DUBLIN, Ireland — Endo International PLC plans to buy Par Pharmaceutical Holdings Inc. from TPG Capital North America in a deal valued at $8.05 billion.
The pharmaceutical companies said Monday that the combination will create a leading specialty pharmaceutical company with a generics business that is one of the industry’s fastest-growing and among the top five by U.S. sales.
“Our generics business, Qualitest, continues to be an extremely attractive and effective growth driver for Endo. This transaction with Par builds upon our generics growth, adding a strong portfolio of high barrier-to-entry and attractive gross margin products while also transforming Endo, creating a powerful corporate platform for future growth and strategic M&A,” Rajiv De Silva, president and chief executive officer of Endo, said in a statement.
The Par portfolio includes nearly 100 products in multiple dosage forms and delivery systems, including oral solids, oral suspensions, injectables and high barrier-to-entry products. In addition, Par has a pipeline of more than 200 Abbreviated New Drug Applications (ANDAs), 115 of which were filed with the Food and Drug Administration as of Dec. 31, 2014. About a third of the filed ANDAs are potential first-to-file or first-to-market opportunities, and 75% of the overall development portfolio consists of Paragraph IV and first-to-file programs, all of which could provide a period of market exclusivity, if approved. It is expected that the Par R&D pipeline could generate 20 to 25 ANDA filings each year in 2015, 2016 and 2017.
Par Pharmaceutical is committed to significantly expanding its scope, capacity and capabilities to realize the maximum value of its diversified product portfolio and R&D pipeline, according to Par CEO Paul Campanelli. “We believe our combination with Endo best positions us to do so,” he stated. “We share Endo’s goal of developing and commercializing generic drugs in areas of greatest revenue potential, complex formulations and longer life cycles.”
Endo and Par said the agreement, which includes the assumption of Par debt, has been unanimously approved by the boards of both companies and is supported by their management teams. The transaction is expected to close in the second half of 2015 pending regulatory approvals and other customary closing conditions.
A privately held company, Par Pharmaceutical was acquired through a take-private transaction by an affiliate of TPG in 2012.
“Over the last three years, we have enjoyed partnering with the Par team to create a more diversified company with expanded capabilities, an enhanced product pipeline and more robust business development opportunities, all resulting in significant growth,” commented Todd Sisitsky, managing partner of TPG. “As part of Endo, Par will be well-positioned to drive future growth.”