Endo to buy specialty generic drugmaker Boca Pharmacal

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Endo to buy specialty generic drugmaker Boca Pharmacal

Home/Pharma News | Posted 06/09/2013 0 Post your comment

Specialty pharmaceutical maker Endo Health Solutions (Endo) announced on 28 August 2013 that its generics subsidiary, Qualitest, has agreed to buy specialty generic drugmaker Boca Pharmacal (Boca) for US$225 million in cash.

Endo, which makes both brand-name and generic drugs, has been trying to sell non-core assets and boost profit through acquisitions as its best-selling drug, the Lidoderm (lidocaine) pain-relieving patch, could face competition from generics from 15 September 2013, after the company made an agreement with generics manufacturer Actavis. For the 12 months ending 31 March 2012, Lidoderm had total US sales of approximately US$1.2 billion, according to IMS Health data.

Endo is also now vulnerable to generics competition for its powerful painkiller, Opana ER (oxymorphone) after FDA refused its petition to stop generic of the drug in favour of Endo’s new crush-resistant formulation [1].

The addition of Boca will expand Qualitest’s generics portfolio into niche areas, including controlled substances, semi-solids and solutions. Boca’s products alone are expected to generate sales of approximately US$50 million for 2013. With its unique portfolio and strong pipeline of abbreviated new drug applications, Boca is expected to ‘meaningfully accelerate the growth of Qualitest in 2014’.

Mr Rajiv De Silva, President and CEO of Endo, stated that the acquisition of Boca would not be the last for Endo. The plan is to ‘transform Endo into a more focused specialty healthcare company with a lean operating model, able to deliver consistent earnings and revenue growth’.

Endo expects the deal to be finalized before the end of 2013.

Reference

1. GaBI Online - Generics and Biosimilars Initiative. FDA rejects Endo petition to stop Opana ER generics [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2013 Sep 6]. Available from: www.gabionline.net/Generics/News/FDA-rejects-Endo-petition-to-stop-Opana-ER-generics

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Source: Actavis, Endo Health Solutions