Specialty drugmaker Endo International PLC is trying to lure Salix Pharmaceuticals Ltd with an offer Endo said is worth 11 percent more than the US$10 billion Salix has agreed to accept from serial acquirer Valeant Pharmaceuticals International Inc.
Endo’s Wednesday offer is the latest in a burst of merger and acquisition activity in the biopharmaceutical industry that began last year.
Endo values its cash and stock offer at US$175 per Salix share, based on Tuesday’s closing price, with the offer including US$45 in cash and the rest in Endo common stock.
Valeant, which had offered US$158 per share last month, said in a statement that it is “firmly committed to our all-cash agreed transaction, which delivers immediate and certain value to Salix shareholders.”
Endo, based in Dublin, Ireland, on Wednesday said that it has submitted its proposal to the Salix board of directors. The company said the deal could close in the second quarter.
Salix said in a statement that its board would review Endo’s proposal and “pursue the course of action that it believes is in the best interests of the company’s stockholders.”
If Endo closes the deal, it would have to pay Valeant a breakup fee of US$356.4 million that is required under the Valeant-Salix deal announced on Feb. 22.
Salix, based in Raleigh, North Carolina, specializes in medicines for gastrointestinal disorders, including Pepcid and Zegerid for ulcers and gastroesophageal reflux, and Relistor for constipation caused by opioid drugs. It is developing two more drugs for opioid-induced constipation, one for rheumatoid arthritis and a drug called rifaximin for Crohn’s disease and preventing complications of liver cirrhosis. Rifaximin is currently under review for a third use, treating irritable bowel syndrome.
Last year, Salix reported total revenue of US$1.13 billion and a net loss of US$415 million.
Endo makes medical devices and brand-name and generic drugs, including drugs for pain, urologic disorders, an orthopedic disorder called Dupuytren’s contracture and a drug for an endocrine disorder that causes premature puberty. It is currently developing a drug to treat cellulite, a film that dissolves in the mouth for treating chronic pain and an orthopedic drug for a condition called frozen shoulder syndrome.
Endo, which has US headquarters in Malvern, Pennsylvania, reported revenue last year of US$2.88 billion and a net loss of US$721 million.
Canada-based Valeant, which specializes in dermatology, eye health and neurology, had revenue of US$8.3 billion and net income of US$912 million last year.
WASHINGTON’S INCENTIVES: The CHIPS Act set aside US$39 billion in direct grants to persuade the world’s top semiconductor companies to make chips on US soil The US plans to award more than US$6 billion to Samsung Electronics Co, helping the chipmaker expand beyond a project in Texas it has already announced, people familiar with the matter said. The money from the 2022 CHIPS and Science Act would be one of several major awards that the US Department of Commerce is expected to announce in the coming weeks, including a grant of more than US$5 billion to Samsung’s rival, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), people familiar with the plans said. The people spoke on condition of anonymity in advance of the official announcements. The federal funding for
HIGH DEMAND: The firm has strong capabilities of providing key components including liquid cooling technology needed for AI servers, chairman Young Liu said Hon Hai Precision Industry Co (鴻海精密) yesterday revised its revenue outlook for this year to “significant” growth from a “neutral” view forecast five months ago, due to strong demand for artificial intelligence (AI) servers from cloud service providers. Hon Hai, a major assembler of iPhones that is also known as Foxconn, expects AI server revenues to soar more than 40 percent annually this year, chairman Young Liu (劉揚偉) told investors. The robust growth would uplift revenue contribution from AI servers to 40 percent of the company’s overall server revenue this year, from 30 percent last year, Liu said. In the three-year period
LONG HAUL: Largan Energy Materials’ TNO-based lithium-ion batteries are expected to charge in five minutes and last about 20 years, far surpassing conventional technology Largan Precision Co (大立光) has formed a joint venture with the Industrial Technology Research Institute (ITRI, 工研院) to produce fast-charging, long-life lithium-ion batteries for electric vehicles, mobile electronics and electric storage units, the camera lens supplier for Apple Inc’s iPhones said yesterday. Largan Energy Materials Co (萬溢能源材料), established in January, is developing high-energy, fast-charging, long-life lithium-ion batteries using titanium niobium oxide (TNO) anodes, it said. TNO-based batteries can be fully charged in five minutes and have a lifespan of 20 years, a major advantage over the two to four hours of charging time needed for conventional graphite-anode-based batteries, Largan said in a
Taiwan is one of the first countries to benefit from the artificial intelligence (AI) boom, but because that is largely down to a single company it also represents a risk, former Google Taiwan managing director Chien Lee-feng (簡立峰) said at an AI forum in Taipei yesterday. Speaking at the forum on how generative AI can generate possibilities for all walks of life, Chien said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) — currently among the world’s 10 most-valuable companies due to continued optimism about AI — ensures Taiwan is one of the economies to benefit most from AI. “This is because AI is