According to Bloomberg, biotechnology and pharmaceutical company “Endo International Plc (ENDP) agreed to buy Auxilium Pharmaceuticals Inc. (AUXL) for about $2.6 billion to gain testosterone products.”
After “buying smaller companies for their product lines”, Endo plans to “cut research and development spending by focusing on lower-cost, lower-risk drugs.”
This deal is significant because Auxilium dropped plans to purchase Canadian company QLT Inc. after the Treasury Department made new rules limiting the tax benefits of American companies relocating overseas, known as inversion.
The Endo deal “allows Auxilium to get the tax benefits of having a parent company incorporated abroad, without having to contend with the new Treasury rules. Endo, although run from the U.S., has been incorporated in Ireland since completing an inversion earlier this year.”
Summary by MedicalGroups.com
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