ZUG, Switzerland, May 20 (UPI) -- Swiss generic drug producer Actavis said it would buy U.S. rival Warner Chilcott for a deal valued at $5 billion.
It is an all-stock deal that provides a premium 5 percent on Warner Chilcott's closing price Friday. Actavis said in a release it agreed to pay 0.16 of a share for each Warner Chilcott share, which comes to $20.08 per share.
Actavis will assume Warner Chilcott's $3.5 billion long-term debt, as well, The New York Times reported.
"We have set as our strategic corporate objective to build a leading global specialty pharmaceutical company," Paul Bisaro, Actavis' chief executive, said in a statement.
Anecdotes back that up. Last month, talks to have Actavis sell itself to Valeant Pharmaceuticals collapsed. Meanwhile, the Actavis board turned down offers from others, including Mylan, a source told the Times.
Bisaro said Actavis and Warner Chilcott together "creates a strong specialty brand portfolio focused in therapeutic categories with strong growth potential."
"And [it] is supported by a deep pipeline of development programs," he said.
