Market Overview

Aegis Capital Initiates Coverage On Auxilium Pharmaceuticals, Favors Acquisition

Related AUXL
Drug ETFs Attractive Buys On Pullback
Auxilium Pharmaceuticals, Inc. Announces XIAFLEX Now Approved For The Concurrent Treatment Of Up To Two Affected Joints In The Same Hand In Dupuytren's Contracture Patients

In a report released Thursday, Aegis Capital analyst Raghuram Selvaraju initiated coverage on Auxilium Pharmaceuticals (NASDAQ: AUXL) with a Buy rating and a $37.00 price target.

Auxilium announced on Thursday it will acquire QLT (NASDAQ: QLT) for 3.1359 shares of Auxilium stock, equivalent to a 25 percent premium based on QLT's stock price on June 25, 2014. The merger is expected to close later in the fourth quarter of 2014.

Analysts at Aegis are bullish on the acquisition of QLT because of synergies, the deal giving Auxilium shareholders projecting to receiving 76 percent of the combined companies on a fully diluted basis and favors the Auxilium drug Xiaflex™ with the synergies given.

Selvaraju adds that Auxilium is acquiring QLT for a great price and the stock offering adds a substantial amount of value to Auxilium shareholders.

Latest Ratings for AUXL

Oct 2014MizuhoDowngradesBuyNeutral
Oct 2014MKM PartnersDowngradesBuyNeutral
Sep 2014RBC CapitalDowngradesOutperformSector Perform

View More Analyst Ratings for AUXL
View the Latest Analyst Ratings

Posted-In: Aegis Capital Raghuram SelvarajuAnalyst Color News Price Target Initiation M&A Analyst Ratings


Related Articles (AUXL + QLT)

View Comments and Join the Discussion!