Shares of specialty biopharmaceutical company Auxilium were up more than 42% in after the company received a takeover bid from Irish drug company Endo Pharmaceuticals worth $US2.2 billion.
The offer values Auxilium at $US28.10 per share and is comprised of an equal mix of cash and Endo stock.
Endo’s offer represents a 31% premium to Auxilium’s closing price on Tuesday, and a 40% premium to the closing price of Auxilium over the last 30 days. In after hours trade on Tuesday Auxilium shares were trading as high as $US30.70.
Following the announcement, Endo shares were also higher, up more than 4%.
The offer also follows an announcement from Auxilium last week that the company would cut 30% of its staff as part of cost-saving measures aimed as saving $US75 million per year.
Auxilium’s portfolio of drugs includes: edex®, an injectable treatment for erectile dysfunction, Osbon® ErecAid®, a device for aiding erectile dysfunction, STENDRA®, an oral erectile dysfunction therapy, TESTOPEL®, a long-acting implantable testosterone replacement therapy, XIAFLEX®, for the treatment of Peyronie’s disease and XIAFLEX for the treatment of Dupuytren’s contracture, among other drugs.