Endo to buy Auxilium, plans big cuts

Endo International Plc, a drugmaker run largely from Malvern, Chester County, but incorporated in Ireland where it can avoid U.S. taxes, says it has convinced directors of sexual-dysfunction therapy-maker Auxilium Pharmaceuticals, based in Chesterbrook, to sell Endo the company for $2.6 billion in cash and debt, including $33.25 (in cash or stock) for each Auxilium share. Statement here.

That's a 55 percent premium to Auxilium's stock market value on Sept. 16, when Endo offered $2.2 billion, a premium Auxilium said wasn't enough.  Endo boss Rajiv De Silva called the fatter deal a win for investors in both companies "as well as for patients, customers and employees."

But while Da Sliva said he's looking forward to "working with the Auxilium team," his company also said it "expects the combined company to achieve annual cost synergies of approximately $175 million," in addition to Auxilium's previous plan to cut expenses $75 million this year. The combined cuts add up to more than half Auxilium's $469 million in operating expenses for 2013. The earlier cuts included firing more than 200 of Auxilium's 639 workers.

The deal ends a previous plan to merge Auxilium with Canadian drugmaker QLT, Inc. Endo includes businesses spun off by the former DuPont Co.-Merck drug development and marketing partnership in 1997.