Actavis to acquire Forest Laboratories for $25 billion

Actavis has entered into a definitive agreement to acquire Forest Laboratories for a combination of cash and equity valued at approximately $25 billion, the companies have announced.

“On a pro forma combined basis for full year 2014, the combined company will have an approximately $2 billion [central nervous system] CNS franchise; gastroenterology [GI] and women’s health franchises valued at approximately $1 billion each; a cardiovascular franchise that generates approximately $500 million; and urology and dermatology/established brand franchises approaching $500 million a year in sales each,” according to a press release.

The combined company would anticipate annual revenue of more than $15 billion in 2015 if the transaction is completed, according to the release. The transaction, expected to be completed later this year, is subject to approval of both companies’ shareholders and regulatory approvals.

“Forest is a great fit with Actavis due to our strong legacy in branded specialty and primary care pharmaceuticals …,” Brent Saunders, JD, chief executive officer and president of New York-based Forest, said in the release. “The acquisition builds on our blockbuster line call strategy in CNS and GI and dramatically extends our reach beyond the US market. By joining forces with Actavis, we become more relevant to key physicians and customers through blockbuster franchises in CNS, women’s health, GI and urology, as well as Actavis’ global generic business.”

Paul Bisaro,JD, chairman and chief executive officer of Actavis, based in Dublin, Ireland, will lead the combined company. Saunders has agreed to join the Actavis board of directors, according to the release.

Once combined, the company will have “emerging and sustainable portfolios” in infectious disease, respiratory, cystic fibrosis and dermatology therapeutic categories, the release said.