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Endo to buy Indevus Pharmaceuticals

Associated Press / January 6, 2009
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NEW YORK - Endo Pharmaceutical Holdings Inc. said yesterday that it will buy Lexington, Mass.-based Indevus Pharmaceuticals Inc. for $370 million upfront, or $4.50 per share, acquiring Indevus's urology and hormone drug candidates in the process.

The upfront price represents a premium of 45.2 percent to Indevus's closing price yesterday of $3.08. The boards of both companies approved the deal, and Endo's tender offer for Indevus shares will remain open for 45 days.

Endo could pay an additional $267 million, or $3 per share, if Indevus's long-acting testosterone drug candidate, Nebido, and its acromegaly treatment candidate, ocreotide, reach development and sales milestones.

Indevus shares rose 45 cents to $3.55 in aftermarket trading. Endo shares were unchanged at $24.05.

Chadds Ford, Pa.-based Endo said the deal will decrease its profit in 2009 and add to its profit in 2010, although it did not detail the effects.

Indevus is developing Nebido to treat hypogonadism, a hormonal condition that interferes with the functioning of the testes.

The ocreotide implant is designed to treat acromegaly, a hormone disorder that can make the feet, hands, nose, and mouth grow to unusually large sizes.

The company plans to send the Food and Drug Administration new data on Nebido in the first half of 2009, as it seeks approval to market the drug in the United States.

Endo will pay up to $2 per share, depending on Nebido's regulatory approval and sales results. It will pay up to $1 per share if the FDA approves the ocreotide implant for sale.

Indevus is also hoping to relaunch its bladder-cancer drug, Valstar, in 2009.

It was withdrawn from the market in 2002 after one of its inactive ingredients was determined to be unstable.

The company is waiting for inspections of the third-party manufacturer of the drug to be completed.

Endo sells pain drugs including the Lidoderm patch, Opana, and Opana extended-release.

The company reported $913.2 million in revenue through the first three quarters of 2008, while Indevus posted $77.8 million in the fiscal year ended Sept. 30.

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