Analyst Sees No Rival Bids For Auspex Pharmaceuticals

Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA) won't attract rivals for its $3.2 billion bid for Auspex Pharmaceuticals Inc (NASDAQ: ASPX), an analyst said Tuesday.

Stifel's Stephen Willey downgraded Auspex to Hold and called its acquisition, at $101 a share, "a great strategic fit" for Israel-based Teva.

Auspex traded recently at $100.32, off $0.04; Teva changed hands at $63.19, up $0.67.

The companies announced the all-cash deal Monday and said the transaction, expected to close mid-year, has support of both company's boards and key Auspex shareholders.

Willey said Teva valued Auspex solely on expected sales of its SD-809 drug, for which it plans a commercial launch as a treatment for Huntington's disease next year.

The drug also has potential as a treatment for tardive dyskenesia, the involuntary body movements which are a frequent side-effect of anti-psychotic drugs. Studies on the drug are also underway as a potential treatment for Tourette's syndrome.

Teva expects the drug could provide peak annual sales of $2 billion, suggesting its acquisition of Auspex is "a bargain," Willey said.