MALVERN, Pa. (AP) — Endo Health Solutions Inc. plans to spend at least $105 million to buy migraine treatment maker NuPathe Inc. in another sizeable acquisition for the drug and medical device developer.
The Malvern, Pa., company said Monday it will pay about $2.85 per share in cash for each NuPathe share and could pay up to another $3.15 per share if NuPathe’s migraine treatment patch Zecuity reaches some sales milestones.
The initial payment represents a 24 percent premium over NuPathe’s closing price Friday of $2.30. Shares of the Conshohocken, Pa., company climbed 50 percent, or $1.13, to $3.43 in morning trading Monday.
Endo said it will pay an additional $2.15 per share if net Zecuity sales exceed $100 million in any four-quarter period before the ninth anniversary of Zecuity’s first commercial sale. It will then pay an additional $1 per share if net sales pass $300 million during the same period.
NuPathe said in January that the Food and Drug Administration had approved Zecuity, a single-use, battery-powered patch that actively delivers sumatriptan, the most widely prescribed migraine medication, through the skin. The patch aims to provide relief for migraine headache pain and migraine-related nausea.
Endo’s business segments focus on branded and generic drugs, devices and services. It specializes in pain management, urology and endocrinology.
The company said last month it will spend about $1.5 billion to buy the Canadian specialty drug maker Paladin Labs, and both companies will then be folded into a newly-formed Irish holding company.
Shares of Endo Health edged up 15 cents to $64.01 in morning trading. They have more than doubled since closing 2012 at $26.23.