NEW YORK (AP) — Watson Pharmaceuticals says it is buying generic drug maker Arrow Group for $1.75 billion in cash and stock. Watson of Morristown, N.J., says it is getting a promising drug candidate pipeline and access to new markets in the deal. It says the combined company will have about $3 billion in annual revenue and do business in more than 20 countries. Watson expects the deal to close later this year, and add to its profit in 2010. It says privately held Arrow is one of the fastest growing generic drug companies, with $647 million in sales in 2008. Watson reported $2.54 billion in revenue last year. The deal includes $1.05 billion in cash with the rest in common and preferred stock. The boards of both companies approved the deal.
