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MALVERN, Pa. — In another example of pharmaceutical industry consolidation, Endo Health Solutions — through its Qualitest subsidiary — is acquiring privately held Boca Pharmacal, a specialty generic drug firm, for $225 million in cash.
Endo said Wednesday that the acquisition will enhance the growth platform and pipeline for the Qualitest business and reflects Endos strategic transformation into a leading specialty health care company.
Boca Pharmacal focuses on niche areas, commercializing and developing products in categories that include controlled substances, semisolids and solutions.
According to Endo, Boca Pharmacal’s commercial footprint and research and development pipeline "are a strong complement" to Qualitest.
"The acquisition of Boca Pharmacal is the first of several transactions we plan to execute as we transform Endo into a more focused specialty health care company with a lean operating model, able to deliver consistent earnings and revenue growth for our shareholders," stated Endo president and chief executive officer Rajiv De Silva, who took the helm as Endo’s CEO in March.
"The acquisition is aligned with our current generics footprint and will meaningfully accelerate the growth of Qualitest in 2014," De Silva added. "I believe that the revenue and earnings contribution of this transaction, combined with the unique commercial portfolio and strong pipeline of ANDAs [Abbreviated New Drug Applications], make this an ideal fit."
Endo said the agreement is expected to close before the end of the year, pending regulatory clearance.
The deal is the third large pharmaceutical acquisition announced this week. On Sunday evening, Amgen said it plans to acquire Onyx Pharmaceuticals Inc. for $10.4 billion, and on Tuesday Akorn Inc. unveiled a $640 million deal to buy Hi-Tech Pharmacal Co. At the end of July, Perrigo Co. announced an agreement to acquire Elan Corp. for $8.6 billion.
