Watson Pharmaceuticals Inc. (WPI) agreed to buy privately held Arrow Group for $1.75 billion in a cash-and-stock offer on Wednesday that would expand its presence in more than 20 countries across the world.

Under terms of the deal, Arrow stakeholders will get $1.05 billion in cash, 16.9 million shares of Morristown, New Jersey-based Watson valued at $500 million, as well as an additional $200 million preferred shares redeemable three years after the transaction.

As patent expirations loom large for many large pharmaceutical companies, cash-rich drugmakers have been trying to bolster their pipeline through strategic acquisitions at attractive prices amid the recession. Watson said it will finance the deal with available cash and some debt.

Besides getting a larger foothold in the global market, the acquisition will also help Watson to sell a generic version of Pfizer Inc.'s (PFE) Lipitor once the blockbuster cholesterol drug

Watson Pharmaceuticals Inc. (WPI) agreed to buy privately held Arrow Group for $1.75 billion in a cash-and-stock offer on Wednesday that would expand its presence in more than 20 countries across the world.

Under terms of the deal, Arrow stakeholders will get $1.05 billion in cash, 16.9 million shares of Morristown, New Jersey-based Watson valued at $500 million, as well as an additional $200 million preferred shares redeemable three years after the transaction.

As patent expirations loom large for many large pharmaceutical companies, cash-rich drugmakers have been trying to bolster their pipeline through strategic acquisitions at attractive prices amid the recession. Watson said it will finance the deal with available cash and some debt.

Besides getting a larger foothold in the global market, the acquisition will also help Watson to sell a generic version of Pfizer Inc.'s (PFE) Lipitor once the blockbuster cholesterol drug

If you have not read part one of this three part article, please find the link here.

As I have already highlighted, the health care industry is subject to many swings that are caused by macroeconomic variables, regulation, trends, and beliefs.  These changes can be hard to pick up on, especially if you are new to the health care industry or if you are not as familiar with it as with more experienced investors.  In the first part of this article, I explained how the Obama Administration and the FDA are shaping the environment for health care companies.  It is very important to understand the relationship between companies and their stakeholders and the major forces in the industry in order to properly evaluate a health care company.

Major M&A Activity

Recently, there has been some major consolidation within the industry as companies

TEVA, the “Generic Giant,” as I once referred to it back in November when I recapped its quarterly earnings, continues to outshine and outclass its peers on pretty much every level. Since I have followed healthcare equities for quite some time now and kept my focus solely on this sector, it is easy for me to say that Teva [TEVA: 43.96, 0.00 (0.00%)] is one of the best managed companies out there, and I think you would agree based on its recent performance and strategic moves. Earnings for the fourth quarter were highly scrutinized by all investors and Street analysts as our financial crisis continues onward, perhaps even getting worse. Many companies unloaded their books for fourth quarter earnings, marking down what is left. Others squeaked out positive gains but still were hesitant on guidance. Well, I obviously

Today, AJENE WATSON, LLC announced that it expects the current year to further position the company as a formidable player within the financial services industry. Although the firm hasn’t revealed many details, those close to the company have indicated that its focus may be on the endeavors of True Lending Platforms, a subsidiary of the company working on what could ultimately prove to be one of the most compliant stock loan products offered within the securities collateralized lending industry.

“The success of 2008 was very surprising,” said Ajene Watson, founder of AJENE WATSON, LLC and developer of the corporate and executive stock loan program True Loan. “Given that I had to deal with one of my greatest personal losses, the usual difficulties of forming a brand new company and the overall chaos of the global markets, we did extremely well all things considered.”

AJENE WATSON, LLC will be paying close attention to

Ajene Watson, LLC, financial services firm in New York, has turned to QualityStocks to provide and manage public relation services for its client, eDOORWAYS Corp. (EDWY. PK). “Taking into account the success of their own PR and branding, I expect they will perform similarly for eDOORWAYS,” stated Ajene Watson, the founder of AJENE WATSON, LLC and developer of the True Loan stock loan program.

QualityStocks is focused on collecting data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Free Daily Newsletter Report and distributing it to investors free of charge. The company is dedicated to assisting emerging public companies with their advertising efforts and currently has over 740,000+ subscribers.

Commenting on QualityStocks’ growth, Mr. Watson stated, “I’ve witnessed QualityStocks growth from a small investor newsletter with a handful of subscribers to a leading multi-million dollar PR brand within the Small Cap markets

eDoorways Corp. (EDWY.PK) has expanded the depth of its financial services through the joint venture entered with Envision Capital and AJENE WATSON, LLC. The joint venture should meld the strengths of both financial services firms and bring a broader base of knowledge and expertise to eDoorways customers.

“This Joint Venture will offer a stronger menu of services to my company’s clients and put us in a position to compete with much larger investment banks that offer similar services at much higher prices,” stated Ajene Watson.

Envision Capital, based in Ft. Lauderdale, is a boutique venture and advisory firm specializing in mergers and acquisitions, restructurings, strategic alliances and reverse mergers. Envision is able to meet clients’ goals by working closely with corporate management teams to effectively guide a company through the various stages of growth.

AJENE WATSON, LLC, based in New York, specializes in delivering alternative investment