Boston, MA 09/18/2014 (wallstreetpr) – According to reports, Endo International plc – Ordinary Shares (NASDAQ:ENDP) has decided to make an unsolicited offer of $1.4 billion to acquire Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL). On the basis of the offer made by ENDP, each share of AUXL is valued at $28.10, which is fair enough in regard with present market cap of the company.
Insights of the deal:
As per the reports, the offer is worth $1.4 billion in stocks and cash, based on Auxulium’s outstanding shares. Ordinary Shares (NASDAQ:ENDP) assumes that the deal will cost it around $2.2 billion after inclusion of various debts that AUXL might have incurred so far. If the price offered by ENDP is compared with the current share price of AUXL, then one can see a direct surge of 31% in premium. When reporters asked Ordinary Shares (NASDAQ:ENDP) to comment on this deal, it said that both the companies had a lot of things and products in common, so this deal would help both of them to survive in the market and perform up to everyone’s expectations. At the same time, AUXL refused to comment on this matter.
As per the reports, nowadays Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) is struggling badly for surviving. The main reason behind its struggle is nothing but the reduced demand of testosterone gel Testim produced by AUXL. After the below expectations performance, AUXL announced recently that it would cut down around 30% (190) jobs in the near future in order to work-out its plan of saving $75 per annum. AUXL is known for producing drug Xiaflex, which is used for the treatment of Dupuytren’s contracture. The patients of this disease suffer from hand shorten and thicken, which further causes fingers to turn inward. In the month of December 2013, it received the approval of manufacturing this disease for the treatment of Peyronie’s disease. After the announcement of this acquisition news, the shared of Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) jumped by 39.4% in aftermarket trading.
