Actavis reportedly to be acquired by Watson; debuts generic Zomig

Icelandic generic drugmaker Actavis is said to be in talks to be acquired by US peer Watson Pharmaceuticals (NYSE: WPI) for as much as 5.5 billion euros ($7.3 billion), according to a Reuters report, citing a person with knowledge of the matter.

Watson made an unsolicited bid to closely held Actavis, which now operates out of Switzerland, said the person, who declined to be identified because the discussions are confidential. There are no other suitors at the moment and a deal may be weeks away, the person said.

Watson’s shares rose 8.8% to $63.69, making it the biggest riser in New York trading yesterday. Last month, Paul Bisaro, Watson’s chief executive, indicated he was in acquisitions and had earmarked around $6 billion for purchases that would boost the company’s generics business or its branded-drugs business.