Endo buys US generics firm Qualitest for $1.2 billion

Mid-size specialty drugmaker Endo Pharmaceuticals has agreed a $1.2 billion deal to buy generics firm Qualitest Pharmaceuticals, the third and largest acquisition announced by the company since May.

Endo has been bulking up of late to develop a diversified product portfolio and reduce its reliance on current flagship product Lidoderm (lidocaine patch 5%), which is due to start losing patent protection in the USA in May 2012.  Sales of Lidoderm, which is used to treat pain associated with shingles, are currently running at around $700 million a year.

In August, Endo agreed to buy Penwest Pharmaceuticals for $144 million, bringing in-house its commercial partner for opioid analgesic Opana (oxymorphone), while in May it snapped up Healthtronics, a US provider of urological products and services, for $233 million.