Oppenheimer Reports On Auxilium Partnership With Asahi Kasei Pharma

In a report published by Oppenheimer, Auxilium Pharmaceuticals AUXL announced an outlicensing partnership with Asahi Kasei Pharma to develop and commercialize XIAFLEX in Japan for Dupuytren's contracture and Peyronie's disease. Oppenheimer said that AUXL will receive a $15M up-front payment, $37M in potential payment developmental and regulatory milestones, and $210M in sales based milestones. “We expect Asahi to begin clinical trials in Dupuytren's contracture during 2012, with timing for trials in Peyronie's disease unknown at this point. Importantly, Asahi currently has ~700 sales representatives and is active in similar therapeutic verticals. We are updating our model to reflect this outlicensing arrangement, but our EPS estimates through 2012 are unchanged.” Auxilium Pharmaceuticals closed yesterday at $22.05.