PARSIPPANY, N.J. (AP) -- Generic drugmaker Watson Pharmaceuticals Inc. said Monday that it sold its stake in South American pharmaceutical company Moksha8 for $47 million. The announcement came the same day that specialty drugmaker Forest Laboratories inked a new sales agreement with the company, headquartered in Sao Paulo, Brazil.
Watson bought a minority stake in Moksha8 in 2010 after investing $30 million as part of the company's ongoing financing efforts.
Watson expanded its existing marketing collaboration with Moksha8 to allow the company to market five generic nervous system drugs in Brazil and Mexico, in return for various sales royalties.
In a separate announcement Forest Laboratories said it entered into an arrangement to allow Moksha8 to sell its antidepressant Viilryd in Latin America. Additionally, Forest will provide $125 million in financing to the company over two years, conditioned upon Moksha8 achieving certain business goals. At the end of the period Forest will have the option to acquire the company.
"This alliance will in time contribute important incremental profits and growth to Forest," said Forest Labs Senior Vice President, David Solomon in a statement. "We are also pleased with the agreement between Moksha8 and Watson, as Watson's high quality branded generic products are complementary to Viibryd and the other novel brands Forest expects to provide to Moksha8."
Watson shares rose 53 cents to close at $87.44. Forest shares fell 28 cents to close at $34.62.