Watson Pharmaceuticals, Inc. To Divest Injectable Manufacturing Facility In Arizona

CORONA, Calif., March 30 /PRNewswire-FirstCall/ -- As part of an ongoing effort to optimize its manufacturing operations, Watson Pharmaceuticals, Inc. (NYSE: WPI - News), a leading specialty pharmaceutical company, today announced its plan to divest its injectable manufacturing facility located in Phoenix, Arizona.

The Phoenix facility currently manufactures fifteen products, including several manufactured for third parties. Over the next twelve months, the Company plans to establish contract manufacturing agreements for key products with third-party suppliers or with a new owner of the facility. If a suitable purchaser is not identified, Watson expects to close the facility by the end of the second quarter in 2007.

"I wish to thank the entire employee team at Phoenix for their focus and commitment since becoming part of our organization in 2000, following our acquisition of Schein Pharmaceutical," began Dr. Allen Chao, Watson's Chairman and Chief Executive Officer. "Over the past several years, the Phoenix team has worked diligently to reestablish production consistent with the commitments of a consent decree. In 2004, the consent decree was vacated, providing further acknowledgement of the collective efforts made by the dedicated facility team."

The Phoenix facility is the only sterile injectable manufacturing operation owned by Watson. The facility was acquired in 2000 as part of the Company's acquisition of Schein Pharmaceutical, Inc. and employs approximately 236 employees.

Forward-Looking Statement

Any statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Watson's current perspective of existing trends and information as of the date of this release. Except as expressly required by law, Watson disclaims any intent or obligation to update these forward-looking statements. Actual results may differ materially from Watson's current expectations depending upon a number of factors affecting Watson's business. These factors include, among others, difficulties or delays in transferring product manufacturing from the Company's Phoenix site to any third-party supplier and obtaining FDA or other regulatory agency approvals of such transfers; identifying a suitable purchaser, if any, for the Phoenix site and timely consummating a sale transaction; difficulties or delays in closing the Company's Phoenix site in the event it is not sold to a third party; successful compliance with FDA and other governmental regulations applicable to Watson's facilities, products and/or business; the impact of competitive products and pricing; market acceptance of and continued demand for Watson's products; and other risks and uncertainties detailed in Watson's periodic public filings with the Securities and Exchange Commission, including but not limited to Watson's Annual Report on Form 10-K for the year ended December 31, 2005.

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Source: Watson Pharmaceuticals, Inc.