Leading drugmaker Actavis makes record acquisition

Actavis has spent many billions of dollars in the last three years acquiring rival drug companies in order to expand its products portfolio, however this marks its biggest purchase ever and is one that it expects to bring more than $1 billion in cost savings.

Actavis chief executive officer Paul Bisaro will lead the combined firm, which he called a "financially and commercially compelling" transaction. "With this strategic combination, we create an innovative new model in specialty pharmaceuticals leadership, with size and scale, a balanced offering of strong brands and generics, a focus on strategic, lower-risk drug development, and - most important - the ability to drive sustainable organic growth," he said in a statement.

The combined company is forecast to have annual revenues of more than $15 billion come 2015, while news of the takeover immediately sent Forest shares up by nearly 30 percent, while stock in Actavis rose by five percent.