MALVERN, Pa. (AP) – Drug developer Auxilium Pharmaceuticals Inc. improved its outlook for 2012 because of plans to start co-promoting its testosterone gel Testim in the U.S. this summer with British pharmaceutical giant GlaxoSmithKline plc.
Glaxo will get the right to jointly sell Testim with Auxilium in the United States through 2015, the companies said Monday. Auxilium CEO Adrian Adams said the deal was an effort to get Testim to more physicians.
Auxilium, based in Malvern, Pa., will remain responsible for making and supplying the gel, which is a testosterone replacement therapy for adult males. Testim brought in $58.7 million in revenue during Auxilium’s first quarter, nearly all of which came from U.S. sales. That made up 80 percent of Auxilium’s revenue for the quarter.
Glaxo said it expect to start selling the gel early in the third quarter. It said Testim will complement the cardiovascular, metabolic and urology products its representatives currently sell.
The British drugmaker’s payment will depend on how much the gel’s sales exceed a revenue forecast established by the companies. Auxilium also will make other payments to Glaxo that were not specified.
Auxilium now expects its 2012 net loss to range between $5 million and $10 million compared to a previous forecast calling for a loss of $5 million to $15 million. It raised its revenue guidance to a range of $293 million to $315 million from $283 million to $305 million.
Analysts surveyed by FactSet expect, on average, full year revenue of $299.1 million.
Date: May 21, 2012
Source: Associated Press