June 24 (Reuters) - Drugmaker Endo International Plc said it would buy privately owned DAVA Pharmaceuticals Inc for $575 million in cash to bolster its generics portfolio.
Shares of Endo, which makes branded and generic drugs, rose as much as 4 percent in early trading.
The deal, expected to add to Endo’s 2014 adjusted earnings per share, has an additional cash consideration of up to $25 million on achieving certain sales milestones.
The deal gives Endo access to DAVA’s generics portfolio that includes 13 products which are on the market and more than five products expected to be launched in 2015.
DAVA had revenue of about $131 million in 2013.
Endo has seen decreasing sales for its top products, pain treatments Lidoderm and Opana ER, due to generic competition and has been lately acquiring companies to boost profit.
Last year, Endo bought Canadian peer Paladin Labs Inc to expand its presence in Canada and emerging markets, and also bought privately held generics-maker Boca Pharmacal.
Endo’s shares were up 4 percent at $71.53 on the Nasdaq. (Reporting by Shailesh Kuber; Editing by Don Sebastian and Maju Samuel)