Endo Health Sells HealthTronics for up to $130M
CHADDS FORD, Pa. (AP) — Endo Health Solutions said Thursday it will sell its HealthTronics urology unit for up to $130 million as it streamlines its business.
Investment firm Altaris Capital Partners will pay $85 million upfront for HealthTronics, and Endo could get an additional $45 million based on the performance of the business. Endo expects the sale to close during the first quarter.
Endo spent several years expanding from a drug company to a larger drug and medical device maker. It spent around $4.5 billion on a spate of acquisitions, and bought HealthTronics in July 2010 for $223 million. In June, Endo said it would explore strategic options for HealthTronics and for its branded drug development platform, and also said it planned to eliminate about 700 jobs and cut $325 million in annual spending.
CEO Rajiv De Silva said Endo will focus on branded drugs, generic drugs made by its Qualitest unit, and its American Medical Systems business, which sells urology products and services. It will also focus on developing drugs that will bring it more revenue in the near future, including generics and lower-risk projects.
The company has already sold two HealthTronics units for about $25 million in total. Those businesses provide image-guided radiation therapy and anatomical pathology lab work.
Shares of Endo Health Solutions Inc. fell $1.04 to $68.89 in midday trading.