Endo Buys Testosterone Product For Up To $210M

CHADDS FORD, Pa. (AP) — Endo Pharmaceuticals Holdings Inc. said Wednesday it bought the U.S. rights to Fortesta testosterone replacement in a deal worth as much as $210 million.

Endo acquired the rights to the drug candidate from ProStrakan Group PLC for $10 million up front. It agreed to pay ProStrakan up to $40 million by the end of 2010 if Fortesta is approved by regulators and reaches commercial milestones. ProStrakan could get as much as $160 million more if the product achieves sales targets.

ProStrakan will supply the drug to Endo.

Fortesta is a long-acting testosterone replacement injection intended for men whose bodies do not produce enough of the hormone. The Food and Drug Administration is reviewing ProStrakan's application for the drug.

In morning trading, Endo shares fell 20 cents to $22.10.