By Melodie Warner 
 

Auxilium Pharmaceuticals Inc. (AUXL) and Pfizer Inc. (PFE) will end their European Union collaboration for the Dupuytren's disease treatment Xiapex no later than April 24.

After which, the marketing rights and responsibility for Xiapex's regulatory activities will revert to Auxilium in the EU and certain other European and Eurasian countries.

Biopharmaceutical company Auxilium said it expects to recognize $94 million of deferred revenue and $9 million of deferred costs in the fourth quarter from the concluded collaboration.

As a result, the company raised its full-year revenue estimate to between $388 million and $408 million from its prior forecast of $310 million to $332 million.

Auxilium also said Wednesday its third-quarter loss widened as gross margin fell to 78% from 80%.

The company reported a loss of $10.5 million, or 21 cents a share, compared with a loss of $4.1 million, or 8 cents, a year earlier. The most-recent quarter included stock-based compensation expense of $3.5 million, while the year-earlier quarter included $3.8 million. Revenue jumped 6.4% to $71 million.

Analysts polled by Thomson Reuters had most recently forecast a loss of four cents on revenue of $79 million.

Separately, Auxilium said it submitted a supplemental biologics license application to the U.S. Food and Drug Administration for Xiaflex, a therapy for the potential treatment of Peyronie's disease

It has asked for priority review designation for the submission and the company expects to hear back from the FDA within about 60 days from the filing date.

Shares closed Tuesday at $20.04 and were halted premarket. The stock has risen 32% over the past year.

Write to Melodie Warner at melodie.warner@dowjones.com

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