Business

Endo to take over American Medical Systems for $2.6bn

Blood pressure being taken
Image caption Endo expects the deal with American Medical to bring cost savings of at least $50m by 2013.

Endo Pharmaceuticals Holding has agreed to buy medical devices maker American Medical Systems (AMS) for about $2.6bn (£1.6bn).

Endo develops and markets drugs to treat pain, bladder cancer and prostate cancer.

American Medical develops and supplies urological medical devices that help restore male and female pelvic health.

The combined company will have 4,000 workers and 2011 revenues of about $3bn, said Endo.

"The combination of AMS with Endo's existing platform will provide additional cost-effective solutions across the entire urology spectrum," Endo said in a statement.

Endo expects cost savings of at least $50m by 2013.

The deal is the third significant purchase by the company over the past year.

In November, Endo bought Qualitest, a private company that makes generic drugs in areas such as pain and urology.

In July last year, it bought HealthTronics, a supplier and manufacturer of services and devices mainly for urology treatments.

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