Endo Pharmaceuticals (ENDP) to Buy Indevus Pharmaceuticals (IDEV) For $370 Million, 45% Premium

January 5, 2009 4:36 PM EST
Endo Pharmaceuticals (Nasdaq: ENDP) and Indevus Pharmaceuticals, Inc. (Nasdaq: IDEV) announced that they have entered into a merger agreement under which Endo will commence a tender offer to acquire 100% of the outstanding shares of Indevus for approximately $370 million, or $4.50 per Indevus share, in cash (which is a 45% premium to Indevus Pharmaceuticals today), and up to an additional approximately $267 million, or $3.00 per Indevus share, in cash payable in the future upon achievement of certain regulatory and sales milestones. The transaction has been approved by the boards of directors of both companies.

Indevus chairman and chief executive officer, Glenn L. Cooper, M.D., stated, "This transaction allows us to capture significant value for our shareholders and create new value for patients, physicians and shareholders of both companies under Endo's leadership. We believe Endo's proven commercial capabilities, targeted approach to medical marketing and unique understanding of the changes taking place in health care delivery today will ensure the success of our current and future products. We welcome and fully support this acquisition."

Endo expects that the transaction will be dilutive to the company's earnings in 2009 and is targeted to become accretive to Endo's earnings in 2010. Endo expects to achieve up to $40 million in cost savings and will provide more complete financial guidance during its fourth quarter and full-year earnings conference call in February.

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Endo Pharmaceuticals is a specialty pharmaceutical company engaged in the research, development, sale and marketing of branded and generic prescription pharmaceuticals used primarily to treat and manage pain.
Indevus Pharmaceuticals, Inc. is a specialty pharmaceutical company engaged in the acquisition, development, and commercialization of products to treat conditions in urology and endocrinology.

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