Endo offers to buy Auxilium Pharmaceuticals for $2.2 billion

Ireland-domiciled pain drugmaker Endo International (Nasdaq: ENDP) has delivered an unsolicited proposal to acquire all of the outstanding shares of US men’s health specialist Auxilium Pharmaceuticals (Nasdaq: AUXL) in a $28.10 per share in a cash and stock transaction valued at $2.2 billion.

Endo's proposal represents a premium of 31% to Auxilium's closing price on September 16, 2014 and a 40% premium to the average closing price of Auxilium shares for the previous 30 days. Under the terms of the proposal, the consideration would include an approximately equal mix of cash and Endo stock. Endo intends to fund the transaction through a combination of existing cash on hand and debt financing. Endo's proposal is subject to the completion of its due diligence review and the negotiation of mutually acceptable definitive transaction agreements containing customary closing conditions.

Auxilium shares leapt 41% to $30.30 in after-hours New York trading yesterday, while Endo shares rose 4.6% to $68.20.