This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
NEW YORK (AP) — Endo International PLC says it is making an unsolicited offer for Auxilium Pharmaceuticals that values Auxilium at $28.10 per share.
The deal is worth $1.41 billion in cash and stock, based on Auxilium's shares outstanding. Endo values the offer at $2.2 billion, including the assumption of Auxilium's debt. It comes at a premium of 31 percent based on the Tuesday closing price of Auxilium shares.
Dublin-based Endo said the two companies have complementary products and added that there are significant opportunities for savings. Auxilium did not immediately respond to a request for comment.
Auxilium, based in Chesterbrook, Pennsylvania, is struggling with reduced sales of its testosterone gel Testim and said this month that it would cut about 190 jobs, or 30 percent of its workforce, as part of a plan to save $75 million per year.
The company also makes Xiaflex, a drug approved to treat two rare conditions: it was originally approved as a treatment for Dupuytren's contracture, which makes the tendons of the hand thicken and shorten, causing the fingers to curve inward. In December regulators approved it as a treatment for Peyronie's disease, which causes abnormal curvature of the penis. Auxilium also sells the impotence drugs Stendra and Edex.
Auxilium Pharmaceuticals Inc. shares are up about 4 percent for the year to date. The stock surged $8.48, or 39.4 percent, to $30 in aftermarket trading.
Endo has transformed itself from a drug company to a larger drug and medical device maker over the course of several years, spending around $4.5 billion on a spate of acquisitions. In mid-2013 the company said it wanted to cut about $325 million in annual spending, eliminating about 700 jobs. In January the company agreed to sell its HealthTronics urology division.
Endo relocated to Ireland this year as part of its purchase of Paladin Labs, a $1.5 billion deal that was announced in November. It changed its name to Endo International PLC from Endo Health Solutions. Shares of Endo gained 4.3 percent to $68 in late trading.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.