Endo International’s acquisition of Auxilium Pharmaceuticals improves global specialty healthcare for customers.

Endo International plc announced that it has announced a proposal to acquire all of the outstanding shares of Auxilium Pharmaceuticals, Inc. for a per share consideration of $28.10 in a cash and stock transaction worth $2.2 billion. Under the terms of the proposal, there will be an approximately equal payment of cash and Endo stock. The transaction will be funded with existing cash on hand and debt financing.

Rajiv De Silva, president and chief executive officer of Endo has officially stated in an interview: “Endo’s proposal would provide Auxilium shareholders a substantial premium and immediate cash value for their investment in Auxilium, as well as the opportunity to participate in the upside potential of a leading global specialty healthcare company.” He added “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 acquisition is based on Endo’s strategy to “pursue accretive, value creating organic growth opportunities,” continued Mr. De Silva. “We expect that Endo’s leading presence in men’s health, combined with our R&D capabilities and considerable financial resources will accelerate the growth of Xiaflex® and Auxilium’s other products, enhancing the value of the combined company’s portfolio. Endo stands ready to engage immediately with Auxilium, complete our confirmatory diligence, negotiate a definitive agreement and complete this exciting transaction.”

Furthermore, there are overwhelming benefits of this Endo and Auxilium acquisition. First is the ability of Endo to maximize the value of Auxilium’s Commercial Products. Auxilium’s currently has 12 FDA approved products in urology, orthopedic and other areas. Endo expects to enhance the performance of Auxilium’s Xiaflex®, to efficiently use Xiaflex in new indications and to optimize the broader portfolio of the company’s products. The combination of Endo and Auxilium will be a well-positioned company that drives organic growth and a company that could capitalize on future M&A ventures.

Because of the acquisition, shareholders of the combined company are expected to take advantage from its significant synergy opportunities with the nature of the companies’ product portfolios and geographic locations. This is the $75 million reduction in annual operating expenses announced by Auxilium on September 9, 2014. This is Axilium’s agenda in their corporate restructuring initiative.

Finally, expect a better and stronger financial profile Endo would continue to have a strong financial profile as evidenced by a solid balance sheet, enhanced cash flow and improved financial flexibility. Endo expects the transaction to be immediately accretive post close and meaningfully considered in the many years to come.

This acquisition proposal is subject to the completion of its company reviews and the mutually acceptable agreements that is under customary closing conditions. Citi is serving as financial advisor to Endo, and Sullivan & Cromwell LLP is serving as its legal advisor

A.L. Mijares

About Endo:

Endo Health Solutions Inc. is an American pharmaceutical company. Endo Laboratories L.L.C.’s generic products along with 12 important brand products, includes Percocet, Percodan, and Opana. Endo is now called “Endo Pharmaceuticals Inc. On 23 May 2012, Endo’s shareholders approved a resolution to change the company’s name to “Endo Health Solutions Inc.”

Endo is a specialty pharmaceutical company that is an expert in the field of research, development, sale and marketing of prescription pharmaceuticals that are mostly used to treat and manage pain. Endo stock price evolution:

http://www.bloomberg.com/quote/ENDP:US

About Rajiv Da Silva:

Rajiv De Silva is President, Chief Executive Officer and a Director of Endo. Mr. De Silva served as the President of Valeant Pharmaceuticals International, Inc. from October 2010 to January 2013 and served as its Chief Operating Officer, Specialty Pharmaceuticals from January 2009 until January 2013 before he joined Endo. Mr. De Silva is currently a Member of the Board of Trustees at Kent Place School in Summit, NJ.  He has a Bachelor of Science in Engineering, Honors from Princeton University, and a Master of Science from Stanford University and a Master of Business Administration with Distinction from the Wharton School at the University of Pennsylvania.

About Axilium:

Auxilium is a biopharmaceutical company focused on developing and marketing products to a variety of specialist audiences. Auxilium is Latin for “assistance” and being called as such, this term is a fitting description for the company’s biopharmaceutical development and commercialization strategies.  Auxilium has a goal of addressing some of the unmet needs of consumers when it comes to pharmaceutical products. The company uses forward thinking and novel solutions that promote better health and living and is dedicated to providing innovative solutions for underserved and to improve overall quality of life. Axilium’s stock market evolution:

http://finance.yahoo.com/q?s=AUXL