The acquisition of Auxilium is expected to help Endo save annual expenses of about $175 million. Under the terms of the deal, Auxilium abandoned its plans to carry out a tax-inversion deal with Canada-based maker of ocular products QLT Inc., which would have allowed the company to redomicile to Canada. The cash portion of the takeover bid is planned to be financed through a combination of cash on hand and committed debt financing from Citi. The new sweetened price also represents a 12% premium to the closing price of Auxilium on Wednesday. Auxilium declined that bid, saying it was significantly undervaluing the company. This is around 55% higher than the companys value on September 16th, when it received its first acquisition offer by Endo for $28.10 per share. Rajiv De Silva said in a statement: “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.”Īccording to the joint statement of the two companies, Endo will pay a price of $33.25 per share. The Chief Executive Officer of Endo – Mr. The takeover still needs the approval of Auxiliums investors, but the transaction is expected to be finalized within the first six months of 2015. ![]() in a $2.6-billion cash-and-stock deal, gaining access to testosterone treatments.Īuxilium shareholders will be provided with the opportunity to choose between cash, stock or a combination of both. ![]() Deutsche Bank and Morgan Stanley advised Auxilium, and Willkie Farr & Gallagher and Morgan, Lewis & Bockius provided legal advice.Endo International Plc agreed to purchase Auxilium Pharmaceuticals Inc. ![]() This transaction is aligned with our strategy of pursuing accretive, value creating growth opportunities.”Ĭitigroup and Lazard advised Endo, and Sullivan & Cromwell “By adding Auxilium’s complementary commercial portfolio, we believe “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,” Rajiv De Silva,Įndo’s chief executive, said in a statement. It also said it expected to save $175 million a year by combining the companies. With the deal, Endo said it would have a stronger position in the market for men’s heath and urology drugs. The demise of a pending inversion will be welcome news in Washington, where legislators and the Obama administration have cracked down on the deals. It will be able to bring Auxilium’s earnings into its low tax base, allowing it to pay a bit more up front.Īnd Auxilium, which had been planning its own inversion with an acquisition of QLT, Last year, showed off the benefits of reincorporating abroad with the deal. Endo, previously a United States company that moved to Ireland in an inversion The deal has ramifications for the boom in inversion deals, which have been a driving force in many health care transactions this year. Endo increased its offer to $33.25 a share to seal the deal, a 55 percent premium above Auxilium’s share price theĪuxilium shareholders will be able to select a mix of cash and stock, or all cash or all stock. Credit Auxilium PharmaceuticalsĮndo International agreed on Thursday to acquire Auxilium Pharmaceuticals for $2.6 billion including debt in the latest deal to reshape the drug industry.Įndo made an unsolicited offer of $28.10 a share for Auxilium last month, which was rejected. Auxilium is a biopharmaceutical company based in Pennsylvania.
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