Auxilium Pharmaceuticals, Inc., (AUXL), a specialty biopharmaceutical company, Monday reported a wider loss for the first quarter, reflecting a decrease in revenue.
The company also said it completed the acquisition of Actient Holdings LLC, a private urology specialty therapeutics company, for $585 million in cash, contingent consideration and warrants.
Auxilium recorded a first quarter GAAP net loss of $8.2 million or $0.17 per share, compared to a net loss of $1.7 million or $0.04 per share in the year-ago quarter. The company reported a non-GAAP net loss for the quarter of $2.3 million or $0.05 per share.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude one-time items.
The company generated total revenues of $66.2 million, a 10 percent decrease from $73.6 million recorded during the comparable quarter. The Street estimated revenues of $81.23 million for the quarter.
In a separate statement, the company announced the completion of its acquisition of Actient Holdings and that it expects the transaction to be immediately accretive on a non-GAAP basis to its adjusted net income.
Auxilium expects the acquisition to enhance existing commercial efforts through combined sales force. The combined company will offer 11 products in attractive specialty markets and will have a more diverse revenue stream.
Auxilium is using cash on hand and the proceeds from a new secured loan of $225 million from Morgan Stanley Senior Funding, Inc. to finance the acquisition.
Auxilium will pay Actient unit holders $585 million in upfront cash, a warrant for 1.25 million shares of Auxilium shares with an exercise price of $17.80 per share and up to $50 million of contingent consideration based upon the achievement of future revenue targets.
Jefferies LLC acted as sole financial advisor to Actient in the transaction.
Auxilium increased its revenue guidance for the full year to $360 million - $415 million from $325 million - $355 million. Analysts expect the company to report revenues of $334.59 million.
For comments and feedback: editorial@rttnews.com