Endo International’s bid to acquire Auxilium Pharmaceuticals last week has been rejected by the latter, according to news agency Reuters. Auxilium is said to have made the statement that the bid “significantly undervalues” the company.
The proposed bid, which would have been valued at $2.2 billion, would have seen Endo gain access to Auxilium brands such as Xiaflex, which is approved to treat Peyronie's disease, Dupuytren's contracture and frozen shoulder syndrome.
However, Reuters reports that Auxilium has not rejected the offer outright, and says it maintains the right to engage in discussions with Endo.
Speaking at the original proposal of the bid, Rajiv De Silva, president and chief executive officer of Endo said: "Endo's proposal would provide Auxilium shareholders a substantial premium and immediate cash value for their investment in Auxilium, as well as the opportunity to participate in the upside potential of a leading global specialty healthcare company. In light of the highly complementary nature of our two companies' commercial portfolios, the growth potential of Auxilium's Xiaflex and the significant synergy opportunities, we believe this compelling strategic combination would result in and create benefits for both Endo and Auxilium shareholders, as well as for patients, customers and employees."