Endo International scraps India deal on regulatory delays

Despite the tremendous hard work out in by the Indian government to improve the country’s ease of doing business rank, it appears that some officials are out of sync.

The latest casualty is the $190-million proposed acquisition, announced in April last year. Nasdaq-listed Endo International plc on Thursday announced that its subsidiaries have terminated their respective agreements to acquire Somerset Therapeutics and the business of its India-based affiliate Wintac. The foreign company has attributed the inordinate delay in regulatory approvals in India.

The proposed transaction was subject to requisite regulatory approvals in the US and India and customary closing conditions. Endo’s communique indicates that US approvals were in place. The deal was initially expected to be completed by the end of 2018. But even 10 months since the deal announcement, there is neither any guarantee nor outlook on when the Indian approvals would come.

“Endo has worked diligently to consummate this transaction since executing definitive agreements in April 2018; however, certain regulatory approvals in India have taken longer than anticipated and we do not have clarity as to when those approvals may be received,” said Paul Campanelli, president, and chief executive officer, Endo. “We, therefore, exercised our right to terminate the acquisition agreements today and we remain focused on continuing to enhance the value of our businesses.”

There were no penalties or payments for axing the deal.

Endo’s subsidiaries, Endo Ventures Ltd, Par Pharmaceutical, Inc and Par Formulations Private Ltd, have discontinued their respective agreements to acquire Somerset Therapeutics, LLC, a New Jersey-based specialty pharmaceutical company, and the business of its India-based affiliate Wintac Ltd, which operates as Somerset Therapeutics’s contract developer and manufacturer. Endo has global headquarters in Dublin, Ireland, and US headquarters in Malvern, PA.

In April 2018, Endo said it was paying approximately $190 million in total for Somerset Therapeutics and Wintac’s business. K&L Gates and Shardul Amarchand Mangaldas & Co are acting as Endo’s legal counsel. A spokesperson for Shardul Amarchand Mangaldas & Co did not immediately respond to a message for comment.

Focusing on the fast-growing US sterile injectable drugs market, Somerset Therapeutics’ portfolio includes eight commercial products as well as a pipeline of more than 40 products, over 25 of which have been submitted for USFDA nod