Endo International to acquire BioSpecifics Technologies in $658m deal

In a strategic move to strengthen its portfolio, Endo International has reached an agreement to acquire BioSpecifics Technologies, a commercial-stage biopharmaceutical company based in New York, for approximately $658 million. The deal, valued at $88.5 per share, highlights the growing importance of collagenase-based therapies, which have proven to be essential treatments for various medical conditions. This acquisition marks a significant milestone in Endo’s pursuit of long-term growth, particularly in the injectable collagenase market.

Strengthening Collagenase-Based Therapeutics Portfolio

Endo International and BioSpecifics Technologies have maintained a strategic partnership since 2004, focusing on the development and commercialization of injectable collagenase clostridium histolyticum (CCH), a specific collagenase formulation. This partnership has already yielded substantial success, with the formulation receiving multiple FDA approvals over the past decade.

The first of these approvals came in 2010 when the FDA approved CCH for the treatment of Dupuytren’s contracture, a condition where collagen buildup causes the fingers to bend towards the palm. In 2013, the formulation was further approved for Peyronie’s disease, a condition causing abnormal curvature of the penis due to plaque buildup. The most recent FDA approval came in 2020, when CCH was approved for cellulite treatment, branded as Qwo.

XIAFLEX and Qwo: Key Products in Endo’s Portfolio

Endo International has been responsible for marketing the collagenase-based therapy for Dupuytren’s contracture and Peyronie’s disease under the brand name XIAFLEX. These indications have provided Endo with a steady revenue stream and contributed to the company’s solid market position in the injectables space. The addition of Qwo, marketed by Endo’s subsidiary Endo Aesthetics, is expected to expand the company’s reach into the aesthetics market, particularly addressing the widespread issue of cellulite.

As Joseph Truitt, CEO of BioSpecifics Technologies, notes, “BioSpecifics Technologies Corp. pioneered the development of collagenase-based therapies, resulting in a robust injectable collagenase portfolio, including XIAFLEX for the treatment of collagen-related medical conditions and Qwo for cellulite treatment.” This pioneering development has placed BioSpecifics at the forefront of the injectable collagenase market, creating significant opportunities for continued growth.

Strategic Acquisition to Drive Long-Term Growth

Endo International’s acquisition of BioSpecifics is designed to capitalize on the long-term growth potential of XIAFLEX and Qwo. Blaise Coleman, President and CEO of Endo International, emphasized that acquiring BioSpecifics aligns with the company’s strategic priority of expanding its portfolio through the continued investment in collagenase-based therapies. This acquisition will also serve to enhance Endo’s financial standing, with the deal expected to immediately improve the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).

Coleman also highlighted that this transaction will create significant value for shareholders of both companies, offering a solid foundation for continued innovation and market expansion in the injectables sector. The strategic fit between the two companies ensures that Endo will be able to leverage BioSpecifics’ expertise in injectable collagenase therapies, driving further market penetration and revenue generation.

The Path Forward: Endo’s Enhanced Market Position

Upon completion of the deal, which has already received unanimous approval from the boards of both companies, Endo will further solidify its position in the injectable therapeutics market. The acquisition is expected to close by Q4 2020, providing a timely boost to Endo’s portfolio ahead of anticipated growth in the injectable collagenase market.

This acquisition demonstrates Endo’s commitment to expanding its pipeline of differentiated products and continuing to innovate in the biopharmaceutical and aesthetic therapeutics spaces. With a proven track record in injectable collagenase therapies, Endo is poised to capture a greater share of the growing market, offering effective treatments for a range of medical and aesthetic conditions.

Endo International’s decision to acquire BioSpecifics Technologies for $658 million marks a significant step forward in the company’s long-term growth strategy. With XIAFLEX and Qwo at the forefront of Endo’s expanded portfolio, the company is well-positioned to continue its leadership in injectable collagenase therapies. As the deal progresses, both companies stand to benefit from enhanced financial performance, innovation, and market growth, further solidifying their standing in the biopharmaceutical industry.