Medical device maker Boston Scientific said Monday it will pay $1.6 billion to buy the men's health and prostate health business of Endo International.
Boston Scientific said it is gaining treatments for enlarged prostate, urinary incontinence caused by stress, and erectile dysfunction, and said the business has about $130 million in adjusted operating income and $400 million in annual sales. It could pay Endo another $50 million if the business reaches sales targets in 2016. It expects the sale to close during the third quarter.
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Endo International PLC is selling two businesses that were part of American Medical Systems, a company it bought in 2011 for $2.9 billion. Endo said it will also review strategic options for AMS' women's health business.
Endo spent $4.5 billion over several years to change itself from a drug company to a drug and medical device maker, but it decided to change course in 2014. Last year the company bought Paladin Labs for $1.5 billion, relocating to Ireland in the process. Around the same time the company sold off HealthTronics, a urology business it bought in 2010.
In January Endo paid $2.6 billion for Auxilium Pharmaceuticals. Auxilium's products include Xiaflex, a drug approved to treat two rare conditions: Dupuytren's contracture, which makes the tendons of the hand thicken and shorten, and Peyronie's disease, which causes abnormal curvature of the penis.
Endo shares rose $2.30, or 2.7 percent, to $87.90 in midday trading. Boston Scientific shares added 12 cents to $17.02.