Biotech Deal #1: Endo & Indevus

Endo Pharmaceuticals (ENDP) to Acquire Indevus Pharmaceuticals (IDEV)

In the first biotech deal of 2009, Endo Pharmaceuticals (ENDP) announced it has signed a definitive merger agreement with Indevus Pharmaceuticals (IDEV), whereby Endo will acquire 100% of the outstanding shares of Indevus for $370 million, or $4.50 per share, in upfront cash, with another potential $267 million, or $3.00 per share, in future consideration.

The future potential cash to Indevus shareholders will come in the form of two contingent rights, one in the form of a $2.00 per share payment for the approval of Nebido, and the second $1.00 per share payment for the approval of octreotide implant.

Indevus is currently trading at $5.24 per share, a 70% increase from the close yesterday. On December 26, 2008, we initiated coverage of Indevus at $2.71 per share with a Buy rating and $6.00 price target.

So far the biotech sector is off to an excellent start in 2009. The Endo-Indevus deal, along with recent comments by Pfizer's (PFE) CEO, Jeff Kindler, certainly keep us thinking it could be a very interesting year for deal-making.

Read the full analyst report on IDEV

Read the full analyst report on PFE

Read the full analyst report on ENDP

Read the full analyst report on IDEV

Read the full analyst report on PFE