Endo to acquire Dava Pharmaceuticals
Endo International has reached a definitive agreement to acquire Dava Pharmaceuticals, a privately held company specializing in marketed, pre-launch and pipeline generic pharmaceuticals, for $575 million in cash, with additional cash consideration of up to $25 million contingent on the achievement of certain sales milestones. The acquisition enhances Endo's commercialization and development platform and is expected to be immediately accretive to Endo's 2014 adjusted earnings per share (EPS).
"The acquisition of Dava is another step in our pursuit of accretive and strategic external growth opportunities where we see a clear path to meaningful upside and synergies," said Rajiv De Silva, president and CEO of Endo. "Dava is well-positioned for continued strong and highly predictable financial performance with its existing commercial portfolio and attractive near-term pipeline, and is a natural fit for our generics business."
Dava operates a generics franchise with 2013 revenue of approximately $131 million and 2013 adjusted EBITDA of approximately $100 million. Dava's strategically-focused generics portfolio includes 13 on-market products in a variety of therapeutic areas. In addition, Dava has assembled a promising product pipeline across a multitude of therapeutic categories, including recent launches of generic Doxycycline and Cefdinir. The company also expects five products to be launched in 2015, and more than 20 additional products to be launched over the next several years.
The transaction is expected to be completed in the second half of 2014.