Sector News

Endo looks to acquire Auxilium in $2.2 billion deal

September 17, 2014
Life sciences
Endo International is looking to acquire Auxilium Pharmaceuticals in a deal worth $2.2 billion.
 
Its offer of $28.10 per share in cash and stock represents a premium of 31% to Auxilium’s closing price yesterday (September 16), though the latter’s shares shot up 37% to over $29.50 in after-hours trading.
 
The chief attraction of Endo is Xiaflex (collagenase clostridium histolyticum) which is approved in the USA for Dupuytren’s contracture, which affects the connective tissue beneath the skin in the palm of the hand, and Peyronie’s disease, which causes a bothersome curvature of the penis during sex. It has a total of 12 Food and Drug Administration-approved products in urology, orthopaedic and other areas, including Stendra (avanafil), an oral erectile dysfunction drug, which are “natural complements to the men’s health and pain products in Endo’s pharmaceuticals portfolio”, the latter firm claims.
 
Rajiv De Silva, Endo chief executive, said the proposal would provide Auxilium shareholders “a substantial premium and immediate cash value for their investment…as well as the opportunity to participate in the upside potential of a leading global specialty healthcare company”. He added that Endo “stands ready to engage immediately with Auxilium, complete our confirmatory diligence, negotiate a definitive agreement and complete this exciting transaction”.
 
Auxilium is saying nothing for the moment about the Endo bid but just a week ago announced it was reducing its headcount by 30% in a bid to reduce operating expenses by more than $75 million. It is also in the process of acquiring Canadian biotech QLT.
 
By Kevin Grogan
 
Source: Pharma Times

Related News

April 10, 2021

Genentech aims high with new diversity goals, including doubling hires and spending $1B with diverse suppliers

Life sciences

Quita Highsmith, Genentech’s chief diversity officer, is helping the pharma double down on diversity and inclusion goals with a new 2025 plan. 

April 10, 2021

Merck CEO Frazier joins army of Black execs speaking out on restrictive voting-rights laws

Life sciences

Merck CEO Kenneth Frazier teamed up with former American Express executive Kenneth Chenault to protest a voting-rights law passed recently in Georgia.

April 10, 2021

Zimmer Biomet bundles robotic surgery, apps and digital health programs into one orthopedics package

Life sciences

By bringing together big data and robotic procedures, the ultimate goal of the connected suite is to take some of the guesswork out of orthopedic medicine. 

Send this to a friend