UPDATE: Jefferies Reiterates On Auxilium Pharmaceuticals, Inc. As Restructuring Realigns Costs With Commercial Opportunities

In a report published Wednesday, Jefferies analyst Thomas Wei reiterated a Buy rating on Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL), and raised the price target from $32.00 to $34.00.

In the report, Jefferies noted, “AUXL announced today that they would be reducing headcount by 30% and saving roughly $75m annually. Although the company will incur roughly $20m in costs associated with this restructuring, we see it as a net positive for the company given the high SG&A spend relative to peers and dramatic changes in overall Testim market opportunity.”

Auxilium Pharmaceuticals closed on Tuesday at $20.38.