US pharmaceutical manufacturer Actavis has agreed to buy Dublin-based Warner Chilcott in a deal worth US$8.5bn (£5.6bn) including debt.
When finalised, the deal will create a leading global specialist pharmaceutical company with approximately $11bn in combined annual sales. It will also become the third-largest US specialist pharmaceutical company with approximately $3bn in annual sales focused on women’s health, gastroenterology, urology and dermatology.
Paul Bisaro, President and CEO of Actavis, said: ‘The combination of Actavis and Warner Chilcott creates a strong speciality brand portfolio focused in therapeutic categories with strong growth potential, and is supported by a deep pipeline of development programmes.’
Bisaro added that joining together the two firms would provide a ‘substantial foundation to support the successful launch of new products over the next few years’, particularly in women's health. It also provides an expanded portfolio of specialist products that have the potential to be marketed outside North America.
Actavis and Warner Chilcott will be combined under a new company to be called Actavis, or a variant thereof, which will be incorporated in Ireland.
Upon completion of the deal, Warner Chilcott shareholders will own approximately 23% of the new company, which will be led by the current Actavis management team.
The combined company will have eight products in women’s health; six urology products; two gastroenterology products; one dermatology product, with another newly approved product ready for launch in July 2013; and a portfolio of more than 25 products in various stages of development.
More than $400m in cost savings are anticipated, the majority to be realised in 2014, the firms said.
The deal has been approved by the boards of both companies and should be finalised by the end of the year.
