Endo International, a global specialty healthcare company focused on improving patients' lives while creating shareholder value, has completed the acquisition of DAVA Pharmaceuticals, Inc., a privately-held company specialising in generic pharmaceuticals, with a portfolio of marketed, pre-launch and pipeline products, for $575 million in cash, with additional cash consideration of up to $25 million contingent on the achievement of certain sales milestones. The DAVA portfolio is well-positioned for continued strong financial performance with its existing commercial products and attractive near-term pipeline, and is a natural fit with Endo's US generics business.

"We are encouraged by the earlier than expected close of the DAVA acquisition and are excited by the addition of the business to our generics portfolio." said Rajiv De Silva, president and chief executive officer of Endo.  "The closing of DAVA further strengthens Endo's generics platform and enhances our earnings growth and cash flow in 2014 and beyond."

Endo's estimates are based on projected results for the twelve months ended Dec. 31, 2014 and management's current belief about prescription and procedure trends, pricing levels, inventory levels and the anticipated timing of future product launches and events. The company's guidance for reported (GAAP) earnings per share does not include any estimates for potential new corporate development transactions. For the full twelve months ended Dec. 31, 2014, at current exchange rates.

Endo estimates: Total revenue to be between $2.78 billion and $2.86 billion, Reported (GAAP) diluted loss per share to be between $1.56 and $1.36, Adjusted diluted earnings per share to be between $4.00 and $4.20, Adjusted diluted earnings per share assume full year adjusted diluted shares outstanding of 157 million.

The company's 2014 guidance is based on certain assumptions including: Adjusted gross margin of between 63 per cent and 65 per cent; Year-over-year mid-to-high single-digit percentage decrease of Adjusted Operating Expenses; Adjusted interest expense of approximately $220 million; Adjusted effective tax rate of between 23 per cent and 24 per cent.

Non-GAAP Adjusted net income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for US. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, we stress that these are Non-GAAP financial measures that have no standardised meaning prescribed by US GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardised definitions, Non-GAAP Adjusted net income and its components (unlike US. GAAP net income and its components) may not be comparable to the calculation of similar measures of other companies. These Non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses performance.