Endo Looks to Purchase Par Pharma For $8 Billion
Endo International Plc (ENDP.O) stated it would purchase Par Pharmaceuticals Holdings Inc from private-equity firm TPG Capital for about $8 billion, including debt, to become a top five generic drug developer by sales throughout America.
Par Pharma was acquired by TPG for $1.9 billion back in 2012 and since then has changed its focus to developing generics that are a bit of a task to make and administer. Such generic medicines offer higher margins than others.
The deal with provide ENDO five manufacturing plants and about 100 generic drugs that include Par Pharma’s two best sellers a copy of AstraZeneca’s (AZN.L) Crohn’s disease treatment, Entocort, and one of GlaxoSmithKline’s (GSK.L) cholesterol medicine, Lovaza.
“(The price) seemed a little expensive but at least the way Endo is looking at it is that you get cost synergies which make the deal a little more financially doable,” Morningstar analyst Michael Waterhouse stated.
Endo’s Shares dropped 5 percent at $80.93 during the afternoon trading on Monday. Gabelli & Co’ Kevin Kedra recently stated M&A activity in the industry had pushed up valuations and Par Pharma’s worth had gotten better as acquisitions made under TPG had a higher level of performance.