Indevus / Endo Pharmaceuticals Merger Looks Good to Go

The Indevus Pharmaceuticals (IDEV) - Endo Pharmaceuticals (END) merger appears to be an extremely clean combination from a competition standpoint, as ENDP is engaged almost exclusively in non-generic pain management products (Lidoderm being the company's primary product), while IDEV focuses on areas such as overactive bladder (OAB), hypogonadism, prostate cancer, and other various urinary tract problems. Based on research to this point, there are absolutely no overlapping products associated with the proposed transaction.

Possible delaying factors exist with non-U.S. regulators, as IDEV actively markets and sells many of its products in Germany, Ireland, Italy, Spain and the United Kingdom, among other countries. It will be noted that in recent months, regulators in these jurisdictions have been extremely accommodating in clearing merger cases quickly in tender offer transaction such as this. Therefore, any delays will be minimal for this deal.

Assuming ENDP launches its tender offer for IDEV before the end of this week, or very early next week, the company should have virtually no difficulty completing the transaction by the third week of February 2009.

Disclosure: no positions

Comments

[Dan Jacome:]

ENDP has a history of using acquisitions to grow, since their business model revolves around improving existing treatments, not developing them from scratch (this means SHORTER patent exclusivity life, etc), so the deal makes sense - should be a good buffer for ENDP, which was facing the risk of 2013 patent loss of its shingles treatment.

Jan 07 09:20 PM