Watson to Divest Ownership in Taiwan Company

Watson Pharmaceuticals has signed an agreement to divest its equity ownership position of approximately 31 percent of ScinoPharm Taiwan.

The transaction is subject to the parties obtaining approvals from various government agencies in Taiwan, as well as other customary closing conditions.

Assuming that 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, the company will sell its entire holdings for net proceeds of approximately US$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 business purposes.