Auxilium Scores on Pfizer Pact (AUXL, PFE)

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By Douglas A. McIntyre Updated Published

Money_stack_pic_2Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL) is responding well in pre-market trading after the company signed an overseas commercialization agreement with Pfizer, Inc. (NYSE: PFE).  The pact covers Auxilium’s Xiaflex, a treatment for hand and urological disorders related to hardening collagen.

The terms of the deal appear to call for an upfront payment of $75million.  The company is also eligible to receive milestone payments ofup to $410 million depending upon goals and targets reached.

Auxilium is set to receive increasing tiered royalty payments onPfizer’s Xiaflex sales.  This could reach up to 25% since Auxilium willmake the drug.   Pfizer also  expects to file for approval in the U.S.in 2009 and to file for approval in the E.U. in 2010.

As of yesterday’s close, Auxilium’s market cap was $967 million basedupon a closing bell price of $22.89.  Its 52-week trading range is$15.44 to $42.75, and shares are trading up 15% at $26.50 in pre-markettrading.

Jon C. Ogg
December 18, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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