Endo buying partner in pain Penwest for $168M

Looking to burnish its reputation in the field of pain therapy, Chadds Ford, PA-based Endo Pharmaceuticals (ENDP) struck a deal to buy out its development partner Penwest Pharmaceuticals for about $168 million on the same day it filed an NDA for a new, abuse-resistant drug.

The buyout deal--struck at a price of $5 per share, a 19 percent premium--gives the developer Penwest's interests in Opana ER, a therapy that the two biotech companies have been working on for the past 13 years, along with a pipeline of experimental therapies and new delivery tech. Both boards have signed off and shareholders controlling close to 40 percent of Penwest's shares are already on board.

"Our acquisition of Penwest sets the stage for maximizing the value of the Opana franchise and for leveraging Penwest's drug delivery technologies and pipeline across our branded and specialty generics businesses for the benefit of patients," said Julie McHugh, Endos chief operating officer. "This transaction highlights the growth potential of Endo's core pain management franchise."

Endo also announced its NDA for a new extended-release formulation of oxymorphone, a new abuse- and misuse-resistant opioid treatment developed in partnership with Grunenthal GmbH.

- read the Endo release
- check out the Reuters story