Acquisition supports continued growth in South Africa and adds some 60 on-market products and nearly 70 R&D pipeline programmes
Endo International has announced the acquisition of a broad portfolio of branded and generic injectable and established pain, anti-infective, cardiovascular and other specialty therapeutic products from a subsidiary of Aspen Holdings.
The transaction is expected to expand Endo's presence in South Africa by adding a product portfolio that generated approximately US$28 million of revenue during the fiscal year ending 30 June 2014, as well as a sizeable pipeline of products in various phases of development that are expected to launch during the next several years.
This transaction underscores and helps to deliver Endo's strategy of building its international pharmaceuticals business unit through acquisitions. The company's aspiration is to grow its international pharmaceuticals business to represent 25% of Endo's corporate revenues in the longer-term.
The portfolio of products to be acquired from Aspen Holdings will be incorporated into Endo's Litha Healthcare Group portfolio and is expected to increase Litha's proforma 2015 revenues by 30% and proforma pharmaceutical product revenues by 60%. Under the terms of the agreement, Aspen Holdings will receive a one-time payment of approximately $130 million subject to usual and customary closing adjustments. Endo expects the transaction to close during the third quarter of 2015 and to be immediately accretive to earnings.
'With the acquisition of these products from Aspen Holdings, Endo continues to grow, diversify and optimise its international portfolio and, specifically, further expand its reach into hospital and pharmacy markets in South Africa,' said Rajiv De Silva, President and CEO of Endo. 'The transaction also continues to build Endo's R&D pipeline and position the company for future organic growth with the addition of nearly 70 pipeline programmes in development with multiple strengths and dosage forms across oncology, anti-infectives, cardiovascular and respiratory. We are excited about this opportunity as it furthers Endo's corporate and M&A strategy.'