Aspen sells generic portfolio to Endo for $130 million

DUBLIN — Endo International announced Monday the acquisition of a broad portfolio of branded and generic injectable and established products focused on pain, anti-infectives, cardiovascular and other specialty therapeutics areas from a subsidiary of Aspen Holdings, a leading publicly-traded South African company that supplies branded and generic products in more than 150 countries. The deal is valued at $130 million. 

 

"With the acquisition of these products from Aspen Holdings, Endo continues to grow, diversify and optimize its international portfolio and, specifically, further expand its reach into hospital and pharmacy markets in South Africa," said Rajiv De Silva, president and CEO of Endo. "The transaction also continues to build Endo's R&D pipeline and position the company for future organic growth with the addition of nearly 70 pipeline programs in development with multiple strengths and dosage forms across oncology, anti-infectives, cardiovascular and respiratory."

 

The transaction is expected to meaningfully expand Endo's presence in South Africa by adding a product portfolio that generated approximately $28 million of revenue during the fiscal year ended June 30, 2014, as well as a sizeable pipeline of products in various phases of development that are expected to launch over the next several years.

 

This transaction helps to deliver upon Endo's strategy of building its International Pharmaceuticals business unit through acquisitions, the company stated. Endo plans to grow its International Pharmaceuticals business to represent 25% of Endo's corporate revenues in the longer-term. The portfolio of products to be acquired from Aspen Holdings will be incorporated into Endo's Litha Healthcare Group portfolio and is expected to increase Litha's pro-forma 2015 revenues by 30% and pro-forma pharmaceutical product revenues by 60%. 

 

Endo expects the transaction to close in third-quarter 2015 and to be immediately accretive to earnings.