The firm will expand its presence in Canada and emerging markets
US-based specialist healthcare company Endo Health Solutions is to acquire Paladin Labs for about US$1.6bn to expand its presence in Canada and emerging markets.
Endo will pay CA$77 (US$73.98) for each Paladin share.
\'Paladin Labs\' stable and growing cash flows and strong Canadian franchise complement our existing portfolio and further diversify our pharmaceutical product mix and geographic reach,\' said Rajiv De Silva, President and CEO of Endo.
Paladin Labs\' key products serve growing drug markets including ADHD, pain, urology and allergy, with a strong pipeline of new product launches over the next 12 months. In addition to its Canadian operations, Paladin Labs owns a controlling stake in Laboratorios Paladin in Mexico and a 61.5% ownership stake in publicly traded Litha Healthcare Group in South Africa.
Following completion of the transaction, the New Endo will be led by Endo\'s current management team. Paladin Labs will be a separate operating company under New Endo and will continue to be led by Paladin Labs\' current management team. It will maintain its current headquarters location in Montreal. Its Canadian operations will continue under the Paladin Labs name. It is Endo\'s intention to continue to expand Paladin Labs\' presence in the Canadian market.
The deal will also create a separate company called Knight Therapeutics, which will own Impavido, which was Paladin Labs\' product for the treatment of leishmaniasis, a rare parasitic disease.
The transaction is expected to close in the first half of 2014 and shareholders representing about 34% of Paladin\'s outstanding shares have agreed to vote in favour.
Endo says it is continuing to evaluate strategic alternatives for its HealthTronics business and its branded pharmaceutical early stage discovery platform.