UPDATE: Stifel Nicolaus Downgrades Auxilium Pharmaceuticals to Hold on Xiaflex Lag
Stifel Nicolaus reduced its rating on Auxilium Pharmaceuticals (NASDAQ: AUXL) from Buy to Hold and removed its $27 price target.
Stifel Nicolaus noted, "Auxilium posted strong 2Q12 revenues of $78.2mn (Consensus $74mn), on solid Testim global sales of $64mn (Consensus $57.5mn). But Xiaflex lagged with global sales of $14.4mn (Consensus $16.8mn). … Xiaflex DC continues to lag despite facilitated reimbursement, positive recurrence data, and continued promotion. Though management is introducing primary care referral strategies (beginning 2H12) targeting 14,000 PCPs/endocrinologists via Testim sales force, Xiaflex growth is anemic. Investment is shifting to targeted, local promotion to generate new patient traction, but we are discouraged by Xiaflex's inability to buck seasonal trends this early in life."
Auxilium Pharmaceuticals closed at $26.94 on Tuesday.
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