Under the terms of the agreement, Watson will acquire the portfolio of products for an upfront payment of $36 million and will make additional payments to Teva when certain milestones are met on the development-stage products. Teva will supply the products to Watson under a manufacturing and supply agreement until manufacturing is transferred to Watson or a third party.
The closing of the product acquisition is contingent upon the consummation of Teva’s merger with Barr. The portfolio of products consists of 17 products, including 15 FDA-approved products and two development-stage products.
Paul Bisaro, president and CEO of Watson, said: “These products represent a sound complement to our extensive generics portfolio. We anticipate these new generics will have immediate value that we will begin to realize in early 2009.”