The acquisition of Mumbai-based Sekhsaria is the latest step in Watson's strategy to increase its presence in India, where it plans to establish a generic product development centre.
Sekhsaria currently offers global pharma industry process R&D and contract manufacturing services in an FDA-approved manufacturing facility, including the development and manufacture of active pharmaceutical ingredients (API) and intermediates.
"Sekhsaria's unique API capabilities will support our generic pharmaceutical program needs," said Allen Chao, Watson's chairman and CEO.
At the end of last year, Watson also bought a manufacturing facility in Goa from Dr Reddy's Laboratories, which it now uses to produce solid dosage generic products for the lucrative US market.
Although a top priority, India is not Watson's sole point of focus, and the company has several ongoing programs aimed at improving its operating efficiencies through the expansion of its off-shore capabilities.
Late last year the company increased its investment in an FDA-approved Chinese/Taiwanese company specialising in development and manufacture of APIs.
"We have taken significant steps to expand our product development and manufacturing capabilities in Asia, which will position us to maintain a competitive cost base while continuing to provide a broad portfolio of quality products to our customers," said Chao.
At the same time that the company is expanding in Asia, it is also consolidating in other areas that are not part of its core focus.
Recently, Watson Pharma announced the sale of its unprofitable injectables manufacturing plant in Phoenix, Arizona, leaving 230 jobs hanging in the balance.
The company's plan is to move away from manufacturing injectables altogether and is now establishing contract manufacturing agreements to take over the 15 products affected by the sale.
During the fourth quarter of 2005, Watson also announced the closure of its solid dosage manufacturing facility in Puerto Rico and the loss of 315 jobs, transferring the products to its Carmel, NY and Corona, CA sites that were running at undercapacity.