Zacks Investment Research upgraded shares of Auxilium Pharmaceuticals, Inc. (AUXL) from UNDERPERFORM to NEUTRAL on March 08, 2013, with a target price of $19.00.
Auxilium's fourth quarter results were better-than-expected with the company reporting earnings per share of $1.83, well above the year-ago loss of $0.25 and the Zacks Consensus Estimate of $1.71 per share. The significant improvement resulted from the recognition of previously received and deferred up-front and milestone payments from Pfizer. Testim, which had a weak third quarter, should improve with Glaxo co-promoting the product. We expect investor focus to remain on Testim sales and the regulatory status of Xiaflex for the Peyronie's indication. In our view, Auxilium's chances of gaining approval for the Peyronie's indication are high. If all goes well, Xiaflex could be in the market for the Peyronie's indication by late 2013. We are moving back to a Neutral recommendation on the stock.
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