Tuesday, September 29, 2015
Endo International completed its previously announced$8.05 billion acquisition of Par Pharmaceutical Holdings Inc in a deal that positions Endo as one of the five largest generic drug companies, based on annual sales, in the United States.
Par of Woodcliff Lake, N.J., is owned by private investment firm TPG.
Rajiv De Silva, president and CEO of Endo (NASDAQ: ENDP), called the deal a “transformational acquisition that has strategically expanded our product portfolio, R&D pipeline, manufacturing and technology capacity and generics expertise.”
As a result of the transaction, Endo’s generics business— Qualitest Pharmaceuticals – will be combined with Par’s to create a single U.S. generics business unit that will be named Par Pharmaceutical and operate as an Endo subsidiary. Paul Campanelli, former CEO of Par, is joining Endo’s executive team as the new business unit’s group president.
The purchase price for Par consisted of 18 million shares of Endo equity and $6.5 billion in cash, paid to former Par stockholders. The transaction was financed by a combination of cash, debt and proceeds from a $2.3 billion equity offering completed in June 2015.
The Federal Trade Commission approved the merger deal on Sept. 24, 2015, conditioned upon Endo selling its two products: glycopyrrolate, a ulcer medicine, and methimazole, of hyperthyroidism treatment. Endo sold both products to Rising Pharmaceuticals Inc.
The acquisition of Par is expected to boost Endo’s annual revenues to $4.2 billion, with sales of generics accounting for slightly more than half of that amount. Prior to the deal, Par was the country’s seventh largest drug maker and Endo was ranked ninth.
Endo, based in Dublin, Ireland, has its U.S. headquarters in Malvern. It generated revenues of $2.9 billion in 2014.
bizjournals.com
