10/9/2014 6:02:12 AM
October 9, 2014
By Mark Terry, BioSpace.com Breaking News Staff
Endo International plc (ENDP), headquartered in Dublin, Ireland, and Auxilium Pharmaceuticals, Inc. (AUXL), located in Chesterbrook, Penn., announced today they have signed an agreement to merge. Endo will purchase all outstanding shares of Auxilium common stock for $33.25 per share in a cash and stock transaction. The deal is valued at $2.6 billion and has been approved by the boards of both companies.
Endo is a global specialty healthcare company that develops, manufactures, and commercializes branded and generic drugs and devices. Auxilium is a specialty biopharmaceutical company with a portfolio of 12 approved products, including edex, Osbon ErecAid, and STENDRA for erectile dysfunction, and XIAFLEX for the treatment of Peyronie’s disease.
“We are pleased to have reached this agreement with Auxilium, which we believe will create value for both Endo and Auxilium shareholders, as well as for patients, customers and employees,” said Rajiv De Silva, Endo’s president and CEO in a statement. “By adding Auxilium’s complementary commercial portfolio, we believe this transaction is aligned with our strategy of pursuing accretive, value creating growth opportunities. We intend to leverage Auxilium’s leading presence in men’s health, as well as our R&D capabilities and financial resources to accelerate the growth of XIAFLEX and Auxilium’s other products.”
On September 10, BioSpace reported on an announcement made by Auxilium that the company was restructuring its business in hopes of creating more than $75 million in cost savings. Those cuts included a workforce reduction of approximately 30 percent. Auxilium planned to consolidate three sales forces into two and refocus its R&D programs on cellulite and Frozen Shoulder Syndrome.
In addition, in June Auxilium had announced plans to merge with Canadian company QLT Inc. (QLTI), which focuses on the development of innovative orphan products in the ophthalmology market. That deal was terminated prior to entering into the Endo merger agreement.
The Endo-Auxilium deal is expected to create annual cost synergies of about $175 million. Endo’s portfolio will have a broader urology and orthopedic content and plans to expand on the performance of Auxilium’s XIAFLEX.
“We are proud of the work Auxilium has done to develop a portfolio of important products that are improving the lives of patients to create significant stockholder value,” said Auxilium president and CEO Adrian Adams in a press release. “We believe this transaction is the culmination of those efforts.”
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