Endo To Buy HealthTronics For $223M

NEW YORK (AP) -- Drug developer Endo Pharmaceuticals Holdings Inc. is buying HealthTronics for $223 million in a move to expand its urology and diagnostic products, the companies said Wednesday.

Endo, based in Chadds Ford, Pa., said it will offer $4.85 per share, marking a 34 percent premium to HealthTronics' closing price of $3.62 on Wednesday. Endo will also assume about $35 million in debt from the Austin, Texas, company. Both companies said their boards of directors approved the deal.

Endo said the deal adds therapies for enlarged prostate and prostate cancer to its line of products, along with diagnostics for cancer and other conditions. Endo already sells the Lidoderm pain patch and other pain medications, including Opana and Opana ER.

Endo bought Indevus in February 2009, adding several urology treatments to its line of products.

Additionally, Endo said it has the exclusive right to negotiate the buyout of Medical Enterprises Group, developer of the Synergo system aimed at treating non-muscle invasive bladder cancer.

Endo raised its 2010 guidance to $3.20 and $3.25 in adjusted earnings per share on revenue between $1.63 billion and $1.68 billion. The company previously set guidance for adjusted net income per share between $3.15 and $3.20 on revenue between $1.55 billion and $1.6 billion.

Analysts polled by Thomson Reuters predict income of $3.17 per share on revenue of $1.56 billion.

HealthTronics shares soared $1.18, or 32.6 percent, to $4.80 in aftermarket activity. They earlier added 6 cents to close at $3.62. The stock has ranged from $1.35 to $3.80 over the past year.

Shares of Endo rose 27 cents to close at $21.77.

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