Watson boosts generics portfolio from Teva/Barr
Executive Summary
Watson will acquire a portfolio of generics being divested as part of the Teva/Barr deal, pending its consummation, for an upfront purchase price of $36 million. The portfolio includes 15 FDA-approved products, notably cyclosporine capsules and liquid; desmopressin tablets; glipizide/metformin tablets; mirtazapine orally disintegrating tablets; and metoclopramide tablets - as well as two in development. Under the terms of the agreement, Watson will make additional payments to Teva as development-stage products progress and obtain the products under a manufacturing and supply agreement from Teva until manufacturing is transferred. The deal does not appear to contain any oral contraceptives, which are among the most coveted assets that Teva and Barr could have to divest (1"The Pink Sheet," Aug. 25, 2008, p. 21). While it remains unclear whether the merger firm will have to pare down its portfolio of OCs, it's unlikely that any would go to Watson, which spun off some of those products to Teva as part of its 2006 acquisition of Andrx (2"The Pink Sheet" DAILY, May 5, 2006)