Endo buys Auxilium for $2.6 billion
pharmafile | October 10, 2014 | News story | Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | Endo, Testim, Testopel, auxilum
Endo International has agreed a $2.6 billion deal to buy Auxilium Pharmaceuticals in order for the company to gain access to a broader range of men’s health products.
The boards of directors across both companies have unanimously approved the transaction which is valued at $2.6 billion, including the repayment and assumption of debt.
The deal will include an election mechanism for Auxilium stockholders to elect cash and stock, all-stock or all-cash consideration. The per share consideration represents a premium of 55% to Auxilium’s closing price on 16 September, the day Endo made public its proposal for Auxilium.
Endo says that when the deal is completed its pharmaceutical portfolio will have a broader offering of urology and orthopaedic products that are ‘natural complements’ to its current men’s health and pain products.
Auxilium’s testosterone products include Testim, a topical gel, and Testopel, a pellet that is embedded under the skin. Last year they generated $271 million in sales.
Rajiv De Silva, president and chief executive officer of Endo, says: “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] Auxilium’s products.”
Adrian Adams, chief executive and president of Auxilium, adds: “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.
“We believe this transaction is the culmination of those efforts. On behalf of the Auxilium board and management team, I want to thank our dedicated employees, engaged partners and strategic advisors for their continued hard work and commitment, which have been instrumental in building Auxilium into the diversified specialty biopharmaceutical company it is today.”
Ben Adams
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