Endo International, PLC (NSDQ:ENDP) may have found a buyer for its American Medical Systems subsidiary after months of speculation that the Irish pharma company had put its medical device business on the block.
Representatives for the Marlborough, Mass.-based Boston Scientific declined comment on the deal, according to the news service.
Endo bought pelvic devices maker AMS for $2.9 billion in cash in 2011. AMS has had a few issues over the years, including high-profile lawsuits over pelvic mesh implants and FDA warnings. The Wall Street Journal first reported that Endo had put AMS on the block back in August. At the time of the report, anonymous sources cited by the Journalspeculated that Endo could garner $2 billion for AMS.
If Boston Scientific were to acquire AMS for $2 billion it would be the largest deal the company has made since acquiring Guidant Corp. in 2006 for $27 billion, according to Reuters.
During 2014, Endo paid $830 million to settle some 20,000 product liability lawsuitsover pelvic mesh products. Endo admitted no guilt in settling the lawsuits, but the hit pushed the company into the red for the 1st quarter of 2014.
In February 2014,Endo also took a $500 million write-down on the value of its AMS segment, saying at the time that it would book a $316 million pre-tax charge to boost its product liability reserve to $520 million to cover "all known, pending and estimated future claims primarily related to vaginal mesh cases."