Endo International said today it will acquire Grupo Farmaceutico Somar ("Somar"), a privately owned specialty pharmaceuticals company, for an undisclosed amount of cash, in a deal that grows the buyer’s presence in Latin America—and continues Endo’s acquisition spree of recent months.
Based in Mexico City, Somar focuses on development, manufacturing, marketing and commercialization of branded, generic, and over-the-counter pharmaceuticals in Mexico. The company’s branded generics are based on its dermatology and infectious disease platforms, while its OTC offerings focus on women's health and child care products. Soman generated approximately $100 million of revenue in 2013 and has approximately 1,200 employees.
Rajiv De Silva, Endo’s president and CEO, said Somar was attractive to Endo because of its deep pipeline—which currently includes more than 60 products expected to launch over the next three years—and Mexican operations. Endo reasons Somar’s “proven” sales team and manufacturing facilities can be combined with the Mexican operations of its recently acquired Paladin Labs to expand Endo’s presence throughout Latin America.
"The acquisition of Somar is well-aligned with our goal of pursuing accretive acquisitions that enhance Endo's strategic positioning and diversifying our pharmaceutical business beyond the U.S. by accessing attractive emerging markets," De Silva said in a statement.
The deal is subject to customary conditions, including the receipt of applicable antitrust/competition approvals, and is expected to close in the third quarter of this year. Endo said it expects the deal to immediately add to its adjusted earnings per share.
Endo has entered into a series of deals over the past year in order to expand its drug portfolio and its global presence by transforming itself into a more focused specialty healthcare company.
Endo completed its $2.7 billion cash-and-stock acquisition of Paladin Labs on Feb. 28, then combined the companies and changed its name from Endo Health Solutions. Just four days ago, Endo expanded its pain drug portfolio by snapping up global rights to the migraine and headache drug Sumavel® DosePro® (sumatriptan injection) from Zogenix for $85 million-plus.
Endo came to terms in December on an acquisition with specialty pharma NuPathe, until NuPathe took a higher offer from Teva Pharmaceutical Industries and terminated the deal in January, for which Endo received $5 million cash. Endo was more successful in August when its Qualitest generic-drugs subsidiary agreed to acquire for $225 million Boca Pharmacal, a specialty generics company which commercializes and develops products in categories that include controlled substances, semisolids, and solutions.