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What: Shares of health solutions provider Endo Health Solutions (NASDAQ:ENDP) vaulted higher by as much as 17% late in the day, on reports that it may put itself up for sale.

So what: The story broke shortly after 2:30pm ET that, according to a Reuters report, Endo is in talks with interested parties to sell the company. Those parties, based on that report, include Valeant Pharmaceuticals (NYSE:VRX) and Warner Chilcott (NASDAQ:WCRX). Reuters also notes that Valeant declined to comment when asked, while both Endo and Warner Chilcott representatives couldn't be reached for comment.

Now what: As usual, I strongly discourage anyone from chasing companies involved in buyout rumors because, just as often as these rumors start, they can die. From a fundamental perspective, I noted my approval of Endo three weeks ago, which has a well-diversified and highly-profitable portfolio of branded and generic drugs, as well as medical devices and technologies. Based on its current single-digit forward P/E ratio, I believe it more than takes into account the ongoing probe by the U.S. government into its numbing agent, Lidoderm. Still, I'd really shy away from taking a position here with rumors of a buyout swirling.

Craving more input? Start by adding Endo Health Solutions to your free and personalized Watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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