Cox Padmore Skolnik & Shakarchy LLP
866-716-3813 Blog Contact

Endo International engages in acquisition

In a move meant to increase the amount of branded pharmaceuticals it can offer, Endo International Plc has opted to acquire Auxilium Pharmaceuticals Inc. In New York, Auxilium's shares recently jumped 9 percent, and Endo's stock fell nearly 6 percent during the same period. Additionally, Auxilium's testosterone drugs, Testopel and Testim, will become part of Endo's offerings.

Endo International announced its plans to purchase Auxilium back on Sept. 16. The price Endo plans on paying is $33.25 for each share, and this will equate to about $2.6 billion. Those who own shares of Auxilium will have the option of receiving stock, cash or a combination of both for their shares in the company. The price paid is over 50 percent higher than what Auxilium was valued at when Endo International announced its intention to purchase.

Though the Food and Drug Administration has expressed concerns over the use of testosterone drugs, Auxilium Pharmaceuticals still showed a profit of $275 million in 2013. Endo International plans to cut its spending on research and development after the acquisition. The chief executive officer of the corporation says the company will be able to do this by focusing more on drugs that carry fewer risks and lower costs. Due to the acquisition, Auxilium will also be able to garner tax benefits because Endo is incorporated in Ireland.

Business acquisitions and mergers is a complex, and it may be important for parties to such transactions to understand the legality the actions. In addition, because the involved parties may have competing interests, negotiations may become adversarial. However, business attorneys may be able to help clients protect their interests in negotiations with the other party.

Source: Businessweek Bloomberg, "Endo to Buy Auxilium for $2.6 Billion to Gain Men's Drugs", David Welch and Cynthia Koons, October 09, 2014

No Comments

Leave a comment
Comment Information

Consult Our Skilled, Pragmatic Manhattan Commercial Litigation Attorneys

Tap To Request An Exploratory Consultation ยป

Entrepreneurial, Corporate and Individual Legal Services For Domestic And International Clients

To Request A Consultation By Phone, Call: 917-512-4332 (NY/NJ) | 917-512-4332 (CO) | 866-716-3813 (Toll Free)

New York Office
630 Third Avenue 19th Floor
New York, NY 10017

Toll Free: 866-716-3813
Phone: 917-512-4332
New York Office Map

Great Neck Office
98 Cutter Mill Road, Suite 310N
Great Neck, NY 11021

Toll Free: 866-716-3813
Phone: 917-512-4332
Great Neck Office Map

Hackensack Office
27 Warren Street, Suite 304
Hackensack, NJ 07601

Toll Free: 866-716-3813
Phone: 917-512-4332
Hackensack Office Map

Denver Office
1060 Humboldt Street
Denver, CO 80218

Toll Free: 866-716-3813
Phone: 917-512-4332
Denver Office Map