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.

Companies