Endo announces acquisition of Indevus Pharmaceuticals

CHADDS FORD, Pa. Endo Pharmaceuticals has marked the beginning of 2009 with an announcement that it will acquire Indevus Pharmaceuticals.

The Chadds Ford, Pa.-based drug maker made the announcement in a statement Monday. The acquisition deal, worth about $370 million, will allow Endo to diversify out of its focus on pain medications; Indevus specializes in urology and endocrinology drugs.

“This merger reflects our desire to expand our business beyond pain management into complementary medical areas where we can be innovative and competitive,” Endo president and CEO David Holveck said. “We believe this expansion of our product line has significant growth potential because of the therapeutic value of the Indevus product portfolio, the unique expertise of both companies and the demographic, healthcare and reimbursement trends that favor the consideration of new products to address unmet needs in urology and endocrinology.”

In addition to the $370 million payment, Endo may also pay up to $267 million in regulatory and sales milestones.

According to Forbes magazine, the merger is the first acquisition deal of the year. On Monday, Pfizer chief executive officer Jeff Kindler told The Financial Times that the large drug maker would also be open to large-scale mergers and acquisitions.