Endo has found itself in an increasingly competitive market for pain treatments, with King Pharmaceuticals’ acquisition of Alpharma creating a dominant force in the sector.
This may be a factor in Endo seeking additional revenue streams in new markets, with the acquisition giving it treatments for overactive bladder, prostate cancer and central precocious puberty.
David Holveck, president and CEO of Endo, said: "This merger reflects our desire to expand our business beyond pain management into complementary medical areas where we can be innovative and competitive.
“We believe this expansion of our product line has significant growth potential because of the therapeutic value of the Indevus product portfolio, the unique expertise of both companies, and the demographic, health care and reimbursement trends that favor the consideration of new products to address unmet needs in urology and endocrinology.”
Through the acquisition Endo will gain three products currently on the market, in addition to one that is in Phase III trials. Beyond this the deal offers Endo the opportunity to use Indevus’ Hydron drug delivery implant, which could be used to create new formulations of existing products.
Hydron is a non-biodegradable reservoir that can be inserted beneath the skin, provide sustained release of a therapeutic and be retrieved at a later date.
This can be inserted under local anesthetic by a physician and Indevus claims it improves patient compliance, reduces side effects and offers a means to extend a products life cycle.