Ireland-based Endo International has signed a definitive agreement to acquire US-based specialty pharmaceuticals company Dava Pharmaceuticals.

The purchase price of Dava Pharmaceuticals is $575m in cash, with additional consideration of up to $25m provided the achievement of certain sales milestones.

Endo president and CEO Rajiv De Silva said: "Dava is well-positioned for continued strong and highly predictable financial performance with its existing commercial portfolio and attractive near-term pipeline, and is a natural fit for our generics business.

"The transaction is expected to be complete in the second half of this year."

"With Endo’s sharp focus, lean operating model and improved execution within our core businesses, strategic acquisitions will continue to play a key role in maximising our growth potential and cash flow to drive future value for Endo shareholders."

Subject to requisite regulatory approvals and customary closing conditions, the transaction is expected to be complete in the second half of this year.

Skadden, Arps, Slate, Meagher & Flom is acting as legal counsel to Endo International, while Dechert as legal counsel to Dava Pharmaceuticals.

Oppenheimer is acting as Dava Pharmaceuticals’ lead financial advisor. Jefferies also advised Dava Pharmaceuticals in the deal.