Endo: An Underappreciated Platform
Endo's Bid For Auxilium Makes Sense
Stephen Simpson, CFA
Stephen Simpson, CFA
Endo Health Scores A Huge Win
Stephen Simpson, CFA
Stephen Simpson, CFA
Sep. 28, 2015, 4:03 PM
- Endo International (NASDAQ:ENDP) completes is $8.05B acquisition of Par Pharmaceutical Holdings. The transaction consisted of $6.5B in cash plus ~18M shares of Endo common stock.
- Endo's revised Q3 guidance calls for revenues of $720M - 740M. Its updated 2015 guidance calls for revenues of $3.22B - 3.27B and non-GAAP EPS of $4.50 - 4.60 versus the previously announced range of $4.40 - 4.60.
- The company estimates 2016 non-GAAP EPS at $5.85 - 6.15.
May 18, 2015, 10:05 AM
- Endo International (ENDP -2.2%) acquires privately-held generic drug maker Par Pharmaceuticals from private equity firm TPG for $8B. The cash-and-stock deal consists of 18M ENDP shares and $6.5B in cash, including the assumption of debt.
- Par markets a portfolio of almost 100 products. The generics business of the combined companies will rank in the top five in terms of U.S. sales.
May 11, 2015, 9:01 AM
- Endo International (NASDAQ:ENDP) acquires a broad portfolio of branded and generic injectable and established drugs from a subsidiary of Aspen Holdings, a publicly traded firm in South Africa, for $130M. The products include pain and cardiovascular medications, anti-infectives and other specialty therapeutic areas.
- The products generated ~$28M in top-line sales in South Africa for the 12-month period ending June 30, 2014. The transaction also includes a pipeline of candidates that should launch in the next few years.
- Endo will fold the business into its Litha Healthcare Group. It is expected to increase Litha's pro-forma 2015 revenues by 30%.
- The deal should close in Q3.
Mar. 27, 2015, 4:16 PM
- Brean Capital's Difei Yang says small cap Hyperion Therapeutics (NASDAQ:HPTX) should be on the acquisition radar considering Big Pharma's appetite for rare disease players. The company's revenues are generated by two products, Ravicti (glycerol phenylbutyrate) and Buphenyl (sodium phenylbutyrate), that treat urea cycle disorders, inherited metabolic diseases caused by a deficiency in one of the enzymes or transporters in the urea cycle. Elevated ammonia, a consequence of the failure to convert ammonia to urea, can have serious consequences, such as brain damage, coma and even death.
- Mr. Yang estimates that the company's takeout price at $60 per share. He lists Shire plc (NASDAQ:SHPG), Valeant Pharmaceuticals (NYSE:VRX), and Endo International (NASDAQ:ENDP) as potential suitors. HPTX closed today at just under $43.
- The company booked ~$114M in revenues last year but took a loss of ($6.3M).
Mar. 16, 2015, 1:47 AM
- Endo International (NASDAQ:ENDP), which is in a bidding war with Valeant Pharmaceuticals (NYSE:VRX) for Salix Pharmaceuticals (NASDAQ:SLXP), believes it could close a takeover within as little as five weeks of a negotiated deal, Reuters reports.
- The timing is possible because under Irish law, there is only a minimum of 17 days required between mailing proxy materials and holding a shareholder meeting. The $11.2B proposal is also not subject to financing conditions.
- Previously: Endo makes a move for Salix Pharma (Mar. 11 2015)
- Previously: Endo would have to eat breakup fee to get Salix (Mar. 11 2015)
- Previously: Valeant bond sale continues despite Endo bid (Mar. 12 2015)
Mar. 12, 2015, 3:21 AM
- Valeant (NYSE:VRX), which is currently marketing a $9.6B high-yield bond to finance its planned acquisition of Salix Pharmaceuticals (NASDAQ:SLXP), is not pulling the deal despite reports that Endo International (NASDAQ:ENDP) is making a rival bid.
- A road show for the deal - which would be the second largest junk bond on record - started on Tuesday.
- Endo's bid values Salix at $175/share ($11.2B) in cash and stock, while Valeant's $10.1B offer consists of $158 per share in cash.
- Previously: Endo launches $175/share bid for Salix (Mar. 11 2015)
- Previously: Valeant initiates debt offering (Mar. 09 2015)
- VRX +2% AH
Mar. 11, 2015, 2:45 PM
- Endo (NASDAQ:ENDP) has submitted a proposal to Salix's (NASDAQ:SLXP) board to buy Salix for $175/share ($11.2B) in cash and stock, based on yesterday's closing prices.
- In an open letter (.pdf) to Salix's board, Endo states it's offering $45 in cash and 1.46 Endo shares for each Salix share. It predicts a deal would be accretive to 2017 EPS by 15%-20% relative to Endo's current plan.
- The offer price represents an 11% premium to Valeant's (VRX -2.7%) $158/share all-cash February deal to acquire Salix. Endo would have to pay a $5.50/share breakup fee to make the deal happen.
