Auxilium Pharmaceuticals (NASDAQ:AUXL) shares were down a bit today on news that it is looking to merge -- in a $354 million, all-stock deal -- with Canada-based QLT (NASDAQ:QLTI). Auxilium, which is well known for its testosterone treatments (like Testim) and erectile dysfunction drugs like Stendra, seems like a somewhat strange fit for QLT, which has a small pipeline focused on a pair of eye conditions.

So, why does Auxilium want QLT?

In the video below, health care analysts Michael Douglass and David Williamson answer.

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David Williamson has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends Valeant Pharmaceuticals. The Motley Fool owns shares of Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.