However, this price is considerably lower than its high in the previous 30 days of $7.25, which came about a week before Endo’s offer to Auxilium on September 16. At its peak in 2006, the firm had 400 staff members in July 2012, the company fired more than two-thirds of its staff after a Danish venture capital firm took control of QLT’s board.īy December 2012, the staff count had dwindled to 39.Īs of press time, the share price of QLT has not taken an immediate hit from the news shares were trading at $4.60 – an increase of 1.55% from the day before. The last few years have been rough for the Vancouver biotech. The unsolicited Endo offer came in September, and as recently as September 22, Auxilium had announced that it was not interested in cancelling its deal with QLT. (TSX:ENL), a healthcare firm based in Dublin, Ireland. QLT chairman Jason Aryeh said the company is going to start reassessing its options immediately.Īuxilium has rejected the deal in favour of a better offer from Endo International plc. QLT will receive a kill fee of US$28.4 million according to the terms of the original merger agreement. The two companies had announced the merger in June, and at the time Auxilium said it would allow the company to move into a considerably lower tax bracket. (TSX:QLT) has taken another huge hit as its US$300 million buy-out from Auxilium Pharmaceuticals (NASDAQ:AUXL) has been abruptly terminated. Endo dropped 3.4 percent to C$76.00 on Thursday on the TSX.Embattled Vancouver biotech QLT Inc. Shares of Auxilium climbed 10.5 percent to US$32.89 in New York, while shares of QLT added 1.6 percent to C$4.60 in Toronto. The transaction is expected to close in the first half of 2015, subject to the approval of Auxilium's stockholders, regulatory approval in the U.S. "We intend to leverage Auxilium's leading presence in men's health, as well as our R&D capabilities and financial resources to accelerate the growth of XIAFLEX® and Auxilium's other products."
"By adding Auxilium's complementary commercial portfolio, we believe this transaction is aligned with our strategy of pursuing accretive, value creating growth opportunities," Endo's CEO Rajiv De Silva said in a separate statement. Food and Drug Administration-approved urological, orthopedic and men's health products. Auxilium also has at least a dozen other U.S. Endo says it plans to expand its men's healthcare products business by gaining access to Auxilium brands such as the Xiaflex drug. Auxilium shareholders can choose to receive a combination of cash and stock, all stock, or all cash, subject to proration, the company said.Īuxilium makes men’s health medicines, including testosterone supplements. The total value of the deal, at $2.6 billion, includes the assumption of debt.
Under the agreed-upon Endo deal, Endo will acquire all Auxilium shares for $33.25 per share in a cash and stock transaction, a premium of 55 percent to Auxilium's closing price on September 16, the day before Endo made its offer public. Endo, however, offered to acquire Auxilium in early September, and said its offer didn’t include the deal for QLT.Įndo itself moved overseas to lower its taxes, shifting its base from Malvern, Pennsylvania to Dublin, Ireland last year when it acquired Canadian drugmaker Paladin Labs. "In light of this development, we will immediately re-engage in our assessment of all potential strategic options."Īuxilium in June agreed to take control of biotechnology firm QLT in a $345 million stock deal that would move its tax address from Chesterbrook, Pennsylvania, to Canada. "We are obviously disappointed that the merger with Auxilium did not complete," said chairman of QLT, Jason Aryeh, in a release Thursday. Shares of Auxilium Pharmaceuticals ( NASDAQ:AUXL) were jumping this morning after the company dropped its planned tax-inversion deal with Canadian ocular-product maker QLT (NASDAQ: QLTI) ( TSE:QLT) in favour of Endo International's (TSE:ENL) plan to buy the company for $2.6 billion in cash and stock.Īuxilium, after reviewing the offer from Endo, decided that the proposal was superior to the merger plan with QLT, and as a result, is paying a US$28.4 million break fee to QLT.
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