January 23, 2015
By Mark Terry, BioSpace.com Breaking News Staff
As Chesterbrook, Pa.-based Auxilium Pharmaceuticals wraps up its sale to Endo International plc , six of its executives will cash in big, with a combined payday of around $31 million, according to a recent filing with the U.S. Securities and Exchange Commission.
Announced on Oct. 9, 2014, Dublin-based Endo International plc will acquire Auxilium for about $2.6 billion, including repayment and assumption of debt.The SEC filing broke down stock option payments for six of the Auxilium executives as a result of the deal. The breakdown provides Adrian Adams, president and chief executive about $15.5 million, about half of the total of $31 million. Andrew Koven, chief administrative officer and general counsel will receive about $5.4 million, James Tursi, chief medical officer will get about $3.9 million, Alan Wills, executive vice president, corporate development will gather in $3.9 million, Andrew Saik, chief financial officer, will receive $3 million and James Fickenscher, former chief financial officer, will garner about $2.3 million.
In addition to these stock deals, the acquisition deal offers severance payments in the six and seven figures if any of them are terminated without cause or their contracts don’t get renewed within one year after the acquisition deal closes. The severance packages run from $877,361 for Wills to $3.9 million for Adams.
Auxilium is a specialty biopharmaceutical company with a focus on men’s healthcare, orthopedics, dermatology and other areas. It currently has a portfolio of 12 approved products, including edex (alprostadil), an injectable for erectile dysfunction and TESTOPEL (testosterone pellets), a long-acting implantable testosterone replacement therapy.
Endo is an international specialty healthcare company that develops, manufactures, markets and distributes branded and generic drugs and medical devices. The company has global headquarters in Dublin, Ireland, with U.S. headquarters in Malvern, Pa.
“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, president and chief executive officer of Endo 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. We look forward to working with the Auxilium team to achieve the growth and synergy potential for this compelling strategic combination.”
A special meeting of shareholders will be held Jan. 27, 2015. Auxilium shareholders will then vote on the proposed sale.
BioSpace Temperature Poll
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