Watson Pharmaceuticals to buy Swiss rival Actavis for $5.60 billion

US generic drug maker Watson Pharmaceuticals Inc yesterday agreed to buy Swiss rival Actavis, for around $5.60 billion (€4.25 billion), in order to expand in Europe.

The proposed acquisition will lift Watson the world's third-biggest generic drugmaker with expected 2012 revenue of $8 billion.

Watson, which currently is the fifth-largest pharmaceutical company in the US, will pay €4.25 billion upfront and up to 5.5 million Watson shares, valued at around €250 million, if Actavis reaches specific milestones.

Actavis, which itself has made 25 acquisitions since its founding in 1965, had 2011 revenues of about $2.5 billion.

Actavis has one of the broadest product portfolios and strongest pipelines in the generics industry. It has around 1,000 medicines present on the market and registered in more than 70 countries.

The Zug, Switzerland-based company operates in about 40 countries and has modern development and manufacturing facilities in Europe, the US and Asia producing a variety of medicines in different formulations including tablets, capsules, injectables, steriles, suppositories, sprays, powders, oral liquids and semi-solids.