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Endo International plc (ENDP)

  • Fri, Mar. 27, 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).
    | 1 Comment
  • Mon, Mar. 16, 8:12 AM
    • In response to Endo's (NASDAQ:ENDP) cash-and-stock bid of $175 for Salix Pharmaceuticals (NASDAQ:SLXP), Valeant Pharmaceuticals (NYSE:VRX) ups it all-cash bid to $173, representing an enterprise value of $15.8B. Valeant expects the transaction to close on April 1, contingent on the satisfaction of the minimum tender condition.
    • As a result of the sweetened offer, the termination fee increases $100M to $456M.
    • Previously: Endo makes a move for Salix Pharma (March 11)
    | 1 Comment
  • Mon, Mar. 16, 1:47 AM
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  • Fri, Mar. 13, 4:10 PM
    • Unsurprisingly, considering the competing bid from Endo (NASDAQ:ENDP), Valeant Pharmaceuticals (NYSE:VRX) increases its debt offering from $9.6B to $10.1B that it will use to principally fund its acquisition of Salix Pharmaceuticals (NASDAQ:SLXP). The tranches are as follows (values are aggregate principal amounts and all are senior unsecured notes):
    • $2.0B 5.375% notes due 2020; $3.25B 5.875% notes due 2023; €1.5B 4.50% notes due 2023 and $3.25B 6.125% notes due 2025.
    • The company continues to expect the transaction to close by April 1.
    | Comment!
  • Thu, Mar. 12, 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
    | Comment!
  • Wed, Mar. 11, 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
    | Comment!
  • Wed, Mar. 11, 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.
    | 1 Comment
  • Wed, Mar. 11, 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.
  • Wed, Mar. 4, 8:23 AM
    • Based on the findings of an independent advisory panel, the FDA issues a formal announcement that restricts testosterone drug makers from promoting their products for age-related low testosterone, an ever-increasing target of prescriptions. The number of men being prescribed testosterone jumped over 75% between 2009 and 2013.
    • The agency asks (not really a request) manufacturers to change their labeling to clarify that their products are only approved for men with specific medical conditions and that taking the drugs could increase their risk of heart attacks and strokes.
    • The agency also requests that manufacturers of approved products, including skin patches, solutions, intramuscular injections and topical gels, conduct studies to determine if their treatments increase cardiovascular risk.
    • Last year, the FDA mandated that testosterone product makers update their labeling to include a warning about the risk of blood clots.
  • Mon, Mar. 2, 8:28 AM
    • Endo International (ENDP +0.4%) Q4 results: Revenues: $800M (+36.8%); COGS: $423.7M (+66.9%); R&D Expense: $40.4M (+20.2%); SG&A: $192.3M (+3.2%); Operating Loss: ($72.7M) (+90.1%); Net Loss: ($53.5M) (+93.1%); Loss Per Share: ($0.35) (+94.8%).
    • FY2014 results: Revenues: $2,877.2M (+9.9%); COGS: $1,400.6M (+34.7%); R&D Expense: $154.2M (+8.2%); SG&A: $795.9M (-6.3%); Operating Loss: ($896.9M) (-110.7%); Net Loss: ($721.3M) (-5.3%); Loss Per Share: ($4.91) (+18.8%); Quick Assets: $409.6M (-22.2%); CF Ops: $337.8M (+13.2%).
    • 2015 Guidance: Total revenue: $2.90B - 3.00B; GAAP EPS: $2.73 - 2.93; non-GAAP EPS: $4.35 - 4.55.
    | Comment!
  • Mon, Mar. 2, 7:06 AM
    • Endo (NASDAQ:ENDP): Q4 EPS of $1.16 beats by $0.04.
    • Revenue of $799.96M (+36.8% Y/Y) beats by $19.52M.
    • Press Release
    | Comment!
  • Sun, Mar. 1, 5:30 PM
  • Mon, Feb. 23, 1:00 PM
    • The FDA's acceptance of the New Drug Application (NDA) for Belbuca (buprenorphine HCl) buccal film for the management of pain severe enough to require daily, around-the-clock long-term opioid treatment triggers a $10M milestone payment from licensee Endo International (ENDP -0.8%) subsidiary Endo Pharmaceuticals to BioDelivery Sciences (BDSI +1.9%). The PDUFA date will be in October.
    • BDSI will be eligible for an additional milestone of up to $50M upon the approval of the NDA.
    • Previously: Endo and BioDelivery Sciences submit NDA for transmucosal pain med (Dec. 25, 2014)
    | Comment!
  • Sun, Feb. 22, 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.
    | Comment!
  • Mon, Feb. 16, 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)
    | Comment!
  • Thu, Feb. 12, 5:33 PM
    • Impax Laboratories (NASDAQ:IPXL) receives three Civil Investigative Demands (CIDs) from the Office of the Attorney General of the State of Alaska concerning its investigation into whether the company violated Alaskan state law by entering into settlement agreements with the respective brand name maker to delay the entry of generic versions of the products Adderall XR (NASDAQ:SHPG), Effexor XR (NYSE:PFE) and Opana ER (NASDAQ:ENDP).
    • Such transactions are called "pay-to-delay" deals because the generic firm accepts a cash payment in exchange to delay the commercial launch of a lower-priced generic version to the branded product. This enables the branded manufacturer to maintain higher prices for an extended period.
    • A CID is beefed-up subpoena which can require the recipient to produce documents, answer interrogatories or give testimony under oath.
    • Impax plans to cooperate fully with the Alaska AG.
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Company Description
Endo International PLC is a specialty healthcare company engaged in developing, manufacturing, marketing and distributing branded pharmaceutical and generic products as well as medical devices.