Auxilium Pharmaceuticals (AUXL) and Canadian biotech QLT Inc. enter into a definitive agreement to merge. Under the terms of the agreement, QLT will remain incorporated in British Columbia and will be renamed "New Auxilium." Current AUXL shareholders will be receive 3.1359 QLT shares for each AUXL share. AUXL shareholders will own ~76% of the combined entity and QLT shareholders will own ~24%.
Auxilium's current management team will lead the new company. Shares will trade on NASDAQ under "AUXL" and QLT will be delisted from the Toronto Stock Exchange.
AUXL shares are up 17% premarket on robust volume.