PharmExec Blog

Endo Pharmaceuticals Acquires Qualitest for $1.2 Billion

The biotech aims to deliver more comprehensive healthcare solutions across its diversified businesses in branded pharmaceuticals, generics, and devices & services in key therapeutic areas with this deal.

Endo Pharmaceuticals has entered into an agreement to acquire privately held Qualitest Pharmaceuticals for approximately $1.2 billion in cash.

Qualitest, the sixth-largest US generics company as measured by prescriptions filled, is focused on cost-competitive, high-quality manufactured products with high barriers to entry. Qualitest has cGMP facilities in the US, including the ability to manufacture controlled substances, which make up approximately 40 percent of its product portfolio, and liquids, which are roughly 17 percent of its portfolio. The company brings a broad range of generics to Endo encompassing 175 product families.

Endo believes Qualitest brings critical mass to Endo’s current generics business, further diversifies its business lines and product offerings, and enhances Endo’s portfolio of pain management products. Combining the companies’ generics portfolios will also significantly boost Endo’s revenue and earnings growth.

In addition, with more than 90 percent of all pain prescriptions now filled by generic drugs in the $15 billion US pain market, the acquisition of Qualitest is a key step to Endo remaining at the forefront of providing pain solutions to its customers. Forty percent of Qualitest’s revenues are derived from pain products, making the acquisition a natural extension of Endo’s competitive position in pain and controlled substances.

“Together, we will be well positioned to strengthen our relationships with physicians and payment providers to deliver better outcomes for patients and to meet the demands of the evolving health care system in the US,” says David Holveck, president and CEO of Endo.

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