- Endo and Salix both remain halted. Before the halts, Endo was down 1.1% to $88.02, and Salix up 6.5% to $167.82.
- Prior Endo/Salix coverage: I, II
Mar. 11, 2015, 1:08 PM
- If Endo International (ENDP +0.5%) is ultimately successful in buying Salix Pharmaceuticals (SLXP +6.2%) for $170 - 175 per share, it would have to pay the breakup fee of $356M owed to Valeant (VRX -5.8%) which would add ~$5.50 per share to the deal.
- Endo made its offer in a private letter sent to Salix's BOD today.
- Update: The price being bantered about on social media is $165/share so, apparently, the breakup fee is included in the previous range of $170 - 175. Also, the offer is allegedly 25% cash and 75% stock.
Mar. 11, 2015, 12:51 PM
- According to a tweet from CNBC Now, Endo International (ENDP +4.1%) makes a bid for Salix Pharmaceuticals (SLXP +7.5%) despite the progress on funding made by acquirer Valeant Pharmaceuticals (VRX -3.9%).
- Valeant announced its takeover on February 22 for $158 per share.
- Previously: Valeant initiates debt offering (March 9)
- Previously: Report: Valeant to buy Salix for $10.1B (Feb. 22)
- Update: Endo's offer is supposedly $170 - 175 per share.
Feb. 22, 2015, 6:53 AM
- Valeant Pharmaceuticals (NYSE:VRX) has agreed to buy Salix Pharmaceuticals (NASDAQ:SLXP) for about $10.1B, or $158 per share in cash, Bloomberg reports.
- Two other drugmakers were rumored to be on the hunt for Salix prior to the newly reported deal, including Endo International (NASDAQ:ENDP) and Shire (NASDAQ:SHPG).
- On Friday, Salix shares rose $7.11 to $157.85, almost completely eliminating any premium in the purchase price.
- Separately, Valeant received approval to buy the assets of bankrupt Dendreon (OTCPK:DNDNQ) for $495M. Dendreon is best known for its prostate cancer vaccine, Provenge.
Feb. 16, 2015, 5:50 PM
- A person close to the matter says Endo International (NASDAQ:ENDP) is and has been interested in acquiring Salix Pharmaceuticals (NASDAQ:SLXP). It has apparently sent Salix several letters stating its interest in a transaction, but Salix has yet to respond.
- Valeant Pharmaceuticals (NYSE:VRX) and Shire (NASDAQ:SHPG) are also rumored to be in hunt for the maker of products that treat gastrointestinal disorders.
- Previously: Valeant close to a bid for Salix (Feb. 12)
- Previously: Shire now on the hunt for Salix (Feb. 13)
Jan. 29, 2015, 5:10 PM
- Endo International (NASDAQ:ENDP) finalizes its $2.6B takeout of Auxilium Pharmaceuticals. Auxilium's shareholders approved the deal on January 27.
Nov. 19, 2014, 11:55 AM
- The U.S. Federal Trade Commission terminates the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 for Endo International's (ENDP -0.8%) intended acquisition of Auxilium Pharmaceuticals (AUXL +0.6%).
- As previously announced, Endo will acquire all of the outstanding shares of Auxilium for $33.25 in a cash-and-stock deal valued at $2.6B. The transaction should close in Q1 2015.
- Previously: Auxilium agrees to sale to Endo for $2.6B
Oct. 9, 2014, 6:48 AM
- The stock and cash deal works out to a price of $33.25 for each share of Auxilium (NASDAQ:AUXL) vs. last night's close of $29.76, and represents a 55% premium to AUXL's closing price on Sept. 16, the day Endo International (NASDAQ:ENDP) made public its purchase proposal.
- Endo's earlier rejected bid had been for $2.2B.
- Auxilium owners may elect to receive consideration of all stock (0.488 ENDP shares for each share of AUXL), or all cash, or an equal mix of stock and cash.
- Previously: Auxilium says Endo offer a bit light but is willing to talk
Sep. 22, 2014, 12:18 PM
- Auxilium Pharmaceuticals' (AUXL -0.3%) BOD says that Endo International's (ENDP -1.7%) $2.2B bid "significantly undervalues" the company. Despite implementing a poison pill takeover defense, it says that it maintains the right to engage in discussions with Endo. ENDP says that it is willing to work with AUXL on a deal.
- A marriage with Endo would probably scupper Auxilium's agreement to merge with Canadian eye drug manufacturer QLT, Inc.
Sep. 16, 2014, 5:32 PM| Sep. 16, 2014, 5:32 PM | 2 Comments
Endo International Plc operates as a pharmaceutical company. It focuses on developing, manufacturing, and distributing of branded and generic pharmaceutical products. The company was founded on October 31, 2013 and is headquartered Dublin, Ireland.
Industry: Drug Manufacturers - Other
Country: United States
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