Strategic divestiture of non-core product lines accelerate the alignment of Litha Healthcare Group around specialty pharmaceuticals
DUBLIN, Aug. 5, 2015 /PRNewswire/ -- Endo International plc (NASDAQ: ENDP) (TSX: ENL), announced today the strategic divestiture of a portfolio of device, vaccine and other non-core products from its international subsidiary in South Africa, Litha Healthcare Group, to a consortium comprised of Westrate Trade and Invest Proprietary Limited (Westrate) and Immunotek (Pty) Limited (Immunotek). The transaction is expected to be completed in the fourth quarter of 2015 subject to regulatory consents and is not expected to have a material impact on Endo's financial results this year. This divestiture continues the transformation of Litha and strengthens its strategic focus on pharmaceutical products. In May 2015, Endo announced the acquisition of a broad portfolio of 60 on-market products and nearly 70 R&D pipeline programs that will be incorporated into Litha from a subsidiary of Aspen Holdings, a leading publicly-traded South African company. The Aspen transaction, which is projected to close in the third quarter 2015, is expected to meaningfully expand Endo's pharmaceutical presence in South Africa and to be immediately accretive to earnings.
"The latest transaction further reinforces our commitment to grow and streamline our international business to align with Endo's focus on becoming a leading global specialty pharmaceutical business," said Rajiv De Silva, President and CEO of Endo. "We continue to make important progress in building Litha, including the recent addition of an experienced and proven general manager. This divestiture is the result of our strategic portfolio review and designed to focus efforts and resources on targeted growth priorities where Endo can make the most difference for patients. We are very proud of the contributions Litha has made in the establishment of the first vaccine manufacturing plant on the African continent. We wish Westrate and Immunotek much success in continuing this very important endeavor in coordination with the South African government."
Westrate and Immunotek were formed by experienced healthcare executives Selwyn Kahanovitz, Martin Kahanovitz and Morena Makhoana, the founders of Litha. The divesture underscores Litha Healthcare Group's continued commitment to help transform South Africa's public health system, particularly in the area of pediatric vaccines, and to support the development of local industrialists and entrepreneurs.
About Endo International plc Endo International plc is a global specialty pharmaceutical company focused on improving patients' lives while creating shareholder value. Endo develops, manufactures, markets and distributes quality branded pharmaceutical and generic pharmaceutical products as well as over-the-counter medications though its operating companies. Endo has global headquarters in Dublin, Ireland, and U.S. headquarters in Malvern, PA. Learn more at www.endo.com.
About Litha Healthcare Group Litha, headquartered in Midrand, South Africa, is a diversified healthcare group providing services, products and solutions to public and private hospitals, pharmacies, general and specialist practitioners, as well as government healthcare programmes. The company has three main divisions: Litha Pharma focuses on originator, generic and complementary medicines; Litha Medical focuses on devices, consumables and equipment and Litha Biotech focuses on human vaccines. Litha is an operating company of Endo International plc (NASDAQ: ENDP) (TSX: ENL), a global specialty pharmaceutical company focused on improving patients' lives while creating shareholder value. Learn more at www.endo.com or www.lithahealthcare.co.za.
Cautionary Note Regarding Forward-Looking Statements This press release contains "forward-looking statements" relating to the divestiture of certain products by Endo. All statements other than historical facts included in this press release, including, but not limited to, the statements by Mr. De Silva and other statements regarding the timing and the closing of the transaction, the expected benefits of the transaction and any assumptions underlying any of the foregoing, are forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown, or unknown risks or uncertainties materialize, actual results could vary materially from Endo's expectations and projections. Risks and uncertainties include, among other things, uncertainties as to the timing of the transaction closing; the possibility that various closing conditions to the transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay, or refuse to grant approval for the consummation of the transaction; other business effects, including effects of industry, economic or political conditions outside Endo's control; transaction costs; actual or contingent liabilities; as well as other cautionary statements contained elsewhere herein and in Endo's periodic reports filed with the U.S. Securities and Exchange Commission and in Canada on the System for Electronic Data Analysis and Retrieval ("SEDAR"), including current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K. Given these uncertainties, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. Endo expressly disclaims any intent or obligation to update these forward-looking statements except as required by law. Additional information about Endo is available at www.endo.com or you can contact Endo Investor Relations by calling (484) 216-0000.
SOURCE Endo International plc