Endo Pharmaceuticals (ENDP) to Acquire Indevus Pharmaceuticals (IDEV)

In the first biotech deal of 2009, Endo Pharmaceuticals (ENDP) announced it has signed a definitive merger agreement with Indevus Pharmaceuticals (IDEV), whereby Endo will acquire 100% of the outstanding shares of Indevus for $370 million, or $4.50 per share, in upfront cash, with another potential $267 million, or $3.00 per share, in future consideration.

The future potential cash to Indevus shareholders will come in the form of two contingent rights, one in the form of a $2.00 per share payment for the approval of Nebido, and the second $1.00 per share payment for the approval of octreotide implant.

Indevus is currently trading at $5.24 per share, a 70% increase from the close yesterday. On December 26, 2008, we initiated coverage of Indevus at $2.71 per share with a Buy rating and $6.00 price target.

So far the biotech sector is off to an excellent start in 2009. The Endo-Indevus deal, along with recent comments by Pfizer’s (PFE) CEO, Jeff Kindler, certainly keep us thinking it could be a very interesting year for deal-making.

Read the full analyst report on IDEV

Read the full analyst report on PFE

“ENDP” Free Stock Analysis: Buy? Sell? Hold?
“IDEV” Free Stock Analysis: Buy? Sell? Hold?
“PFE” Free Stock Analysis: Buy? Sell? Hold?
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