Mon, Mar. 16, 8:12 AM
- In response to Endo's (NASDAQ:ENDP) cash-and-stock bid of $175 for Salix Pharmaceuticals (NASDAQ:SLXP), Valeant Pharmaceuticals (NYSE:VRX) ups it all-cash bid to $173, representing an enterprise value of $15.8B. Valeant expects the transaction to close on April 1, contingent on the satisfaction of the minimum tender condition.
- As a result of the sweetened offer, the termination fee increases $100M to $456M.
- Previously: Endo makes a move for Salix Pharma (March 11)
Mon, Mar. 16, 1:47 AM
- Endo International (NASDAQ:ENDP), which is in a bidding war with Valeant Pharmaceuticals (NYSE:VRX) for Salix Pharmaceuticals (NASDAQ:SLXP), believes it could close a takeover within as little as five weeks of a negotiated deal, Reuters reports.
- The timing is possible because under Irish law, there is only a minimum of 17 days required between mailing proxy materials and holding a shareholder meeting. The $11.2B proposal is also not subject to financing conditions.
- Previously: Endo makes a move for Salix Pharma (Mar. 11 2015)
- Previously: Endo would have to eat breakup fee to get Salix (Mar. 11 2015)
- Previously: Valeant bond sale continues despite Endo bid (Mar. 12 2015)
Fri, Mar. 13, 4:10 PM
- Unsurprisingly, considering the competing bid from Endo (NASDAQ:ENDP), Valeant Pharmaceuticals (NYSE:VRX) increases its debt offering from $9.6B to $10.1B that it will use to principally fund its acquisition of Salix Pharmaceuticals (NASDAQ:SLXP). The tranches are as follows (values are aggregate principal amounts and all are senior unsecured notes):
- $2.0B 5.375% notes due 2020; $3.25B 5.875% notes due 2023; €1.5B 4.50% notes due 2023 and $3.25B 6.125% notes due 2025.
- The company continues to expect the transaction to close by April 1.
Thu, Mar. 12, 3:21 AM
- Valeant (NYSE:VRX), which is currently marketing a $9.6B high-yield bond to finance its planned acquisition of Salix Pharmaceuticals (NASDAQ:SLXP), is not pulling the deal despite reports that Endo International (NASDAQ:ENDP) is making a rival bid.
- A road show for the deal - which would be the second largest junk bond on record - started on Tuesday.
- Endo's bid values Salix at $175/share ($11.2B) in cash and stock, while Valeant's $10.1B offer consists of $158 per share in cash.
- Previously: Endo launches $175/share bid for Salix (Mar. 11 2015)
- Previously: Valeant initiates debt offering (Mar. 09 2015)
- VRX +2% AH
Wed, Mar. 11, 2:45 PM
- Endo (NASDAQ:ENDP) has submitted a proposal to Salix's (NASDAQ:SLXP) board to buy Salix for $175/share ($11.2B) in cash and stock, based on yesterday's closing prices.
- In an open letter (.pdf) to Salix's board, Endo states it's offering $45 in cash and 1.46 Endo shares for each Salix share. It predicts a deal would be accretive to 2017 EPS by 15%-20% relative to Endo's current plan.
- The offer price represents an 11% premium to Valeant's (VRX -2.7%) $158/share all-cash February deal to acquire Salix. Endo would have to pay a $5.50/share breakup fee to make the deal happen.
- Endo and Salix both remain halted. Before the halts, Endo was down 1.1% to $88.02, and Salix up 6.5% to $167.82.
- Prior Endo/Salix coverage: I, II
Wed, Mar. 11, 1:08 PM
- If Endo International (ENDP +0.5%) is ultimately successful in buying Salix Pharmaceuticals (SLXP +6.2%) for $170 - 175 per share, it would have to pay the breakup fee of $356M owed to Valeant (VRX -5.8%) which would add ~$5.50 per share to the deal.
- Endo made its offer in a private letter sent to Salix's BOD today.
- Update: The price being bantered about on social media is $165/share so, apparently, the breakup fee is included in the previous range of $170 - 175. Also, the offer is allegedly 25% cash and 75% stock.
