It really is a new Endo Health (ENDP).
I've
gone on at length about how past management did their best to try to
ruin a once-strong specialty pharmaceutical business, but the
announcement of a deal to acquire Paladin Labs (OTC:PLDLF)
is a true transformational deal in all of the right ways. Endo still
has challenges to deal with, including generic competition for two major
products and surgical mesh litigation, but the company seems to be
handling the generic issue pretty well and the acquisition of Paladin
will significantly expand the company's specialty pharma business and
generate substantial tax savings by redomiciling in Ireland.
The
only "but" is valuation. While I do believe that Endo Health's guidance
on synergies are pretty conservative, the nearly 30% move in the shares
is a pretty solid recognition of the value this deal will create. It's
tough to buy a stock at an all-time high after such a big move, but the
post-deal valuation doesn't seem unreasonable and Endo will still have
the financial flexibility to do additional deals to rebuild the pipeline
and patented product portfolio.
Please read more here:
Endo Health Scores A Huge Win
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