Biotech Values

[DewDiligence]

ENDP acquires sixth-largest generic-drug company in the US, Qualitest Pharmaceuticals, for $1.2B in cash:

http://finance.yahoo.com/news/Endo-Pharmaceuticals-prnews-3435210445.html?x=0&.v=1

Because Qualitest is private, it has an unusually low profile for a company of its size and scope. According to the above PR, Qualitest plus ENDP will have 46 ANDA’s under FDA review. (Only Teva, Sandoz, MYL, WPI, and COV/Mallinckrodt have more.)

The above PR does not explicitly state Qualitest’s sales, but it does say that the combined companies would have had pro forma FY2010 sales of about $2B. Based on this disclosure, Qualitest has annual sales in the neighborhood of $500M, which means that ENDP is paying about 4x sales.