Tags: US | Endo | Pharmaceuticals | Qualitest

Endo Pharma Paying $1.2 Billion for Qualitest

Tuesday, 28 Sep 2010 02:33 PM

Drug developer Endo Pharmaceuticals Holdings Inc. said Tuesday it is buying Qualitest Pharmaceuticals for $1.2 Billion in a move to diversify its business and strengthen its position in the generic and pain drug markets.

Endo, based in Chadds Ford, Pa., says it will finance the buyout with $500 million in cash, $300 million in credit, and up to $400 million in financing. Endo will retain Qualitest's facilities in Huntsville, Ala., and Charlotte, N.C., as well as its own facility in Westbury, N.Y. The combined companies will have about 3,000 employees.

About 40 percent of Qualitest's portfolio of products consists of controlled substances, with liquids making up 17 percent. The buyout adds a broad range of generic products to Endo's portfolio. Endo's key products include the Lidoderm topical pain treatment patch and the pain treatments Opana and Percocet.

"The acquisition of Qualitest accelerates our stated strategy of building a diversified health care company, better able to respond to the changing economics that drive the U.S. health care environment," said Endo President and CEO David Holveck in a statement.

Endo also said that 40 percent of Qualitest's revenue come from pain products, making it a "natural extension" of Endo's position.

The deal will add about $400 million to Endo's revenue, the company says, and about 40 cents per share in net income. The company reaffirmed its 2010 outlook for adjusted net income per share between $3.30 and $3.35 on revenue between $1.63 billion and $1.68 billion.

Lazard is the exclusive financial adviser to Endo and J.P. Morgan Securities LLC is Qualitest's exclusive financial adviser. The deal is expected to close late in the fourth quarter or early in the first quarter.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
1Like our page
2Share
Companies
Drug developer Endo Pharmaceuticals Holdings Inc. said Tuesday it is buying Qualitest Pharmaceuticals for $1.2 Billion in a move to diversify its business and strengthen its position in the generic and pain drug markets.Endo, based in Chadds Ford, Pa., says it will finance...
US,Endo,Pharmaceuticals,Qualitest
279
2010-33-28
Tuesday, 28 Sep 2010 02:33 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved