[Free Report] Endo Makes Bid For Auxilium; Gilead Fails Pancreatic Cancer Trial
Endo International made an unsolicited proposal yesterday to acquire all the outstanding shares of Auxilium Pharmaceuticals for $28.10 per share in a mixed cash and stock transaction valuing the company at $2.2 billion. Endo intends on funding the deal with existing cash as well as debt financing.
Endo expects the addition of Auxilium to be immediately accretive to adjusted diluted EPS. Synergies may also lead to a $75 million reduction in annual operating expenses. “We believe the compelling strategic combination would result in and create benefits for both Endo and Auxilium shareholders, as well as for patients, customers, and employees,” said Endo CEO Rajiv De Silva.
Auxilium shares have soared 44% to $31.08 as investors anticipate a higher offer.
Gilead announced results from a Phase II study of its lysyl oxidase-like-2 inhibitor (LOXL2), simtuzumab, in combination with gemcitabine for patients with previously untreated advanced pancreatic cancer. The addition of simtuzumab to gemcitabine did not meet the primary endpoint of significant increase in progression free survival (PFS) when compared to gemcitabine plus placebo. Full results will be presented at the European Society for Medical Oncology (ESMO) September 26-30.
In this 236 patient, randomized, double-blind, placebo-controlled trial, patients received gemcitabine plus either 200mg simtuzumab, 700mg simtuzumab, or placebo. Median PFS was 3.5 months, 3.7 months, and 3.7 months, respectively. There was no statistical difference between placebo and simtuzumab arms.
Gilead intends on continuing development of simtuzumab in colorectal cancer, myelofibrosis, and serious fibrotic lung and liver diseases.
Author is Long GILD