NEW YORK (TheStreet) -- Endo International (ENDP) shares are down 3.35% to $82.49 in early market trading on Monday after the global specialty healthcare company announced an $8.05 billion cash and stock purchase of generic drug maker Par Pharmaceutical (PAR) from private equity firm TPG Specialty Lending (TSLX) before the opening bell today.
The purchase makes the Dublin, Ireland-based company one of the top five generic drug manufacturer's in the U.S. based on sales, according to CEO Rajiv De Silva. The deal is expected to close in the second half this year.
"We believe the acquisition of Par underscores the continued execution of Endo's value-driven M&A strategy and helps deliver on our goal of achieving double-digit revenue growth for the overall business over the long-term. We are also excited to welcome Paul Campanelli to the Endo leadership team," said De Silva. "With more than 25 years of experience in the generics industry and nearly 15 years at Par, Paul has demonstrated a clear track record of success in innovation and strategic management in specialty generics."
The purchase follows up Endo's previous failed bid for Salix Pharmaceuticals (SLXP) in March which fell apart after the company was outbid by Valient Pharmaceutical (VRX), who paid $11.1 billion for the company.
TheStreet Ratings team rates ENDO INTERNATIONAL PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENDO INTERNATIONAL PLC (ENDP) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: ENDP Ratings Report