The Third Time Is Not the Charm for Endo Health Solutions Inc (ENDP)

In its most recent quarter, Endo Health Solutions Inc (NASDAQ:ENDP) reported a huge 152% spike in sales of Fortesta a (surprise, surprise!) low-testosterone treatment, as well as the return of Voltaren gel for joint osteoarthritis, which kicked in $36 million after providing no revenue last year because of a Novartis AG (ADR) (NYSE:NVS) plant shutdown. While naturally a lower-margin business, Endo’s generic division also delivered rapid growth of 23% to $178 million.

Another factor that can’t be overlooked is that Endo Health Solutions Inc (NASDAQ:ENDP) hasn’t been shy about putting the for-sale sign out in the front yard. In late January, Warner Chilcott Plc (NASDAQ:WCRX) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) were both rumored to be interested in acquiring Endo. Things have certainly changed since then, with Actavis Inc (NYSE:ACT) (formerly Watson Pharmaceuticals) purchasing Warner Chilcott Plc (NASDAQ:WCRX) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) currently arranging financing to purchase privately held eye products maker Bausch & Lomb for $8.7 billion. That shouldn’t, however, discourage other suitors looking for hybrid growth in both branded and generic drugs from making a play for the very profitable Endo.

Finally, this is a diversified health-care operation. If one segment falters, there are others to pick up the slack. Barring an unforeseen recall or a global depression, Endo is primed to keep pumping out profits.

In short, it may be the End-o for Aveed, but it could be the start of something better for the remainder of Endo if you dig a bit deeper.

The article The Third Time Is Not the Charm for Endo Health Solutions originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned, either.

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