Endo Dives Deeper Into Devices With AMS Acquisition

Article preview from IN VIVO - April 01, 2011

With its $2.9 billion acquisition of American Medical Systems, Endo Pharmaceutical Holdings is further diversifying its specialty pharma portfolio into devices and services.

Endo Dives Deeper Into Devices With AMS Acquisition

Article preview from IN VIVO - April 01, 2011

With its $2.9 billion acquisition of American Medical Systems Holdings Inc., Endo Pharmaceuticals Holdings Inc. is further diversifying its specialty pharma portfolio into devices and services. The two companies announced an agreement April 11 in which Endo will acquire the urology device specialist for $30 per share, a move that furthers Endo's strategy to become a leader in the area of pelvic health services and products. The healthy offer represents a 34% premium over AMS' April 8 closing price – and is three times the device maker's 2010 sales of $538 million. The combined company is estimated to have sales of $2.68 billion.

Endo – once inordinately dependent on Lidoderm (lidocaine 5% patch) for revenues – has been in the midst of a makeover under CEO David Holveck. Since he took the helm in 2008, the company has completed four acquisitions, all aimed at positioning it as a diversified health care solutions provider focused on pelvic disorders and pain: Qualitest Pharmaceuticals ($1.2 billion), Penwest Pharmaceuticals Co. ($168 million), HealthTronics Inc. ($223 million), and Indevus Pharmaceuticals Inc. (now Endo Pharmaceuticals Solutions Inc.) ($370 million).

But the acquisition of AMS is Endo's largest yet, and it substantially alters the company's portfolio and reinforces its commitment to devices.

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