Auxilium rejects Endo takover bid

Auxilium Pharmaceuticals Inc., said Monday that its board of directors rejected last week's unsolicited takeover offer from Endo International P.L.C., because it undervalued Auxilium.

Endo offered $28.10 per share for Auxilium stock and called its total value $2.2 billion, but the offer was in an unspecified combination of Endo stock and cash.

This takeover attempt involves two Philadelphia-area companies.

Endo was headquartered in Chadds Ford before moving to Malvern. Most of its leaders still operate from Malvern, but the company registered in Dublin, Ireland after another acquisition late in 2013. That move was to take advantage of Ireland's lower corporate taxes.

Auxilium's headquarters is in Chesterbrook, but it is also involved in a foreign acquisition, at least in part intended to reduce its corporate tax rate. Indeed, in its statement Monday, Auxilium said its board recommended to shareholders that they vote in favor of the company's previously announced purchase of the Canadian company QLT Inc.

However, the board gave itself some room to maneuver, or wait for a better offer from Endo.

"Under the terms of the merger agreement with QLT, Auxilium maintains the right to engage in discussions with Endo and other third parties, subject to certain conditions in the merger agreement," Auxilium said in its statement.

In its statement, Endo seemed to recognize the possibility of further discussion.

"We note Auxilium's statement that it maintains the right to engage in discussions with Endo and it is our strong preference to work collaboratively with Auxilium to realize the benefits of this transaction," Endo said. "At this time, we do not intend to make further statements.

Auxilium announced a 30 percent cut in its workforce earlier in September and more jobs would likely be eliminated in an Endo takeover.

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