Auxilium to merge with QLT
Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL) will merge with ophthalmic play QLT Inc. (TSX:QLT; NASDAQ:QLTI) in a stock deal. The combined company will be incorporated in Canada, led by Auxilium's management and will be named New Auxilium. Auxilium shareholders will own about 76% of the combined company, and QLT shareholders will own the balance. Auxilium said it expects the combined company would have a tax rate in the mid-20% range, compared to Auxilium's current rate in the high 30% range. At March 31, QLT had $139.9 million in cash.
Auxilium has 12 approved products, including Xiaflex collagenase clostridium histolyticum for Peyronie's disease and Dupuytren's contracture and Stendra avanafil for erectile dysfunction. QLT's sole product, QLT091001, is in Phase Ib testing for Leber's congenital amaurosis (LCA) and retinitis pigmentosa (RP) and in Phase IIa testing to treat impaired dark adaptation. The companies said they intend to find a partner for the synthetic form of 11-cis-retinal. ...