After agreeing to buy Par Pharmaceutical Holdings for $8.05 billion back in May, Endo International has finally completed the transaction. In doing so, it has raised its profile to become one of the U.S.’s five largest generic drug companies based on annual sales.
The acquisition is part of Endo President and CEO, Rajiv De Silva’s goal of quickly expanding Endo by setting in motion a series of acquisitions to build the company’s product range and market penetration.
De Silva called the deal a “transformational acquisition that has strategically expanded our product portfolio, R&D pipeline, manufacturing and technology capacity and generics expertise.”
The result of the transaction will be a single U.S. generics pharmaceutical business unit that will operate as an Endo subsidiary under the name of Par Pharmaceutical. The new unit combines Endo’s generics business, Qualitest Pharmaceuticals, with Par’s. As a part of the deal, the former CEO of Par, Paul Campanelli, will join Endo’s executive team in his new role as the combined business unit’s group president.
The final purchase price for Par was 18 million in Endo equity and $6.5 billion in cash which was financed by a combination of the proceeds from Par’s $2.3 billion equity offering completed in June, plus cash and debt.
Prior to this purchase, Endo, the Dublin-based company with its U.S. headquarters in Malvern, lost a bidding contest for Salix Pharmaceuticals Ltd to Valeant in March, a sale that would have cost Endo the substantially higher price of $11 billion.
The merger was approved by the Federal Trade Commission on September 24th, after Endo complied with the condition that it sold glycopyrrolate, an ulcer medicine, and methimazole, a hyperthyroidism treatment before the merger could be approved. Endo met this condition by selling these two products to Rising Pharmaceuticals Inc.
Endo’s annual revenues are expected to rise to $4.2 billion after the acquisition, with more than half of that amount coming directly from the sale of generics. Before the deal was completed, Par was the country’s seventh largest drug maker, while Endo with revenue of $2.9 billion last year was ranked ninth.
