MALVERN, Pa. (AP) – Auxilium Pharmaceuticals Inc. reported a larger first-quarter loss as it conducted studies in hopes of getting its drug Xiaflex approved to treat more conditions.
Auxilium posted a loss of $11.8 million, or 25 cents per share, up from $8.6 million, or 18 cents per share, in the first quarter of 2010. Its revenue rose 8 percent, to $58.4 million from $45.5 million.
Analysts expected a loss of 24 cents per share and $61.1 million in revenue, according to FactSet.
Auxilium started marketing Xiaflex in March 2010. It is approved to treat Dupuytren’s contracture, a condition that makes the tendons of the hand thicken and shorten, causing the fingers to curve inward.
The company is running another late-stage trial to support an approval in Peyronie’s disease. Peyronie’s disease causes abnormal curvature of the penis. The company expects to report initial data from that study in the second quarter of 2012.
The company said its research and development costs rose 86 percent to $15.8 million in the first quarter.
Sales of Xiaflex rose to $12.3 million from $1.3 million, including $1.8 million from recognition of deferred revenue. Revenue from the testosterone gel Testim grew 4 percent to $46.1 million.
During the quarter, Auxilium licensed the Japanese rights to Xiaflex to Asahi Kasei Pharma for $15 million. Auxilium has received that payment, and it is awaiting a $30 million payment from its partner Pfizer Inc., which holds the European rights to Xiaflex. Pfizer will make the payment after the first sale of Xiaflex in the U.K.
Auxilium could get another $30 million in payments after the drug goes on sale in other major European markets.
Based on those payments, Auxilium expects a smaller annual loss and greater revenue. It now forecasts a loss of $31 million to $41 million and $259 million to $281 million in total revenue. The company had projected a loss of $35 million to $45 million on $255 million to $277 million in revenue.
Analysts had projected Auxilium would lose $35.3 million, or 72 cents per share, on $270.5 million in revenue.
Date: May 9, 2011
Source: Associated Press