Endo International PLC sells Men’s Health and Prostate Businesses to Boston Scientific
Endo International PLC sells Men’s Health and Prostate Businesses to Boston Scie

On Monday, the pharmaceutical company headquartered in Dublin, Endo International PLC, announced to sell its men’s health and prostate businesses. According to the announcement made by the company, the businesses will be sold to Boston Scientific Corp., manufacturer and marketer of medical devices.

According to the company, it has agreed to sell the businesses for $1.6 billion. While confirming the purchase, Boston Scientific Corp. said that deal value includes additional $50 million in milestone based on 2016 sales.

As per reports, shares of Endo fell less than 1% in premarket trading as the global specialty healthcare company gave quiet guidance for the year. On the other side, after the purchase, shares of Boston Scientific climbed by more than 1%.

Rajiv De Silva, Chief Executive of Endo International PLC, said the sale of American Medical Systems urology portfolio will increase the company’s financial flexibility to support objectives in core pharmaceuticals businesses. The company will also receive $50 million in cash for milestone payments, based on 2016 sales.

According to the reports, after the deal, the American Medical Systems’ men’s health and prostate businesses will become a part of urology and women’s health department of Boston Scientific. In 2014, the businesses had generated sales of about $400 million and income of approximately $130 million.

Mike Mahoney, Boston Scientific Chief Executive, said the deal with Endo International could create a business of about $1 billion in annual sales. He said, “It will complement Boston Scientific’s existing treatments for female gynecological and urologic disorders. In recent years, the company has tried to diversify its product portfolio to make it less dependent on sales of its cardiac devices”.

As per the reports, the deal has been expected to close in the third quarter. Currently, Endo has been evaluating strategic options for the AMS Women’s Health business as well.

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