Wed, Mar. 11, 12:51 PM
- According to a tweet from CNBC Now, Endo International (ENDP +4.1%) makes a bid for Salix Pharmaceuticals (SLXP +7.5%) despite the progress on funding made by acquirer Valeant Pharmaceuticals (VRX -3.9%).
- Valeant announced its takeover on February 22 for $158 per share.
- Previously: Valeant initiates debt offering (March 9)
- Previously: Report: Valeant to buy Salix for $10.1B (Feb. 22)
- Update: Endo's offer is supposedly $170 - 175 per share.
Mon, Mar. 9, 5:37 PM| Comment!
Mon, Mar. 2, 4:43 PM
- Salix Pharmaceuticals (NASDAQ:SLXP) Q4 results ($M): Net Product Revenues: 13.5 (-94.3%); Total Costs and Expenses: 436.9 (+171.4%); Net Loss: (287.6) (-819.0%); Loss Per Share: (4.51) (-877.6%); Quick Assets: 499.3 (-56.9%).
- Management believes Q4 product revenues would have been ~$360M on a prescription demand basis.
- As of December 31, wholesaler inventory levels were ~six months for Xifaxan and Apriso, ~five months for Glumetza and ~four months for Uceris.
Mon, Mar. 2, 4:07 PM
Mon, Mar. 2, 1:50 PM| Comment!
Sun, Mar. 1, 5:35 PM
Sun, Feb. 22, 4:25 PM
- Transaction represents total EV of $14.5B.
- Expected to achieve run-rate cost synergies of more than $500M within six months.
- Conference call on Monday at 8:00 AM.
- Source: Press Release
- Previously: Report: Valeant to buy Salix for $10.1B (Feb. 22)
- Related: Valeant To Acquire Salix Pharmaceuticals: Is It A Big Mistake? (Feb. 22)
Sun, Feb. 22, 6:53 AM
- Valeant Pharmaceuticals (NYSE:VRX) has agreed to buy Salix Pharmaceuticals (NASDAQ:SLXP) for about $10.1B, or $158 per share in cash, Bloomberg reports.
- Two other drugmakers were rumored to be on the hunt for Salix prior to the newly reported deal, including Endo International (NASDAQ:ENDP) and Shire (NASDAQ:SHPG).
- On Friday, Salix shares rose $7.11 to $157.85, almost completely eliminating any premium in the purchase price.
- Separately, Valeant received approval to buy the assets of bankrupt Dendreon (OTCPK:DNDNQ) for $495M. Dendreon is best known for its prostate cancer vaccine, Provenge.
Mon, Feb. 16, 5:50 PM
- A person close to the matter says Endo International (NASDAQ:ENDP) is and has been interested in acquiring Salix Pharmaceuticals (NASDAQ:SLXP). It has apparently sent Salix several letters stating its interest in a transaction, but Salix has yet to respond.
- Valeant Pharmaceuticals (NYSE:VRX) and Shire (NASDAQ:SHPG) are also rumored to be in hunt for the maker of products that treat gastrointestinal disorders.
- Previously: Valeant close to a bid for Salix (Feb. 12)
- Previously: Shire now on the hunt for Salix (Feb. 13)
Fri, Feb. 13, 1:58 AM
- Not only is Valeant Pharmaceuticals (NYSE:VRX) reportedly prepping a bid for Salix Pharmaceuticals (NASDAQ:SLXP), but Shire (NASDAQ:SHPG) is now rumored to be preparing an offer.
- Shire has taken initial steps towards a bid and is evaluating how to secure financing, sources told Reuters.
- Yesterday, Valeant Pharmaceuticals was reported to be arranging financing for a takeout of Salix at a likely price of more than $150 per share. Including net debt, Salix is valued at almost $11B.
- Previously: Valeant close to a bid for Salix (Feb. 12 2015)
- SLXP +1.2% premarket
SLXP vs. ETF Alternatives
Salix Pharmaceuticals Ltd is a specialty pharmaceutical company. The Company is engaged in acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of gastrointestinal disorders.
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