Endo Health Solutions ($ENDP) needs a shot in the arm, now that its lead drug Lidoderm faces generic competition. And Endo may have found just that. The has company inked a deal to buy Canada's Paladin Labs for $1.6 billion.
To Endo's lineup of pain meds and generics, Paladin would add products to treat ADHD, urological problems and allergies, The New York Times notes. It also has some pain drugs to its credit, which Endo can easily fold into its marketing program.
"The acquisition of Paladin Labs accelerates Endo's transformation from an integrated health solutions company to a top-tier global specialty health care leader," CEO Rajiv De Silva said in a statement.
The Paladin buyout is a complicated cash-and-stock deal accomplished through an Irish holding company, the NYT reports. The deal also involves the spinoff of a new Canadian company, Knight Therapeutics, which will take a treatment for leishmaniasis with it.
Since a key shareholder, Fidelity Investments, started agitating for Endo to sell itself earlier this year, De Silva has been working on building up the company's product lines, revamping management and cutting costs. The company said in June it would cut 700 jobs and $325 million in costs, plus consider selling off non-core assets. In August, its Qualitest generics unit bought a niche generics player for $225 million.
- read the NYT story (sub. req.)
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