Endo had cash and cash equivalents of $466.2 million at the end of FY10 compared with $708.5 million at the end of FY09.

Collaborations and Agreements

On April 11, 2011, Endo announced that it will purchase American Medical Systems, a leading pelvic-health devices provider, for $2.9 billion or $30.00 per share in cash. The $2.9 billion consideration includes the assumption of a $312 million debt by Endo Pharma. The deal, expected to close in the third quarter of 2011, has been approved by the Boards of both the companies. The acquisition, on completion, will bolster Endo’s urology portfolio according to the firms in the Zacks Digest Group.

Endo expects the deal to be accretive to its adjusted earnings with immediate effect following closure. Moreover, the deal is expected to bolster Endo Pharma’s 2012 and 2013 adjusted earnings by $0.60 and $0.80 per share, respectively.

In January 2011, Endo signed a deal with Orion Corporation, a European research & development based pharmaceutical and diagnostic company to co-develop eight cancer candidates which include four from each company’s pipeline. While the responsibility for marketing the candidates (on approval) in Europe, including Russia, lies with Orion, Endo will be responsible for marketing in North America.

Most firms in the Zacks Digest Group are concerned about the dependence on Lidoderm and the Opana franchise and generic competition.

The company has limited new products to help it bridge the gap when Lidoderm loses market exclusivity in 2015. Lidoderm accounted for almost 46% of the company’s revenue in 2010.

With the company continuously making acquisitions (most recent being HealthTronics, Penwest and Qualitest, the acquisition of American Medical Systems announced in April 2011), integration risks exist.