By Chelsea Stevenson
Auxilium Pharmaceuticals Inc. (AUXL) posted its first profitable period in the second quarter as the specialty biopharmaceutical company saw double-digit revenue growth.
The company raised its revenue estimate for the year to $310 million to $332 million, from $293 million to $315 million.
The company's two main drugs are Xiaflex, which is currently allowed in the U.S. and Europe to treat some adults suffering from Dupuytren's contracture in a person's fingers that aren't able to fully extend from the palm, and testosterone replacement therapy Testim.
Auxilium plans to file with the U.S. Food and Drug Administration seeking approval for the potential use of Xiaflex in the treatment of certain penile dysfunction by the end of 2012. Analysts at RBC Capital Markets estimate the potential U.S. market for Peyronie's disease stands at more than $100 million. Meanwhile, the company has a deal with GlaxoSmithKline PLC (GSK) to promote Testim.
"For the remainder of 2012 and beyond, we will continue to focus on delivering excellence in commercial execution and we anticipate a positive additional impact from GlaxoSmithKline's efforts on Testim's growth," Chief Executive Adrian Adams said. "We also look forward to filing the sBLA [supplemental biologics license application] for Xiaflex for the treatment of Peyronie's disease by the end of the year as we seek to obtain FDA approval for this indication."
For the period ended June 30, Auxilium posted a profit of $7.7 million, of 16 cents a share, compared with a loss of $5.1 million, of 11 cents a share, in the year-ago period. The latest quarter includes stock-based compensation expense of $3.9 million, compared with a $4 million expense last year.
Revenue rose 19% to $78.2 million, primarily due to increases in U.S. sales where Xiaflex revenue climbed 21% and Testim revenue rose 26%.
Gross margin narrowed to 77% from 78% due to the high margin catch-up amortization that was recognized last year from Xiaflex.
By drug, Auxilium is raising its full-year guidance for global Testim revenue to $245 million to $255 million from $225 million to $235 million but cut its outlook for global Xiaflex revenue to $65 million to $77 million from $68 million to $80 million.
Shares closed Monday at $25.77 and were inactive premarket. The stock is up 44% in the past three months.
Write to Chelsea Stevenson at email@example.com
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(END) Dow Jones Newswires
July 31, 2012 09:43 ET (13:43 GMT)
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