Jefferies Cuts Price Targets on Auxilium Pharmaceuticals (AUXL) As Xiaflex Sales Remain Weak
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Jefferies is reaffirming its Buy rating on shares of Auxilium Pharmaceuticals (NASDAQ: AUXL) and is lowering its price target from $32 to $24 following Q3 results.
U.S. Xiaflex sales were $1 million bellow the consensus for the third quarter to $10.3 million. Management noted the 4 percent increase in sales quarter over quarter reflects market share gains. During the quarter there was also a decrease in overall Dupuytren’s procedure volume as a results of lower surgery volumes in the summer months.
The company remains optimistic that sales will pick up over the fourth quarter and will allow the company to meet its previous 2011 Xiaflex sales guidance of $45-$50 million.
An analyst at Jefferies comments, "While there may be a stronger impact from the CPT codes in 2012 than we saw with the J code in 2011, we have revised our estimates for a more gradual effect on growth over multiple years in our model and have lowered our Xiaflex sales from $90m to $70m in 2012. Based on the more modest-than-expected ramp in Xiaflex sales since launch, we are also revising our peak sales assumptions from $399m to $220m in 2016."
The firm is tweaking its FY11-FY13 EPS estimates from ($0.74), ($0.47), and $0.88 to ($0.59), ($0.72), and $0.08. Revenue for the three years is estimated to be $265.5 million, $306.9 million, and $350.2 million.
For more ratings news on Auxilium Pharmaceuticals click here and for the rating history of Auxilium Pharmaceuticals click here.
Shares of Auxilium Pharmaceuticals closed at $15.56 yesterday, with a 52 week range of $13.59-$25.10.
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U.S. Xiaflex sales were $1 million bellow the consensus for the third quarter to $10.3 million. Management noted the 4 percent increase in sales quarter over quarter reflects market share gains. During the quarter there was also a decrease in overall Dupuytren’s procedure volume as a results of lower surgery volumes in the summer months.
The company remains optimistic that sales will pick up over the fourth quarter and will allow the company to meet its previous 2011 Xiaflex sales guidance of $45-$50 million.
An analyst at Jefferies comments, "While there may be a stronger impact from the CPT codes in 2012 than we saw with the J code in 2011, we have revised our estimates for a more gradual effect on growth over multiple years in our model and have lowered our Xiaflex sales from $90m to $70m in 2012. Based on the more modest-than-expected ramp in Xiaflex sales since launch, we are also revising our peak sales assumptions from $399m to $220m in 2016."
The firm is tweaking its FY11-FY13 EPS estimates from ($0.74), ($0.47), and $0.88 to ($0.59), ($0.72), and $0.08. Revenue for the three years is estimated to be $265.5 million, $306.9 million, and $350.2 million.
For more ratings news on Auxilium Pharmaceuticals click here and for the rating history of Auxilium Pharmaceuticals click here.
Shares of Auxilium Pharmaceuticals closed at $15.56 yesterday, with a 52 week range of $13.59-$25.10.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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