Watson Pharmaceuticals Inc. is buying another generic drugmaker, Switzerland's Actavis Group, for about $5.6 billion in a move that will make Watson the world's third-biggest generic drugmaker.

Watson, which has seen its profits surge since it started selling an authorized generic version of cholesterol blockbuster Lipitor in December, is now No. 4 globally.

Privately held Actavis operates in more than 40 countries and sells more than 1,000 products.

Watson CEO Paul Bisaro said in a statement that the deal will boost its position in other countries and complement its products in the U.S.

Watson is based in Parsippany, N.J.

The companies are expected to have 2010 combined revenue of about $8 billion.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)