Watson Signs Agreement to Divest Equity Interest in ScinoPharm
Intends to Use Proceeds to Support Business Development, General Business Purposes
MORRISTOWN, N.J., March 1 /PRNewswire-FirstCall/ -- Watson
Pharmaceuticals, Inc. (NYSE:WPI) today announced that it signed an
agreement on February 26, 2010 to divest its equity ownership
position of approximately 31% of ScinoPharm Taiwan Ltd. The
transaction is subject to the parties obtaining approvals from
various government agencies in Taiwan, as well as other customary
closing conditions. Assuming all closing conditions are met, Watson
expects the transaction to close during the first half of 2010.
Under the terms of the stock purchase agreement, Watson will sell
its entire holdings for net proceeds of approximately $94.0
million. The Company said that it intends to utilize the proceeds
to enhance its financial ability to execute future strategic
business development initiatives, as well as support other general
"Watson's relationship with ScinoPharm has been long and
beneficial. However, as we refocused our global business and
increased our own active pharmaceutical ingredient (API)
development and manufacturing capabilities, this relationship has
become less strategic for our long-term growth," said Paul Bisaro,
President and Chief Executive Officer of Watson.
Watson acquired an initial equity interest in ScinoPharm in 2004
as part of its initiative to increase access to sources of unique
APIs. In 2005 and 2006 Watson increased its investment, ultimately
resulting in ownership of approximately 31% of ScinoPharm. The
Company has previously accounted for its return on this investment
as part of its earnings on equity investments disclosures.
About Watson Pharmaceuticals, Inc.
Watson Pharmaceuticals, Inc. is a leading global specialty
pharmaceutical company. The Company is engaged in the development
and distribution of generic pharmaceuticals and specialized branded
pharmaceutical products focused on urology and women's health.
Watson has operations in many of the world's established and
growing international markets.
For press release and other company information, visit Watson
Pharmaceuticals' Web site at http://www.watson.com/.
Statements contained in this press release that refer to
nonhistorical facts are forward-looking statements that reflect
Watson's current perspective of existing information as of the date
of this release. For example, any statements in this press release
concerning the expected uses of proceeds of the transaction, the
anticipated closing date of the transaction, or other events
related to products or future products and Watson's strategic
initiatives and business plans are forward-looking statements. It
is important to note that Watson's goals and expectations are not
predictions of actual performance. Actual results may differ
materially from Watson's current expectations depending upon a
number of factors affecting Watson's business. These factors
include, among others, timely and successful consummation and
implementation of strategic initiatives; changes in the laws and
regulations; and such other risks and uncertainties detailed in
Watson's periodic public filings with the Securities and Exchange
Commission, including but not limited to Watson's annual report on
Form 10-K for the year ended December 31, 2009. Except as expressly
required by law, Watson disclaims any intent or obligation to
update these forward-looking statements.
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Source: Watson Pharmaceuticals, Inc.
CONTACT: Investors, Patty Eisenhaur, +1-973-355-8141; or Media,
Mayr, +1-973-355-8483, both of Watson Pharmaceuticals, Inc.
Web Site: http://www.watson.com/
Posted: March 2010