Endo to buy Penwest Pharmaceuticals for US$168m
Expands pain drug product portfolio and files New Drug Application
US-based Endo Pharmaceuticals has agreed to buy Penwest Pharmaceuticals of New York for around US$168m to expand its pain drug product portfolio. The firm says the move will boost its earnings for 2010.
Drug delivery company Penwest has been working with Endo since 1997 on the development of pain drug Opana ER and receives royalties on net sales.
‘Our acquisition of Penwest sets the stage for maximising the value of the Opana franchise and for leveraging Penwest's drug delivery technologies and pipeline across our branded and specialist generics businesses,’ said Julie McHugh, chief operating officer of Endo Pharmaceuticals.
Endo plans to start a tender offer to acquire all outstanding Penwest shares and expects the offer to be completed in September.
The boards of directors of both companies have unanimously approved the transaction.
Endo has also filed a New Drug Application (NDA) with the US Food and Drug Administration (FDA) for an extended-release formulation of oxymorphone to treat moderate to severe pain in patients requiring continuous opioid treatment.
The new formulation of the painkiller, designed to be crush-resistant, was developed in partnership with Aachen, Germany based pharmaceutical firm Grunenthal, a specialist in the development of analgesics.