Endo in another below-the-belt acquisition
The $2.9 billion deal is the latest in a string of acquisitions for Chadds Ford, PA-based Endo, a specialty firm best known for its pain portfolio. Endo acquired generics-maker Qualitest in December and urology specialty HealthTronics last July.
American Medical Systems, which makes products for male and female incontinence, erectile dysfunction, prostate disorders, urethral strictures and other pelvic floor conditions including prolapse, reported a 4.4% rise in revenue for 2010 over 2009 to $542.3 million. That made it about a quarter the size of Endo, which reported revenues up 17% to $1.7 billion for 2010 and has forecast 2011 sales of between $2.35 billion and $2.45 billion. The combined company will have around 4,000 employees and revenues of around $3 billion, said Endo.
Endo president and CEO Dave Holveck said in a statement: “Through the acquisition of AMS, we will gain scale in devices and services, and will be positioned as a leading provider of healthcare solutions in the field of pelvic health, with a full spectrum of product offerings ranging from pharmaceuticals to medical devices.”
While Endo's pain portfolio remains its bread and butter, the company has been building a respectable franchise in urology and sexual health, most recently with the FDA approval in December of Fortesta, a topical gel for low testosterone that is being launched with 500 reps – around two-thirds of Endo's pre-merger sales force.