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UPDATE: MKM Partners Reiterates On Auxilium Pharmaceuticals, Inc. As Endo Bid Is Likely Too Low


In a report published Wednesday, MKM Partners analyst Jon LeCroy reiterated a Buy rating on Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL), and raised the price target from $26.00 to $32.00.

In the report, MKM Partners noted, “Endo International plc (ENDP, $65.17, not covered) announced its proposal to acquire Auxilium for $28.10 per share (half cash, half stock). The deal is valued at $2.2 billion valuation based on Endo's current stock price and Auxilium's debt ($1.4bn excluding debt), a 31% premium to Auxilium's closing price. We assume that Auxilium is willing to sell itself but that Endo will need to pay more than $30.75, which is where the stock traded in February. We think that a $32 bid (50% premium to the September 16 closing price) could be acceptable, but even that may be too low. We note that the stock traded over $35 per share at one point in 2010, so it is possible that Auxilium would want in excess of that amount.”

Auxilium Pharmaceuticals closed on Tuesday at $21.52.

Latest Ratings for AUXL

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

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