Morgan Stanley Equal Weight On Auxilium Pharmaceuticals (AUXL)

Morgan Stanley has an Equal Weight rating and a $26 price target on shares of Auxilium Pharmaceuticals AUXL.

In a note to investors, Morgan Stanley writes, "We are assuming coverage of
Auxilium, a co. focused on urologic and collagen-based diseases, with an EW rating and a $26 PT. Our bias on the long-term success of Xiaflex, an injection drug for Dupuytren's Contracture (a hand condition) and the main value driver for AUXL, is positive as we believe it provides a meaningful value for patients. However, we view Xiaflex as a disruptive technology, and do not have high conviction in our ability to predict if and when the use of the drug will move from early doctor adopters, where use is growing but limited, to the broader physician population. Our concerns are as follows."

Shares of AUXL gained 32 cents yesterday to close at $23.00, a gain of 1.4%.