Auxilium: We Are Moving To The Sidelines, Says UBS

In a research report issued today, UBS analyst Marc Goodman downgraded shares of Auxilium Pharmaceuticals (NASDAQ:AUXL) to Neutral from Buy, but maintained his $31 price target. The report comes after an unsolicited $2.2 billion buyout offer from Endo (NASDAQ:ENDP).

Goodman commented: “At this time, we are downgrading AUXL from a Buy to a Neutral, as we believe the likelihood of a deal with Endo is high and that Endo will have to raise the offer price from its first firm offer of $28.10 for AUXL, but at best at a price not significantly higher than current levels. Even if a deal doesn’t happen with Endo, we still believe that Auxilium is an attractive takeout asset and see the potential for other bidders to come in, but given the current stock price we believe Neutral is the right rating.”

The analyst added, “We expect to hear a response from management that it is looking at strategic alternatives to the QLT deal, given the positive response in the stock price, i.e. investors seem to want the Endo deal to happen.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Marc Goodman has a total average return of 15.5% and a 74.1% success rate. Goodman is ranked #446 out of 3304 analysts.

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