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EXCLUSIVE-Endo Health in talks with potential buyers-sources

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Published: Wednesday, 30 Jan 2013 | 3:35 PM ET
By: Soyoung Kim and Greg Roumeliotis

* Warner Chilcott, Valeant Pharmaceuticals among interested parties-sources

* Talks at an early stage, no official sales process-sources

* Endo shares up 9 percent in afternoon trading

(Adds background, share movement)

NEW YORK, Jan 30 (Reuters) - Endo Health Solutions Inc has held talks in recent weeks with drugmakers potentially interested in buying the maker of pain relief medication, people familiar with the matter said on Wednesday.

The exploratory talks included parties such as Warner Chilcott Plc and Valeant Pharmaceuticals International Inc, according to the sources. Endo announced in December its longtime chief executive, David Holveck, would retire in 2013.

There is no official auction process currently underway for Chadds Ford, Pennsylvania-based Endo, and discussions about a potential sale are at a preliminary stage, said the sources, who requested anonymity because the matter is not public.

Representatives for Endo and Warner Chilcott did not immediately respond to requests for comment. Valeant declined to comment.

Endo, a diversified U.S. healthcare company with a market capitalization of $3.3 billion, makes prescription pharmaceuticals used primarily to treat and manage pain.

Endo shares hit a four-month high on the news and were trading up nearly 12 percent at $31.98 in afternoon trading on the Nasdaq.

Endo said on Dec. 12 that it does not expect to meet its revenue and earnings forecast for 2013.

The warning came just a month after Endo cut its 2012 earnings forecast to account for lower sales of its prescription pain drug Opana ER, which faces competition from a generic.

Endo's Lidoderm pain-relieving patch, its biggest revenue driver, is also set to face competition beginning Sept. 15, 2013, when Watson Pharmaceuticals Inc launches a generic version of the drug.

Endo has carried out acquisitions in recent years as it tries to diversify its portfolio. It expanded into devices and services with the acquisitions of HealthTronics in 2010 and American Medical Systems in 2011.

In 2010 Endo agreed to buy Qualitest Pharmaceuticals from private equity firm Apax Partners LLP for about $1.2 billion to grow its generic drug business.

(Reporting by Soyoung Kim and Greg Roumeliotis in New York; Editing by Dan Grebler)

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*Warner Chilcott, Valeant Pharmaceuticals among interested parties-sources. NEW YORK, Jan 30- Endo Health Solutions Inc has held talks in recent weeks with drugmakers potentially interested in buying the maker of pain relief medication, people familiar with the matter said on Wednesday.
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