MALVERN, Pa. (AP) — Endo Health Solutions said Wednesday it will buy Boca Pharmacal for $225 million in a deal that expands its generic drug business.
Boca Pharmacal says it makes "niche" generic drugs. Endo said privately-held Boca focuses on products that require special handling or administration. Coca Pharmacal is based in Coral Springs, Fla.
Endo said the purchase should close before the end of the year and will expand its Qualitest generic business and add to its adjusted net income immediately.
Shares of Endo Health Solutions Inc. rose 68 cents, or 1.7 percent, to $39.86 in morning trading.
In June Endo said it plans to explore strategic options for two businesses and eliminate almost 700 jobs. The company will review strategic options for its HealthTronics urology business and for its branded drug development platform, and will eliminate about 15 percent of its staff positions and reduce annual spending by about $325 million.
New CEO Rajiv De Silva said Endo will focus on branded drugs, generic drugs made by its Qualitest unit, and its American Medical Systems business, which sells urology products and services. The company said its goals include focusing on developing drugs that will bring it more revenue in the near future. Those include generics and lower-risk projects.
Endo spent about $4.5 billion on acquisitions in 2010 and 2011, changing itself from a drugmaker to a company that made drugs, medical devices, urology products, and software.