Auxilium Pharmaceuticals Inc. (AUXL) raised its full-year
outlook as it entered an agreement with the U.S. unit of
GlaxoSmithKline PLC (GSK) to co-promote a testosterone replacement
therapy.
Auxilium and GlaxoSmithKline LLC said they will collaborate to
promote Testim 1%, a testosterone gel for treating men with a
deficiency or absence of the hormone.
Auxilium Chief Executive Adrian Adams said low testosterone,
known as hypogonadism, is a prevalent but poorly recognized
condition. Adams said the collaboration with the strength and
breadth of Glaxo's commercialization team will help reach U.S.
physicians who treat the condition.
As a result of the additional expected Testim sales, Auxilium
raised its full-year revenue guidance by $10 million, now seeing
$293 million to $315 million, roughly in line with Street
estimates.
Auxilium now expects a loss of $5 million to $10 million for
2012, compared with its previously expected loss of $5 million to
$15 million.
Under the agreement, Auxilium has given Glaxo, a British drug
firm, the exclusive right to co-promote Testim in the U.S. through
September 2015. Glaxo will be compensated for net sales exceeding a
baseline set by the two companies, and may receive additional tail
payments following the term of the agreement.
The GlaxoSmithKline team expects to begin promoting Testin to
doctors early in the third quarter of this year, while Auxilium
will remain responsible for drug manufacturing, supply and
regulatory activities.
U.S. sales of testosterone therapies have grown to more than
$1.6 billion a year, the companies said, including $1.4 billion in
sales of testosterone gels.
Auxilium's shares closed at $17.63 on Friday. The stock is down
12% so far this year. Glaxo's American depositary shares closed at
$44.18 on Friday and are down 3.2% so far this year. Both were
inactive premarket.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208;
kristin.jones@dowjones.com