Ireland-domiciled Endo International is to acquire Dava Pharmaceuticals, a privately-held US generics company for up to $600 million.
Endo is stumping up $575 million in cash and will pay up to an additional $25 million contingent on certain sales milestones. It says that Dava “operates a highly-profitable generics franchise” with revenues last year of $131 million and adjusted earnings before interest, taxes, depreciation, and amortisation of $100 million.
Its portfolio includes 13 marketed products, including recent launches of generic doxycycline and cefdinir antibiotics. Dava expects over five drugs to be launched in 2015, and has a pipeline of 20 others.
Endo chief executive Rajiv de Silva said the acquisition is “another step in our pursuit of accretive and strategic external growth opportunities where we see a clear path to meaningful upside and synergies”. He added that Dava is “well-positioned for continued strong and highly predictable financial performance with its existing commercial portfolio and attractive near-term pipeline, and is a natural fit for our generics business”.