Q: It was mentioned in the 31 March 2025 end quarterly report that the company is buying out some asset back from Endo for 100-mil plus inventory. Do you think that the asset which company purchased will do well as Endo acquired it and kept it. Now they are disposing it. Is company found them not valuable enough to generate good return? If that is the reason then why GUD bought it? Will GUD manage to generate good return out of it?
Thanks
Piyush
Thanks
Piyush
5i Research Answer:
GUD is buying Paladin Pharma from Endo. Paladin was the company that the founders of GUD built and sold for billions a decade or so ago. ENDO is in bankruptcy and thus is selling most assets and we would not view the sale as meaning Paladin is a bad company. GUD has waited years to get Paladin back and of course knows it well. We would consider it a very good purchase, at $120M, considering Paladin was sold for $2.7B in 2014. We think GUD will do a good job with the asset, but it may take time to show results.