Sector News

Categories

Borderless Insights

Image
Negotiating Terms with a New Employer
Image
Beyond Flowers and Platitudes: Reclaiming the Essence of International Women’s Day
Image
Visionary or ‘Stuck-in-the-Mud’? Where are you on Workplace Flexibility?

Endo’s shown it’s willing to spend. But with Salix gone, what’s left worth buying?

March 17, 2015
Life sciences
As Endo showed last week with its failed $10 billion bid for North Carolina’s Salix, it’s willing to shell out some serious dough if the right target comes along. The question is, what’s left?
 
Not much in that price bracket, the way Morningstar analyst Michael Waterhouse sees it. Salix was “kind of that last low-hanging fruit sitting out there,” he told Bloomberg. “There are still a lot of small companies out there that they’ll continue to look for but it’s definitely becoming a much more crowded buyers’ market.”
 
Indeed, after losing Salix to Valeant –which ponied up $173-per-share in cash, compared with Endo’s $175-per-share in cash and stock–the Ireland-based company may have to duke it out with other dealmakers down the line. In addition to serial buyer Valeant, companies like Shire and Pfizer are reportedly still on the hunt.
 
The good news for Endo, though, is that it’s “casting a pretty wide net,” Piper Jaffray analyst David Amsellem told the news service. The company could try building out its pain-management business–perhaps with a buyout of $750 million partner BioDelivery Sciences, or, further down the line, a merger with fellow Irish countryman Mallinckrodt, worth about $15 billion. Another target could be $3 billion Impax Labs, Gabelli & Co. analysts suggested–as could smaller players around the globe.
 
“If you looked not just in North America but overseas, there are many private companies and many small companies that many in the broader investment community have never heard of,” Amsellem said. “But you can rest assured that Endo has heard of them.”
 
That’s not necessarily surprising, considering CEO Rajiv De Silva’s resume. The helmsman previously served as president at Valeant, and since joining Endo he seems to have taken a page from that company’s playbook. De Silva struck up a string of deals last year, including pickups of Paladin Labs–which helped it complete its tax inversion–and Canada’s Auxilium, a $2 billion-plus tie-up that closed this January.
 
By Carly Helfand
 

comments closed

Related News

April 26, 2024

Former Bristol Myers CEO tapped as Novartis’ next board chair

Life sciences

Giovanni Caforio, the former CEO of Bristol Myers Squibb, is set to become the next board chairman of Novartis, which on Tuesday proposed the pharmaceutical industry veteran as its pick to replace Joerg Reinhardt in the role next year. Reinhardt has served as Novartis’ chair since 2013 and plans to retire when his 12-year term ends in 2025.

Read more
April 26, 2024

GE HealthCare launches voice-activated, AI-powered ultrasound machines for women’s health

Life sciences

GE HealthCare has raised the curtain on two ultrasound systems equipped with artificial intelligence programs designed to assist in diagnosing conditions in women’s health, including obstetric exams. The Voluson Signature 20 and 18 imaging systems include AI tools capable of automatically identifying and annotating measurements of fetal anatomy.

Read more
April 26, 2024

Scientists reveal new method that could reduce waste from drug manufacturing

Life sciences

Scientists from the University of Edinburgh’s School of Chemistry have revealed a new sustainable method of manufacturing complex molecules that could reduce waste produced during drug production. The method published in Nature Chemistry could help to prevent severe side effects caused by drugs that can exist as enantiomers.

Read more
More news

How can we help you?

We're easy to reach