Endo (ENDP) Gains on Deal to Acquire BioSpecifics for $540M

Shares of Endo International plc ENDP gained 13.25% after it announced that it will acquire commercial-stage biopharmaceutical company, BioSpecifics Technologies Corp. BSTC for $88.50 in cash per share, or an estimated enterprise value of approximately $540 million.

The total value of $540 million was the net of approximately $120 million in cash acquired at the anticipated time of deal closure.

We remind investors that Endo has a strategic relationship with BioSpecifics since 2004, whereby the latter receives a royalty stream from the former.

The royalty is related to Endo's collagenase-based therapies, which currently include Xiaflex indicated for the treatment of Dupuytren's contracture and Peyronie's disease, and the recently approved Qwo, an injectable treatment for cellulite. Qwo is expected to be     launched next year.

The transaction is expected to close in late 2020.

Endo expects the acquisition to enable it to reap benefits through additional investment in the significant long-term growth potential of both Xiaflex and Qwo.

Shares of BioSpecifics Technologies were up 44.7% on the news as the price of $88.50 per share in cash was much higher than the closing price $61.02 as of Oct 16.

Shares of Endo have gained 21.9% in the year so far against the industry’s 7% decline.

Endo’s efforts to revive its business are encouraging and should yield results. Xiaflex’s performance has been solid on higher demand for both Peyronie's disease and Dupuytren's contracture. The Sterile Injectables segment continues to gain traction, driven by strong growth in Vasostrict and Adrenalin.
It recently entered into a non-exclusive manufacturing agreement with Novavax, Inc. NVAX for the latter’s COVID-19 vaccine candidate, NVX-CoV2373.

Endo currently carries a Zacks Rank # 2 (Buy). Another similar-ranked stock in the biotech space is Vertex Pharmaceuticals VRTX. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vertex’s earnings estimates grew 13 cents for 2020 and 18 cents for 2021 in the past 30 days.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Endo International plc (ENDP): Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
Novavax, Inc. (NVAX): Free Stock Analysis Report
BioSpecifics Technologies Corp (BSTC): Free Stock Analysis Report
To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More