Endo Offers To Buy Auxilium Pharmaceuticals For $2.2 Bln

(RTTNews) - Endo International plc (ENDP, ENL.TO) Tuesday said it has offered to buy Auxilium Pharmaceuticals Inc. (AUXL) in a cash-and-stock transaction valued at $2.2 billion. Shares of Auxilium surged over 45 percent, following the news.

Endo has offered to buy all the shares of Auxilium Pharmaceuticals for $28.10 a share in a cash and stock transaction. The bid represents a premium of 31 percent to Auxilium's closing price on September 16 and a 40 percent premium to the average 30 days closing price.

Endo plans to fund the deal using existing cash on hand and debt financing, indicating the consideration would be about equal mix of cash and stock.

Endo CEO Rajiv De Silva said, "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."

"This transaction is well aligned with Endo's strategy to pursue accretive, value creating organic growth opportunities," continued De Silva.

In December, U.S. FDA approved the expanded use of Auxilium's Xiaflex as the first drug to treat men with bothersome curvature of the penis - a condition known as Peyronie's disease.

ENDP closed Tuesday's trading at $65.17, up $0.56 or 0.87%, on the Nasdaq. The stock further gained $3.83 or 5.88% in after-hours trade.

AUXL closed Tuesday's trading at $21.52, down $0.34 or 1.56%, on the Nasdaq. The stock further gained $9.18 or 42.66% in after-hours trade.