Auxilium Pharmaceuticals (UNKNOWN:AUXL.DL) 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:NVLN). 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.