Endo offers $2.2bn to acquire Auxilium
Irish pain drugmaker Endo International has proposed $2.2bn offer to acquire biopharmaceutical company Auxilium Pharmaceuticals.
Endo president and chief executive officer Rajiv De Silva said: "Endo's proposal would provide Auxilium shareholders a substantial premium and immediate cash value for their investment in Auxilium, as well as the opportunity to participate in the upside potential of a leading global specialty healthcare company.
"In light of the highly complementary nature of our two companies' commercial portfolios, the growth potential of Auxilium's Xiaflex and the significant synergy opportunities, we believe this compelling strategic combination would result in and create benefits for both Endo and
Auxilium shareholders, as well as for patients, customers and employees."
As per the terms of the transaction, consideration would also involve equivalent mix of cash and Endo stock, which would be funded through a blend of existing cash on hand and debt financing.
De Silva added: "This transaction is well aligned with Endo's strategy to pursue accretive, value creating organic growth opportunities.
"We expect that Endo's leading presence in men's health, combined with our R&D capabilities and considerable financial resources will accelerate the growth of Xiaflex and Auxilium's other products, enhancing the value of the combined company's portfolio.
The Pennsylvania, US-based Auxilium has been badly hit with sluggish sales of its testosterone gel Testim, resulting in plans for about 190 job cuts in a bid to save $75m per year.