Auxilium Pharmaceuticals, Inc. (AUXL) Posts Q1 Loss of 39c/Share

Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL) reported Q1 EPS of ($0.39), $0.22 worse than the analyst estimate of ($0.17). Revenue for the quarter came in at $8.5 million versus the consensus estimate of $89.2 million.

Revenue highlights:

• STENDRA U.S. net revenues of $11.6 million (revenues are recognized by the Company at the time product is shipped to wholesalers) – initial product launch traction is positive with STENDRA already gaining a 6.0 percent share of all new PDE5 prescriptions and a 2.3 percent share of total PDE5 prescriptions amongst Auxilium's target physician population, those doctors responsible for 45 percent of all PDE5 prescriptions
• XIAFLEX U.S. net revenues (for PD and DC combined) of $16.6 million, representing a 38% increase from the first quarter of 2013 – initial launch momentum for XIAFLEX for PD is strong with 853 physicians REMS certified, 2,373 patients submitted to the Auxilium Advantage program for payer reimbursement for treatment and an estimated 1,022 product vials shipped to physicians through the end of April
• Edex U.S. net revenues of $5.5 million – with product market share reaching 52 percent
• TESTOPEL U.S. net revenues of $32.0 million – including a product buy-in in March 2014 ahead of a 15 percent product price increase announced on March 1 and effective on April 1, 2014, which the Company estimates could account for approximately $12 to 14 million; TESTOPEL was acquired as part of the Actient transaction on April 26, 2013 and thus the Company had no TESTOPEL revenues in the first quarter of 2013
• Testim U.S. net revenues of $10.9 million – U.S. revenues for the first quarter of 2014 declined 76 percent compared to the same time period in 2013; the Company believes this decrease was due, in part, to:
  • The accelerating decline of prescriptions in the testosterone replacement therapy (TRT) gel market, which could be due to the January 2014 TRT product safety communication from the U.S. Food and Drug Administration, recent medical journal publications suggesting potential health risks associated with TRT products, extensive advertising regarding litigation against companies marketing TRT products and the commencement of such litigation against companies marketing TRT products, including Auxilium
  • Greater than expected destocking of Testim inventory in the wholesale and retail channels
  • Greater than expected decrease in the Company's highest margin, non-contracted prescriptions, resulting in a higher than anticipated gross-to-net discount applying to all first quarter Testim sales
  • Specifically for the first quarter 2014, the requirement to accrue a liability for the higher than anticipated rebates and allowances on all Testim units estimated to be in the wholesale and retail distribution channels
• Other products acquired in the Actient transaction on April 26, 2013 totaled $7.8 million

Auxilium Pharmaceuticals, Inc. sees FY2014 revenue of $380-420 million, versus the consensus of $430.6 million.

For earnings history and earnings-related data on Auxilium Pharmaceuticals, Inc. (AUXL) click here.

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