Watson Pharmaceuticals said Tuesday it has bought Strides Arcolab's generics unit Ascent Pharmahealth for 375 million Australian dollars ($393 million) in cash. Watson noted that following the deal, it "becomes the fifth largest generic pharmaceutical company in Australia" as well as "the largest generics company in Singapore and gains an established commercial base in Malaysia, Hong Kong, Vietnam and Thailand."
According to Watson, Ascent sells a portfolio of generics, brands, branded-generic and over-the-counter products in Australia, as well as branded-generics and OTC products in Southeast Asia. The company, which employs around 300 employees, had total sales of approximately 150 million Australian dollars ($157 million) in 2011. Watson noted that the deal is expected to be immediately accretive to earnings.
"We are committed to expanding our international commercial operations into geographies where we can capitalize on our existing assets and participate in growing and emerging markets," Watson CEO Paul Bisaro said, adding that the deal "complements our existing generic development and marketing capabilities."