Update: Andrx accepts $1.9B offer from Watson

In what is seen as further consolidation of the generic drugs sector, Watson Pharmaceuticals says that it has reached a definitive merger agreement to acquire all the outstanding shares of common stock of fellow US firm Andrx Corp, in an all-cash transaction for $25.00 per share, or a total price of approximately $1.9 billion. The news sent Andrx' shares leaping 9.7% to $23.69, while Watson slipped 1.7% to $29.04.

The most recent large generics acquisitions were those of Hexal and Eon by Swiss drug company Novartis, for about $8.4 billion, and Israeli firm Teva Pharmaceutical Industries' $7.4 billion takeover of IVAX (Marketletters passim), with the latter combination now becoming the world leader in the sector.

Andrx, whose capabilities complement those of Watson, is considered a leader in formulating difficult-to-replicate products and developing "best-in-class" drug delivery technologies, offering a unique portfolio of difficult-to-replicate generic products, says Watson.