Auxilium Pharma succumbs to higher, $2.6 billion, offer from Endo

9 October 2014

Having previously rejected a $28.10 a share takeover offer from Ireland-headquartered Endo International (Nasdaq: ENDP), USA-based Auxilium Pharmaceuticals (Nasdaq: AUXL) has now agreed to be acquired by Endo for $33.25 per share, or $1.67 billion.

This is a 55% premium to Auxilium's closing price when Endo made public its proposal to buy Auxilium. Auxilium’s shares rose 11% in premarket trading to $33, while Endo shares were down 0.7% at $70.50.

The addition of Auxilium's leading men's health products and development portfolio is expected to significantly enhance Endo's branded pharmaceutical business. The transaction, likely to close in the first half of 2015, is expected to be immediately accretive to Endo, which said it will generate up to $175 million of annual run rate operating expense reductions inclusive of the $75 million of reductions previously announced by Auxilium.

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