News Feature | June 30, 2014

Endo To Acquire DAVA Pharmaceuticals for $575 Million

By Lori Clapper

Endo International reached a $575 million agreement Tuesday to acquire DAVA Pharmaceuticals, a privately-held company specializing in marketed, pre-launch, and pipeline generic pharmaceuticals. The deal, which is expected to be completed in late 2014, also includes an additional $25 million contingent on the achievement of certain sales milestones. 

DAVA’s generics franchise generated revenue of approximately $131 million in 2013 with an adjusted EBITDA of approximately $100 million.  The drug maker will add the following to Endo’s current product portfolio:

  • 13 on-market products in a variety of therapeutic areas
  • A product pipeline that spans several therapeutic categories and includes the recently launched generics Doxycycline and Cefdinir 
  • More than five planned product launches in 2015, along with 20 over the next several years

"The acquisition of DAVA is another step in our pursuit of accretive and strategic external growth opportunities where we see a clear path to meaningful upside and synergies," Rajiv De Silva, president and CEO of Endo, said.  "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.”

This move is the latest in what Endo calls its “portfolio optimization process.” Earlier this month the company sold its brand-name pharmaceutical drug discovery platform to AsanaBioSciences, which included an undisclosed upfront payment and several early-stage drug discovery and development candidates in oncology, pain and inflammation, among other therapeutic categories, according to Endo’s announcement.

DeSilva also explained that Endo continues to pursue its strategic objectives they put in place in 2013, and that they are “committed to supporting the organic growth of our existing business segments as we search for attractive acquisition targets to enhance our portfolio of pharmaceutical products."