Endo International announced the strategic divestiture of a portfolio of device, vaccine and other non-core products from its international subsidiary in South Africa, Litha Healthcare Group, to a consortium comprised of Westrate Trade and Invest Proprietary (Westrate) and Immunotek (Pty) Limited (Immunotek).
The transaction is expected to be completed in the fourth quarter of 2015 subject to regulatory consents and is not expected to have a material impact on Endo’s financial results this year. This divestiture continues the transformation of Litha and strengthens its strategic focus on pharmaceutical products.
In May 2015, Endo announced the acquisition of a broad portfolio of 60 on-market products and nearly 70 R&D pipeline programs that will be incorporated into Litha from a subsidiary of Aspen Holdings, a leading publicly-traded South African company.
The Aspen transaction, which is projected to close in the third quarter 2015, is expected to meaningfully expand Endo’s pharmaceutical presence in South Africa and to be immediately accretive to earnings.
"The latest transaction further reinforces our commitment to grow and streamline our international business to align with Endo’s focus on becoming a leading global specialty pharmaceutical business," said Rajiv De Silva, President and CEO of Endo.
Westrate and Immunotek were formed by experienced healthcare executives Selwyn Kahanovitz, Martin Kahanovitz and Morena Makhoana, the founders of Litha.
The divesture underscores Litha Healthcare Group’s continued commitment to help transform South Africa’s public health system, particularly in the area of pediatric vaccines, and to support the development of local industrialists and entrepreneurs.