Endo to acquire biopharma firm Indevus for $370 million

06 January 2009

Endo Pharmaceutical Holdings Inc will acquire a 100 per cent stake in Indevus Pharmaceuticals Inc for $370 million upfront, or $4.50 per share, the two companies said in a joint statement.

The acquisition will merge Invedus' urology, endocrinology, novel drug-delivery technology and hormone drug candidates with Indevus and boost its and sales force in urology.

Endo said it may spend up to $637 million in the first biopharma acquisition of the year as the industry consolidates.

Endo will commence a tender offer to acquire 100 per cent of the outstanding shares of Indevus for around $370 million, or $4.50 per Indevus share, in cash, and up to an additional approximately $267 million, or $3.00 per Indevus share, in cash, payable in the future upon achievement of certain regulatory and sales milestones, it said.

The transaction, which has been approved by the boards of directors of both companies, will also result in Indevus Pharmaceuticals moving away from its pain-management business and into the more lucrative and less competitive field.

"This merger reflects our desire to expand our business beyond pain management into complementary medical areas where we can be innovative and competitive. We believe this expansion of our product line has significant growth potential because of the therapeutic value of the Indevus product portfolio,'' said David Holveck, president and chief executive of Endo.