Endo International to acquire BioSpecifics Technologies for $658m
Endo International has agreed to acquire BioSpecifics Technologies, a New York-based commercial-stage biopharma company, for $88.5 per share, or an estimated enterprise value of around $658 million.
The Irish pharma company and BioSpecifics Technologies have been in a strategic partnership since 2004.
BioSpecifics Technologies had developing a form of injectable collagenase clostridium histolyticum (CCH), which is a specific collagenase formulation. It was first approved by the US Food and Drug Administration (FDA) about 10 years ago for the treatment of Dupuytren’s contracture.
In 2013, collagenase clostridium histolyticum was approved by the FDA for the treatment of Peyronie’s disease. In July 2020, the collagenase formulation was approved by the regulator for the treatment of cellulite.
For the first two approved indications, Endo International has been marketing the collagenase-based therapy under the brand name XIAFLEX.
For the treatment of cellulite, the collagenase-based therapy branded as Qwo will be launched by Endo International’s subsidiary Endo Aesthetics in Spring 2021.
Joseph Truitt – CEO of BioSpecifics Technologies said: “BioSpecifics Technologies Corp. pioneered the development of collagenase-based therapies, which has resulted in a robust injectable collagenase (CCH) portfolio, consisting of XIAFLEX to treat the vast number of diseases and medical conditions caused by the excess accumulation of collagen and Qwo for the treatment of cellulite.”
BioSpecifics Technologies has been earning a royalty stream pertaining to XIAFLEX and Qwo.
Blaise Coleman – President and CEO of Endo International said: “Acquiring BioSpecifics is consistent with our strategic priority to expand and enhance our portfolio through additional investment in the significant long-term growth potential of both XIAFLEX and QWO – two of our most durable and differentiated products.
“This transaction will also immediately enhance Endo’s adjusted EBITDA and create significant value for shareholders of both organizations.”
The deal, which has been approved unanimously by both the companies’ boards of directors, is expected to close during Q4 2020.