Endo to sell off AMS

Endo International PLC has put its medical-device unit up for sale, according to people familiar with the matter, just three years after buying the business.

The Minnetonka, Minn.-based business, known as AMS, 0077.HK +0.93% supplies devices to treat pelvic disorders such as incontinence and recorded $250 million in revenues in the six months ended June 30. That was 19% of Endo's total revenue in the period.

AMS, which has attracted interest from private-equity firms and other health-care companies, could fetch about $2 billion in a sale, the people said.

That is less than the $2.9 billion Endo paid for the business in 2011. Endo in April agreed to pay roughly $830 million to settle claims that vaginal mesh inserts sold by AMS led to injuries. It is not clear why Endo is putting the business up for sale now.

Earlier this year, Endo, then based in Malvern, Pa., bought Canada's Paladin Labs Inc. The $1.6 billion deal allowed Endo, which is also a drug maker, to shift its domicile to Ireland, where corporate tax rates are lower. Such takeovers, known as inversions, have proliferated lately among health-care companies—and drawn criticism from politicians and others.

It is not clear whether any of the health-care companies pursuing AMS could use the deal to do an inversion of its own.

Earlier this month, Endo completed the acquisition of Dava Pharmaceuticals Inc., a generic pharmaceuticals specialist, for about $600 million.

 

Could be the best thing to happen for us. It really depends on who buys us.

 

Its over. If private equity are in the mix its sell the pieces and let the other crap die. If Rajiv could get 2 billion as mentioned in the WSJ journal he would do back flips. No effing way anyone will pay 2 billion.

Mens will be sold
BPH is losing its ass.
Womens health will die.

 

Only $2 Billion? Someone call Tony Bihl maybe he can find someone to pay another 900 million? Where did Dave Holveck disappear to?

I bet you are correct in that the company is broken up and sold at a fraction of what endo paid. its party time in Tonka.

 

They should sell PH to a company that understands capital equipment as AMS certainly don't and concentrate on the core PH and WH products. One of the big laser companies would probably buy it but for a lot less than AMS paid, $715m jeez, nice one Marty.

 

Sure, the key word is "should." Will they? Not probable. Remember camille like penis implants.

Where I disagree is that another laser company buying laserscope. The new laser company likely wants nothing to do with a company that is about to lose all of its leverage in the mobile market. The contracts expire at the end of this year and we already cant enforce the current contract why on earth would another company wish to get into a terrible, rigid relationship with mobiles who sell competitor lasers and fiber?

Besides, no one is buying greenlight boxes and given the amount of fiber on the shelf, especially this time of year will make your head spin. Just wait until Rajiv has to announce that fiber sales are down and our share of the bph market has declined again to the button or competitive lasers sold by our mobile partners!

A perfect storm of failure. The good news is that someone may buy greenlight on the cheap (hello fortec)....very cheap. Thanks for the tip Camille!

 

Lot of smoke coming out of the Boston Scientific camp that they are extremely interested...

Can't imagine that would be good news for current AMS reps; specifically Women's Health reps.

 

Sure. They have 100 reps selling in this space and not a single womens rep would be asked to join bsc. Makes perfect sense.

 

Sure. They have 100 reps selling in this space and not a single womens rep would be asked to join bsc. Makes perfect sense.

 

Is there an echo in here?

 

Just the empty, echoing sound of AMS missing its number again. We hear every year its the same sound of a failed leadership incapable of assessing the market and our inability to forecast.

1. raising prices is not a strategy
2. we are losing share everywhere except mens health and have been for years
3. everyone is looking to leave.
4. 2005/6 was a generation ago.

 

But Camille says it is because we don't have the data? We don't have the strategy? Since Camille knows everything and makes every decision ... How are we doing with your interpretation of the data and your designing strategy and all your decision making? Big ego, big fall. Bye, bye

 

Cook Medical, Boston, Coloplast or Medtronic?

If it's Coloplast I want to be the first one to shake Dr Wilson's wrinkly old hand.

 

Can't imagine Cook nor Medtronic has much interest in this space.

Can Coloplast afford a $2 billion price tag?

Not saying it will happen, but Boston Scientific would make sense. They are already in this space, and this would give them an approx. 75-85% of market share in the Women's Health space.

 

No chance of 2 billion. 500 Million in total sales. 3x multiple is 1.5 billion and this would be a VERY generous offer. But its a penile pipe dream.

Camille knows this data-women and PH sales suck and no company in their right mind (unless Dave Holveck is running it) is going to pay a premium for a line that has declining sales. 1.2 Billion buys it all. Of course, nearly everyone in minnetonka lose their jobsRoss stays and gets a raise. Camille will take dev and Pam with him and maybe steve.

Laugh if you will but mens health can command a premium but the other divisions are junk. This is leverage if you are a buyer. I would imagine that BSC understands this.

 

You are probably right. AMS overpaid for laserscope when it was tolerable. Its not tolerable today. All you have to do is look at the healthtronics disaster to know that Rajiv will accept far less than market value to purge the steaming pile of AMS. I agree with the poster that thinks the company will be broken up. PH is built in California and only a tiny fraction of those work here in Minne. Mens health is the gem but they cant ride the gravy train for ever. The wild card is womens. Litigation risk has been minimized but not close to being eliminated and its a cespool of finger pointing.

My guess:

Mens health 650 Million
Prostate 325 million
Women 240 million.

Camille will get about 4 million to buy belts and skinny jeans. Scratch and dent sale on Bren Road!

 

Now the big question: Who enters the dance?

Women's Health is terrifying for AMS in particular (and whomever takes on that "burden"). $830 million mesh settlement will be inherited by the new owner.

 

And all the Who's Down in W

 

Hey now! News to be disclosed on the horizon.....looks a lot like this.....

 

Endo owning us is not the problem. That's the best thing that ever happened to us. The problem was hired by Dave and still angrily wonders the hallways acting like he understands the business. The only problem with Endo is that they are in Penn and don't see Minn firsthand and therefore, don't make any changes.