Endo to scoop up rival Par Pharma for $8B in bid to expand generics portfolio
- Endo will buy Par Pharma for about $8 billion. The company cites several advantages associated with the deal, including amping up its generics portfolio, and gaining operational and tax savings.
- Endo purchased Par from the private-equity firm TPG.
- Endo is one of the companies that moved its headquarters outside of the U.S. (to Ireland) before the new tax-inversion legislation too effect last year.
Endo is on a tear, focused on building out its portfolio, while agressively increasing revenues. Its decision to move its legal home to Ireland last year has positioned it to take advantage of better tax conditions in the U.S., which has the highest corporate tax rate in the developed world.
By buying NJ-based Par, Endo is adding almost 100 new products to its drug portfolio, including a number of injectables. Post-deal, Endo will have almost 800 generic drugs, positioning that division to double its sales. That bodes well for Endo, as generics currently comprise 40% of the company's revenues.
Based on this acquisition, Endo will now be ranked among the top five generics companies in terms of the size of its portfolio, and its annual revenues.