Pharma BD Deal Intelligence

Watson Pharmaceuticals (Actavis Inc.) / Andrx Corporation

2006 · Acquisition/Merger · $1.9B · Complete

CALLED IT — OFF BY 2

Andrx made Watson the #3 US generics player, but a $497.8M IPR&D writedown and forced FTC divestitures blunted the near-term payoff before Watson moved on to bigger deals (Actavis 2012, Allergan 2015)

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The coverage arc

Mar 13, 2006 Associated Press (via Vail Daily) Neutral

Andrx shares rose 10.65% while Watson fell 3.06%; Standard & Poor's placed Watson on negative CreditWatch, citing concerns about Andrx's pending FDA…

Oct 31, 2006 Federal Trade Commission Bearish

The FTC challenged the deal over likely competitive harm in 13 generic drug markets and required divestitures before clearance, capping Watson's value capture.

Nov 06, 2006 BioSpace Neutral

On close, Watson became the #3 US generics company by prescriptions, with 66 pending ANDAs and a $30M annual synergy target - largely from corporate…

Source summaries from our enrichment pipeline; follow links for originals.

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Generic pharma, sustained-release drug delivery; $25/share all-cash

Did it work? Outcome assessment

Andrx made Watson the #3 US generics player, but a $497.8M IPR&D writedown and forced FTC divestitures blunted the near-term payoff before Watson moved on to bigger deals (Actavis 2012, Allergan 2015)

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Watson Pharmaceuticals (Actavis Inc.) / Andrx Corporation (this deal)2006$1.9B65
Watson Pharmaceuticals (Actavis Inc.) / Actavis plc2012$5.9B97
Watson Pharmaceuticals (Actavis Inc.) / Arrow Group2009$1.8B85
Watson Pharmaceuticals (Actavis Inc.) / Amarin Development AB (Amarin Corp subsidiary)2003$150M70
Watson Pharmaceuticals (Actavis Inc.) / Schein Pharmaceutical Inc.2000$674M65
Watson Pharmaceuticals (Actavis Inc.) / Eden Biodesign Limited2010$15M63
Watson Pharmaceuticals (Actavis Inc.) / Andrx Corporation2007$1.9B62

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