The news came alongside Endo’s 3rd quarter earnings report, which blew away analysts’ expectations by about 30% on adjusted per-share earnings.
Pennsylvania-based Endo this week announced a definitive agreement to acquire Paladin in a transaction valued at $77 per share, the vast majority of which Endo plans to pay in shares of stock.
"The acquisition accelerates Endo’s strategic transformation to a leading global specialty healthcare company and creates a platform for future growth in North America and internationally," according to a company statement.
Paladin comes with more than 60 marketed drugs and a rich pipeline of acquired and in-licensed pharmaceuticals already on Canadian and global markets. The company has posted 17 consecutive years of record revenues, and Endo expects the deal to be immediately accretive to its 2014 per-share earnings.
"With a relentless focus on execution, talented and tenacious people, and a proven strategy,Paladin Labs has become one of Canada’s leading publicly traded pharmaceutical companies," Goodman said in prepared remarks.
Endo posted profits of $40.9 million, or 33¢ per share, on sales of $715 million during the 3 months ended September 30. That compares with profits of $53.9 million, or 45¢ per share, on sales of $750.5 million during the same period last year.
Excluding 1-time expenses, Endo reported per-share earnings of $1.34, 29% higher than analysts’ 95¢ consensus estimate.