Jefferies & Company Likes Endo Pharmaceuticals (ENDP) Acquisition Plans

Jefferies & Company analysts Corey Davis, Graig Suvannavejh and Oren G. Livnat maintained their Buy rating for shares of Endo Pharmaceuticals (NASDAQ: ENDP), with a price target of $26 per share.

The analysts wrote that after announcing plans to acquire HealthTronics Inc. (NASDAQ: HTRN) for $258 milion, Endo Pharmaceuticals was finally headed in the right direction.

The acquisition will make Endo Pharmaceuticals less dependent on government price-regulated pharma and that with $900 million more in cash, the company can make further acquisitions.

The Jefferies & Company analysts wrote, "adding HTRN will broaden Endo's urology reach, offering services to complement its existing drugs and drug candidates (i.e., Valstar, Urocidin, Vantas, Aveed, and Fortesta). HTRN brings strong relationships with urologists (touching 1/3 of all US urologists), which should enhance the company's ability to cross-sell. In return, HTRN will leverage Endo's balance sheet to facilitate M&A in smaller but higher growth areas (e.g., anatomic pathology lab services, cryoablation)."