Auxilium Pharmaceuticals, Inc.
) reported fourth-quarter 2012 earnings per share of $1.83, well
above the year-ago loss of 25 cents and the Zacks Consensus
Estimate of $1.71 per share. The significant improvement resulted
from the recognition of previously received and deferred up-front
and milestone payments from
). The companies have mutually decided to terminate their
collaboration from Apr 24, 2013.
Revenues, which increased 135.3% to $172.5 million, were well
above the Zacks Consensus Estimate of $158 million. We note that
fourth-quarter 2012 net revenues included $93.6 million of
deferred revenues under the Pfizer agreement.
Full-year earnings came in at $1.74 per share, compared with
the year-ago loss of 69 cents and the Zacks Consensus Estimate of
$1.71 per share. Full-year 2012 net revenues increased to $395.3
million from $264.3 million in 2011. The Zacks Consensus Estimate
was $381 million.
Quarter in Detail
Lead product, Testim, posted sales of $59.7 million in the
fourth quarter of 2012, up 4% year-over-year. Testim revenues in
the U.S. increased 3% to $58.4 million. Revenues may have
benefited by about $4-$5 million due to buy-ins ahead of a price
increase in early January and holiday schedules. There could be
some inventory destocking in the first quarter of 2013.
Testim is facing additional competition in the testosterone
replacement therapy (TRT) gel market.
Meanwhile, Xiaflex US revenues increased 30% to $17.5 million.
Auxilium Pharma is working on creating and increasing awareness
among physicians and patients about Xiaflex. The company
continues to present data on the clinical profile of Xiaflex.
Auxilium Pharma is working on expanding Xiaflex' label. The
company is currently seeking FDA approval for Peyronie's disease
- a response should be out by Sep 6, 2013.
Research and development expenses for the reported quarter
declined 29.4% to $13.2 million due to lower spending on
activities related to the development of a larger-scale Xiaflex
production process. Selling, general and administrative expenses
declined 18.8% to $40.7 million mainly due to lower spending on
Auxilium Pharma expects 2013 revenues in the range of
$325-$355 million. Testim revenues are expected in the range of
While Xiaflex sales in the US are expected to be $65-$75
million, ex-US and deferred revenues for Xiaflex are slated to be
$10 to $15 million.
Auxilium Pharma also provided operating expenses guidance. The
company expects R&D spend in the range of $45-$55 million.
Meanwhile, SG&A spend is expected in the range of $185-$195
million. Auxilium Pharma expects 2013 net income of $18-$23
We expect investor focus to remain on Testim sales and the
regulatory status of Xiaflex for the Peyronie's indication. In
our view, Auxilium Pharma's chances of gaining approval for the
Peyronie's indication are high. If all goes well, Xiaflex could
be in the market for the Peyronie's indication by late 2013. FDA
approval would make Xiaflex the first biologic therapy to be
approved for Peyronie's.
Auxilium Pharma currently carries a Zacks Rank #3 (Hold).
Furiex Pharmaceuticals, Inc.
) look more attractive with a Zacks Rank #2 (Buy).
AUXILIUM PHARMA (AUXL): Free Stock Analysis
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