Navigate this market better. Subscribe for FREE stock alerts and information.

Tuesday, September 28, 2010

Endo Pharmaceutical to buy Qualitest for $1.2 Billion

Shares of Endo Pharmaceuticals are up in pre-market trading Tuesday morning after the announcement that the company will buy privately held generics company Qualitest Pharnmaceuticals for approximately $1.2 billion in cash. Endo says the acquisition is part of a plan to expand its portfolio of pain treatment drugs.

The deal is expected to close in late Q4 2010 or Q1 2011. Analysts see the deal adding $0.40 to annual adjusted EPS. Revenue is also expected to grow by at least 15% over the next two years.

Endo shares have gained 23% since their last acquisition of Penwest in August.