Endo outbids Valeant with $15.7bn Salix offer as drug sector heats up


Ireland-based pharmaceuticals group Endo has moved to gatecrash Valeant's takeover bid for US gastrointestinal drugmaker Salix by making its own $15.7bn approach, compared with Valeant's $14.5bn offer. The activity is a further sign of the frenetic pace of deal making in the drugs industry, which last week saw AbbVie win a three-way fight for Pharmacyclics, a biotech company that makes a single cancer drug, with a $21bn offer. Almost $70bn of deals have been unveiled in pharma and biotech this year, according to Thomson Reuters, double the level of activity at the same point in 2014. Since the start of 2014, the global healthcare sector has seen $475bn of deals. Quebec-based Valeant had said it would use its non-US domicile and ultra-low tax rate to extract value from the deal, with the combined company enjoying a tax rate of 5%, compared to around 30% for Salix. Endo would be able to make similar savings after reincorporating in Ireland last year.


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