coming from outside of the US.
On a product basis, the combined company has a global product portfolio of more than 750 molecules offered in more than 1700 different combinations and dosage forms. The US pipeline includes approximately 180 abbreviated new drug applications pending at FDA, including 47 first-to-files, of which 30 are exclusive, according to the company. Outside the US, the current pipeline includes more than 2000 marketing authorizations pending approval and, globally, more than 600 new development projects are underway covering multiple dosage forms, according to the company. On a manufacturing basis, the combined company has the ability to manufacture more than 40 billion dosages worldwide for solid dosage, modified release, patch, gel, liquid, semisolid, and injectable products.