Actavis has announced that it will acquire Warner Chilcott in a deal worth $8.5bn (£5.8bn). If successfully completed, the transaction will create a company with approximately $11 billion in combined annual revenue, and the third-largest U.S. specialty pharmaceutical company with approximately $3 billion in annual revenues focused on core therapeutic categories of Women’s Health, Gastroenterology, Urology and Dermatology. The new firm will be headquartered in Dublin.
The proposed transaction has been unanimously approved by the Boards of Directors of Actavis, Inc. and Warner Chilcott plc, and is supported by the management teams of both companies. This move was expected, as the companies had previously announced that they were in discussion. It also comes at a time when Actavis had also been the subject of speculation over being acquired, a possibility that has likely been removed by this deal.
“We have set as our strategic corporate objective to build a leading global specialty pharmaceutical company,” said Paul Bisaro, President and CEO of Actavis. “The combination of Actavis and Warner Chilcott creates a strong specialty brand portfolio focused in therapeutic categories with strong growth potential, and is supported by a deep pipeline of development programs.”