Jefferies Reiterates Buy Rating on Auxilium Pharma (AUXL)

Jefferies and Company is out with a research report this morning, where it reiterates its Buy rating on Auxilium Pharma

; it has a price target of $42.00 on the stock. The Jefferies analysts cited the fact that AUXL recently announced that the US Patent and Trademark Office has issued a new patent for Xiaflex, claiming a 1:1 ratio of collagenase 1 vs. 2 in the Xiaflex formulation with over 97% purity. The analysts are estimating that extending Xiaflex market exclusivity from 2022 to 2028 could add at least $6/share to the valuation. As for valuation, they remarked, “We maintain our 12-month price target of $42, based on 15x 2015 EPS, discounted 20%. This multiple is near the bottom of our mid-cap range. AUXL is subject to clinical, regulatory, and reimbursement risks.”