UPDATE: Mizuho Securities Downgrades Auxilium Pharmaceuticals

Mizuho Securities downgraded Auxilium Pharmaceuticals, Inc. AUXL from Buy to Neutral and lowered its price target from $37 to $33 in a report issued Friday.

On Thursday, Endo Health Solutions Inc ENDP announced it would acquire Auxilium in a $2.6 billion cash and stock transaction.

Analysts Mario Corso and Tim McDonough felt the offer reflected the fair value and lowered the target price to be "in-line with the agreed upon takeout price, because we expect shareholders to approve the deal and do not foresee a competing bid."

The report noted that Auxilium terminated its agreement to acquire QLT Inc QLTI as a result of the acquisition agreement with Endo. The deal will "likely to receive AUXL shareholder approval in our opinion, competing bid not likely given that nearly four weeks have lapsed since ENDP's initial offer."

Shares of Auxilium recently traded at $31.92, down 1.6 percent.

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Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsMario CorsoMizuho SecuritiesTim McDonough
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