Endo Tax Edge for Deals Borrows From Valeant Playbook: Real M&A

Endo Health Solutions Inc.’s recent acquisition designed to lower its tax rate may be following Valeant Pharmaceuticals International Inc.’s blueprint for a lucrative takeover spree.

Endo shares are up 42 percent to a record after Chief Executive Officer Rajiv De Silva agreed last week to buy Canadian drugmaker Paladin Labs Inc. The deal will allow Endo to reincorporate in Ireland with a lower tax rate, giving it an edge as it pursues more pharmaceutical takeovers. It’s a tactic that helped Valeant make more acquisitions than any of its peers in the last three years and increase its stock price sevenfold, according to data compiled by Bloomberg.