Watson Pharma (WPI) May Pay $6B for Mysterious Swiss Drug Maker
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According to the WSJ, Watson Pharma (NYSE: WPI) will announce the acquisition of Actavis for about €4.5 billion ($5.92 billion) on Wednesday. The price values Watson's Swiss rival at 14 times to 15 times EBITDA, a little more rich than the 10 times to 12 times EBITDA valuation in recent industry takeovers.
Actavis generated about €300 million in EBITDA for 2011.
Looking at Actavis' website, its hard to see what's in development. In terms of current offerings, Actavis offers this bit of info: "Actavis’ broad product portfolio of over 830 products encompasses all of the major therapeutic areas and formulations. In addition to tablets and capsules, Actavis sells injectables, suspensions, infusions, suppositories, gels, syrups, creams and ointments."
Watson competes in the generic market against such names as Teva Pharma (Nasdaq: TEVA), Novartis' (NYSE: NVS) Sandoz, and Mylan (Nasdaq: MYL).
Last year, Watson spent €400 million for Greek drug maker Specifar Pharmaceuticals SA and $387 million for a unit of Strides Arcolab Ltd.
Shares are down about 2.5 percent Tuesday.
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Actavis generated about €300 million in EBITDA for 2011.
Looking at Actavis' website, its hard to see what's in development. In terms of current offerings, Actavis offers this bit of info: "Actavis’ broad product portfolio of over 830 products encompasses all of the major therapeutic areas and formulations. In addition to tablets and capsules, Actavis sells injectables, suspensions, infusions, suppositories, gels, syrups, creams and ointments."
Watson competes in the generic market against such names as Teva Pharma (Nasdaq: TEVA), Novartis' (NYSE: NVS) Sandoz, and Mylan (Nasdaq: MYL).
Last year, Watson spent €400 million for Greek drug maker Specifar Pharmaceuticals SA and $387 million for a unit of Strides Arcolab Ltd.
Shares are down about 2.5 percent Tuesday.
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