Watson Pharmaceuticals Inc. is buying rival Andrx Corp. for $1.9-billion (U.S.) in cash in a deal that would create the third-largest U.S. generic drug maker, based on prescriptions dispensed. The combined company under the deal announced yesterday will have more than 60 generic drug applications in its pipeline and combined annual revenue of $2.8-billion. Watson is offering $25 a share for Andrx, a 32-per-cent premium to the stock's average trading price over the past 30 days. The boards of both companies have approved the transaction, expected to close in six months. Plantation, Fla.-based Andrx makes generic drugs and drug delivery technologies and employs 1,700 people. WPI (NYSE) fell 55 cents to $29. ADRX (Nasdaq) rose $2.14 to $23.73. AP