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Pharmaceuticals Activis buys specialist drugmaker Forest Labs

February 19, 2014

Reuters



Generic drugmaker Actavis has said it will buy Forest Laboratories for about $25bn in cash and stock, expanding its portfolio of speciality pharmaceuticals.

Dublin-based Actavis said it would pay the equivalent of $89.48 per share, representing a premium of 25% to Forest's closing price on Friday.

Actavis shares rose nearly 8% in premarket trading yesterday as investors backed the latest step in the company's strategy of acquiring speciality drugmakers to boost profit margins and sales. Forest shares jumped nearly 30%.

The deal is a major payday for activist investor Carl Icahn, the second-largest shareholder at Forest, who helped bring about a management change at the company last year. In January, the company delivered quarterly financial results well ahead of analysts' expectations.

Actavis expects the deal to add to its profits in the double-digit percentages in 2015 and 2016, including about $1bn in tax and operating savings. Reuters



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Source: Guardian (UK)


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