Pharma BD Deal Intelligence

Watson Pharmaceuticals (Actavis Inc.) / Schein Pharmaceutical Inc.

2000 · Acquisition/Merger · $674M · Complete

CALLED IT — OFF BY 18
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The coverage arc

May 25, 2000 The Pharma Letter Bullish

Watson Pharmaceuticals announced plans to buy Schein Pharmaceutical in a two-step transaction valued at $674 million, creating a company with combined sales of…

Aug 01, 2000 Pharmaceutical Online Neutral

Watson completed its $19.50/share tender for ~77.9% of Schein and paid down ~$190M of Schein bank debt, with the back-end merger to close in September 2000.

Sep 01, 2000 Wikipedia (Watson Pharmaceuticals corporate history) Bullish

The Schein acquisition more than doubled Watson's size and lifted full-year 2000 revenue above $1 billion, establishing Watson as a top-tier US generics…

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Watson Pharmaceuticals announced a two-step acquisition of Schein Pharmaceutical valued at ~$674M (cash tender at $19.50 plus stock-merger second step). Bayer Corp. and Schein family controlled 74% and tendered. Created a $1.2B generics business. Closed Sep 2000.

Did it work? Outcome assessment

Strategic verdict
Partially Achieved
Financial impact
Impaired/Written Down
Pipeline outcome
Mixed

Key facts

Related deals — scored

DealYearValueOutcome
Watson Pharmaceuticals (Actavis Inc.) / Schein Pharmaceutical Inc. (this deal)2000$674M65
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.) / Andrx Corporation2006$1.9B65
Watson Pharmaceuticals (Actavis Inc.) / Eden Biodesign Limited2010$15M63
Watson Pharmaceuticals (Actavis Inc.) / Andrx Corporation2007$1.9B62

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