Andrx Corporation

In 1992, registered pharmacist Alan P. Cohen incorporated Andrx Pharmaceuticals, Inc. in Davie, Florida. Having previously founded and sold a generics distribution company, Cohen saw a new opportunity. The market for controlled-release drugs was expanding rapidly, and the playbook was to create generic versions of popular, patent-expired brand-name drugs using proprietary timed-release technologies. To execute this vision, Cohen brought on former colleagues from his previous venture, including Dr. Chih-Ming J. Chen as chief scientist. The company's strategy was twofold: develop its own complex generic drugs and, in the meantime, fund the expensive R&D by distributing third-party generic products—a business Cohen knew well. This approach provided early revenue as Andrx navigated the lengthy and litigious process of getting its own formulations approved. The company went public in 1996, raising capital to fuel its growth. Its first generic product was manufactured and sold in 1997, and by 1998, Andrx had achieved its first profitable quarter. The defining chapter for Andrx came in 2006. Watson Pharmaceuticals announced it would acquire Andrx for approximately $1.9 billion in an all-cash deal. The acquisition was strategic, making the combined entity the third-largest generic pharmaceutical company in the U.S. based on prescriptions dispensed. For Watson, the deal provided access to Andrx's specialized expertise in formulating difficult-to-replicate, controlled-release products, significantly strengthening its own product pipeline and technology base.