Watson and Andrx merge to create US's third largest speciality pharma company

Watson Pharmaceuticals, headquartered in California, US, plans to acquire Andrx Corporation, of Florida, for a total price of around $1.9bn.

Andrx employs some 1,700 people in the development of new drugs, drug delivery technologies and generic products. The merger will create the third largest generic pharmaceutical company in the US, based on prescriptions dispensed. Watson also expects to make savings from synergies, largely from reduced selling, general and administrative expenses.

Both boards of directors have approved the transaction but the deal is subject to approval by Andrx stockholders and the US regulatory authorities. It is expected to be completed within six months.

The combined company will have more than 60 Abbreviated New Drug Applications in its pipeline and will have three operating divisions: brands, generics, and distribution. Anda, Andrx's generic distribution business, will operate as an independent division.