UPDATE 2-Auxilium says Endo offer undervalues company, but open to talks

Mon Sep 22, 2014 11:20am EDT
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* Endo says willing to work with Auxilium on a deal

* Endo's shares down 1 pct; Auxilium's shares down 0.7 pct (Adds Endo's response)

Sept 22 (Reuters) - Auxilium Pharmaceuticals Inc said its board had determined that Endo International Plc's $2.2 billion takeover offer "significantly undervalues" the company, but left the door open for talks on a possible deal.

Endo, which is seeking to expand its men's healthcare products business, made an unsolicited offer for Auxilium last week, prompting the company to adopt a "poison pill" takeover defense.

Auxilium said it maintained the right to engage in discussions with Endo, while Endo said it was willing to work with Auxilium on a deal.

A deal would probably scupper Auxilium's agreement to buy Canadian eye-drug maker QLT Inc. Endo, whose men's healthcare products include testosterone replacement therapy Aveed, has said it is only interested in Auxilium.

Auxilium's shares were down about 0.83 percent $30.89 in early trading, while Endo's stock was down 1.5 percent at $66.64.

If the deal succeeds, Endo would gain access to Auxilium drugs such as Xiaflex, which is approved to treat curvature of the penis - a condition known as Peyronie's disease - and Dupuytren's contracture, a progressive hand disease that affects a person's ability to straighten and properly use their fingers.

Auxilium said in June that it would buy Vancouver-based QLT for $346 million, in an all-stock deal aimed at cutting its tax bill by moving its headquarters to Canada.   Continued...