Actavis announces $11bn deal for Warner Chilcott

Actavis has entered into a definitive agreement to acquire fellow healthcare company Warner Chilcott in a stock-for-stock transaction valued at around $8.5 billion (5.64 billion pounds).

The deal is expected to create a global specialty pharmaceutical company with combined annual revenue capabilities of approximately $11 billion and a focus on the women's health, gastroenterology, urology and dermatology markets.

By purchasing Warner Chilcott, Actavis will be able to significantly expand its portfolio, particularly in the women's health field, while its combined research pipeline will include more than 25 products in various stages of development.

The proposed transaction has been unanimously approved by the boards and management of both companies and is expected to close by the end of the year.

Paul Bisaro, president and chief executive officer of Actavis, said: "The combination is commercially and financially compelling and reshapes the specialty pharmaceutical universe by creating a powerful global competitor."

This comes after Watson Pharmaceuticals acquired Actavis last year and subsequently rebranded the combined organisation under the Actavis name in January 2013.