Endo International PLC announced back in January 29th 2015 the completion of the acquisition of Auxilium Pharmaceuticals, Inc. Endo had already announced their move to acquire Auxilium back in October 9th 2014 in a transaction valued at $2.6 billion. The acquisition process was finally completed on January 27th 2015 after approval from all shareholders alongside receipts of all the necessary regulatory approvals. This new acquisition has expanded Endo’s pharmaceutical businesses across the US .many branded products such as XIAFLEX, TESTOPEL and STENDRA are now owned by Endo. Their portfolio now depicts a wider array of orthopedic and urology products.
What this means for Endo
Endo, a global international pharmaceutical company is popular for developing, manufacturing, marketing and distributing high quality branded pharmaceuticals. What’s more, they are known for providing quality products aimed at improving the life of patients while attaining shareholder value. With the completion of the acquisition of Auxilium Pharmaceuticals INC, Endo is set to experience remarkable growth. Endo is a reputable company that already has a robust portfolio with many renowned male and pain products. Adding Auxilium will only add to the fast growing organic products in the full range. According to Endo’s CEO and President Rajiv De Silva, this acquisition is expected to be immediate accretive for shareholders and also show long-term annual improvement in the coming years. The strategic transaction brings in high quality products to their ever expanding pipeline of pharmaceuticals. The first actions will be to leverage resources and try to optimize TESTOPEL and STENDRA while enhancing the performance of XIAFLEX which are all natural products that compliment Endo’s portfolio of male’s health and pain products.
How the merger worked out
In the acquisition, the merger terms were quite desirable and paying. Shareholders had the opportunity to pick one of the three transaction consideration options. They included;
- Stock Election Consideration - 0.4880 Endo shares per Auxilium share
- Cash Election Consideration - $33.25 in cash per Auxilium share
- Standard election consideration - $16.625 in cash and 0.2440 Endo shares per Auxilium share.
Of the 54,996,186 outstanding shares, about 94.2% enrolled for the stock election consideration while only 0.4% and 0.2% took the second and third options. This election led to an oversubscription of the Stock election consideration. Nonetheless, the proration methods specified in the merger terms and agreement made a viable solution to cover the phenomenon. Following market closure in January, Auxilium stocks have ceased being traded at the NASDAQ global market. Endo is now set for rapid growth and expanded reach as they seek to refine and rebrand new products that were once marketed and distributed by Auxilium.