Endo to acquire DAVA Pharmaceuticals

Adds high-margin generics portfolio and robust near-term ANDA pipeline to Endo's existing generics portfolio

Dublin-based Endo International has reached a definitive agreement to acquire DAVA Pharmaceuticals, a speciality pharmaceutical company specialising in marketed, pre-launch and pipeline generics, for US$575m in cash, with additional cash consideration of up to $25m contingent on the achievement of certain sales milestones.

DAVA's generics portfolio includes 13 products on the market in a variety of therapeutic areas, as well as a promising product pipeline, including recent launches of generic Doxycycline and Cefdinir. The company expects to launch more than five products in 2015 with a further 20 to be launched over the next few years. DAVA's 2013 revenue was approximately $131m.

'The acquisition of DAVA is another step in our pursuit of accretive and strategic external growth opportunities where we see a clear path to meaningful upside and synergies,' said Rajiv De Silva, president and CEO of Endo. 'DAVA is well-positioned for continued strong and highly predictable financial performance with its existing commercial portfolio and attractive near-term pipeline, and is a natural fit for our generics business.'

The transaction is subject to requisite regulatory approvals and customary closing conditions, and is expected to be completed in the second half of 2014.