Under the terms of the agreement, Watson will acquire all of the outstanding shares of Andrx common stock for a cash amount of $25 per share. The boards of directors of both companies have unanimously approved the transaction.
“The combined assets, product portfolio, and capabilities of the two companies position us strongly for the highly competitive pharmaceutical market,” said Thomas Rice, Andrx’ CEO. “Andrx’ manufacturing, R&D, controlled-release technology, distribution network, and employees, in combination with Watson’s excellent team and capabilities, create a significant vertically integrated company in the specialty pharmaceutical industry.”
“The Andrx transaction significantly supports our long-term goal of expanding our existing product portfolio and pipeline, while strengthening Watson’s position in high value, specialized sustained-release technology,” added Dr Allen Chao, Watson’s chairman and CEO. “The combined revenue stream will fuel further product development and sales, while allowing Watson the flexibility and financial resources to continue building its specialty pharmaceutical business through internal product development and product in-licensing.”
Consummation of the merger is subject to the satisfaction of certain customary conditions, including approval by Andrx’s stockholders. Dates for closing the acquisition and for Andrx’ stockholders’ meeting to vote on the merger have not yet been determined.