Auxilium stated today it will merge with Canadian biotechnology company QLT. Under the agreement, QLT will now be known as “New Auxilium.” The new leadership team will include two current QLT directors, although the company stated that it “does not expect any material changes to its current US operations or employment as a result of this transaction.” QLT is based out of Vancouver, and as such the newly combined company will take advantage of Canada’s lower corporate tax rate, in what the New York Times called “one of the smallest inversions in recent years.” Auxilium’s new tax rate is believed to be in the mid-20% range, according to the NYT.
Auxilium merges with Canadian biotech in tax-inversion effort
Pennsylvania drugmaker Auxilium will merge with Vancouver-based biotech QLT to lower its corporate tax rate.
