RBC Sees 10-15% Upside In Auxilium Shares On FDA Okay Of Xiaflex, 20% Downside If Not Approved
Auxilium Pharma (NASDAQ: AUXL) shares are outperforming the broader stock market Wednesday afternoon following a note from RBC Capital's Michael Yee this morning. The stock last traded at $18 even, up 2.8 percent from Tuesday's closing price.
Yee said the three-month extension to the PDUFA by the FDA for Xiaflex to treat Peyronie's disease lifts his confidence for approval. The analyst noted such an FDA delay generally indicates the FDA and a company are in final talks on appropriate labeling.
Yee said he is modeling for Auxilium shares to jump around 10 or 15 percent upon approval. He assumes shares could fall 20 percent if Xiaflex is not approved.
RBC maintains an Outperform rating and $22 price target on shares Auxilium. The target represents potential upside of about 22 percent from where the stock is currently trading.
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