Watson acquires Uteron Pharma; confirms Opana patent challenge

US generic and specialty drugmaker Watson Pharmaceuticals (NYSE: WPI) says that it has completed the acquisition of Belgium-based Uteron Pharma for $150 million in cash up front, and up to $155 million in potential future milestone payments.

The acquisition of Uteron expands Watson's Global Brands pipeline of Women's Health products including two potential near term global commercial opportunities in contraception and infertility, and one novel oral contraceptive, projected to launch globally in 2018. Several additional products in earlier stages of development are also included in the acquisition. The company said the transaction is expected to be minimally dilutive to non-GAAP earnings in 2013 and 2014, and accretive in 2015.

"This is a strategic acquisition of a solid pipeline, sound development expertise and sufficient manufacturing capacity to generate value for shareholders within the next two years, and provide the potential of multiple global product introductions through the latter half of the decade," said Fred Wilkinson, president of Watson Global Brands and Biosimilars, adding: "We have structured the financials of the acquisition to reflect the immediate value of the late-stage pipeline, with approximately $45 million in near-term milestones and appropriately balancing the development risks and investments required to commercialize these assets, when compared to the longer-term opportunities.”