Watson Sells Minority Shareholding Position in Moksha8; Expands Development and Commercialization Agreement
PARSIPPANY, N.J., Oct. 22, 2012 /PRNewswire/ -- Watson Pharmaceuticals, Inc. (NYSE: WPI) today announced that it has sold its minority ownership position in Moksha8, Inc. ("Moksha8"), a leading pharmaceutical company in Latin America, for approximately $47 million. Watson acquired a minority ownership stake in Moksha8 in 2010 after investing $30 million in the company as part of Moksha8's Series 3 financing.
Watson also simultaneously announced that it is expanding its ongoing sales and marketing collaboration with Moksha8 by granting a license to Moksha8 for five branded generic CNS products to be developed for the Brazil and Mexico markets in exchange for defined milestones and sales royalties. Watson will continue to retain generic marketing rights in each market for all products licensed to Moksha8.
"As a larger, more diversified global company, following the planned acquisition of Actavis, we are realigning our corporate structure and ownership of assets in jurisdictions around the world," said Fred Wilkinson, President of Global Brands and Biosimilars at Watson.
"Moksha8 has been a powerful partner in establishing our presence in Latin America and we look forward to continuing the relationship as we pursue additional opportunities to expand Watson's overall presence in these markets."
In addition to Watson's ongoing marketing agreement with Moksha8, Watson conducts its business in Brazil through its subsidiary, Arrow Farmaceutica, which possesses local manufacturing capabilities in Rio de Janeiro and numerous marketing authorizations in process or on file in Brazil and Mexico. Watson plans to seek approval for several of its core Urology and Women's healthcare branded products in both Brazil and Mexico and intends to commercialize the products in this region once approval is obtained.
About Watson Pharmaceuticals, Inc.
Watson Pharmaceuticals, Inc. is an integrated global specialty pharmaceutical company. The Company is engaged in the development, manufacturing, marketing and distribution of generic pharmaceuticals and specialized branded pharmaceutical products focused on Urology and Women's Health. The Company is also developing biosimilar products in Women's Health and Oncology. Additionally, Watson distributes generic and branded pharmaceuticals through its Anda, Inc. distribution business. 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.
Any statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Watson's current perspective of existing trends and information as of the date of this release. Except as expressly required by law, Watson disclaims any intent or obligation to update these forward-looking statements. 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, the impact of competitive products and pricing; market acceptance of and continued demand for Watson's products; difficulties or delays in manufacturing; the difficulty of predicting the timing or outcome of regulatory agency approvals or actions, if any; and other risks and uncertainties detailed in Watson's periodic public filings with the Securities and Exchange Commission, including but not limited to Watson's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 and Watson's Annual Report on Form 10-K for the year ended December 31, 2011. Except as expressly required by law, Watson disclaims any intent or obligation to update these forward-looking statements.
SOURCE Watson Pharmaceuticals, Inc.