Endo to Acquire Auxilium Pharmaceuticals for $2.6 Billion
Endo International will acquire Auxilium Pharmaceuticals in a move that is expected to bolster Endo’s pipeline of testosterone products, which FDA advisors have recently scrutinized.
The $2.6 billion cash and stock deal, unveiled last week, grants Endo access to several testosterone replacements, including Testim (testosterone gel) and Testopel (testosterone pellets).
The proposed merger comes a few weeks after FDA advisors recommended testosterone-replacement (TRT) products only be used on men with valid medical conditions that lower testosterone, and not age-related decreases in testosterone. The advisors were concerned that TRT products may be linked to a greater risk of heart attack or stroke.
The Ireland-based Endo also gains access to various urology and orthopedic products, such as the erectile dysfunction drug Stendra (avanafil) and Xiaflex (collagenase clostridium histolyticum), which treats a unique hand deformity called Dupuytren’s Contracture.
As a result of the deal, Pennsylvania-based Auxilium will terminate its proposed merger with Canadian ophthalmology drugmaker QLT. Auxilium had planned to move to Canada to get a lower tax rate; a move numerous drugmakers have pursued in similar deals.
The Endo-Auxilium deal, which must still be approved by U.S. regulators, is expected to close by the first half of next year.
Endo did not respond to a request for comment as of press time. — Robert King
Originally appeared in Drug Industry Daily, the pharmaceutical industry’s number one source for regulatory news and information. Click here for more information.