Endo Pharma paying $1.2 billion for Qualitest

NEW YORK (AP) - Drug developer Endo Pharmaceuticals Holdings says it is buying Qualitest Pharmaceuticals for $1.2 Billion in a move to diversify its business and strengthen its position in the generic drug market.

Endo, based in Chadds Ford, Pa., says it will finance the buyout with $500 million in cash, $300 million in credit, and up to $400 million in financing. Endo will retain Qualitest's facilities in Huntsville, Ala., and Charlotte, N.C., as well as its own facility in Westbury, N.Y.

The deal will add about $400 million to Endo's revenue, the company says, and about 40 cents per share in net income. The company reaffirmed its 2010 outlook.