Auxilium Pharma Launches Authorized Generic Testim - Analyst Blog

Auxilium Pharmaceuticals Inc. ( AUXL ) announced that it has inked a deal with Prasco, LLC to introduce an authorized generic version of Testim (testosterone gel). Testim is approved for the treatment of patients who have low or no testosterone. Prasco, which possesses product inventory, has started shipping the authorized generic version of Testim.

Testim, which delivered sales of $211.2 million last year, is under significant pressure with the product expected to post revenues of less than $85 million this year. Challenges being faced by Testim include a shrinking testosterone replacement therapy (TRT) gel market, lower Testim market share, downward pressure on TRT gel scripts due to concerns regarding safety, inventory destocking, and higher rebates.

Auxilium Pharma expects prescription volume in the TRT gel market to go down by 25% in 2014 from the 2013 level. Meanwhile, the testosterone gel market will become even more competitive when generic versions of AndroGel 1% enter the market.

Auxilium Pharma revised its guidance for 2014 primarily on the basis of lower expectations for Testim revenues for the year. The company cut its revenue guidance by $70 million to $380 million−$420 million (previous range: $450 million−$490 million).

Auxilium Pharma carries a Zacks Rank #5 (Sell). With Testim facing a bleak future, Auxilium Pharma is now heavily dependent on Xiaflex for growth.

Some better-ranked stocks in the health care sector include Gilead Sciences Inc. ( GILD ), ANI Pharmaceuticals, Inc. ( ANIP ) and Quintiles Transnational Holdings Inc. ( Q ). While Gilead and ANI Pharmaceuticals hold a Zacks Rank #1 (Strong Buy), Quintiles carries a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AUXILIUM PHARMA (AUXL): Free Stock Analysis Report

GILEAD SCIENCES (GILD): Free Stock Analysis Report

QUINTILES TRANS (Q): Free Stock Analysis Report

ANI PHARMACEUT (ANIP): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More