Auxilium profit beats estimates as acquisition boosts sales
(Reuters) - Auxilium Pharmaceuticals Inc (AUXL.O) reported a better-than-expected adjusted quarterly profit, boosted by strong drug sales from a recently acquired company, and narrowed its full-year revenue forecast range.
Auxilium shares rose about 6 percent in premarket trading.
The company said it now expected full-year revenue of $370 million-$401 million compared with $363 million-$405 million estimated earlier.
Auxilium has been trying to diversify its revenue stream as sales of its testosterone gel, Testim, lag amid slowing growth of the testosterone replacement market, competition and reduced coverage of the drug by managed care plans.
The company added nine drugs to its portfolio of two when it acquired Actient Holdings LLC, a privately-held urology company, in April.
Auxilium said last month that it would market Vivus Inc's (VVUS.O) erectile dysfunction drug, Stendra, in the United States.
Auxilium's net revenue jumped 52 percent to $108.1 million in the third quarter ended September 30, partly due to strong sales of its hand disorder treatment, Xiaflex.
Analysts on average had expected $103.7 million, according to Thomson Reuters I/B/E/S.
Sales of Actient products, mainly a testosterone treatment and an erectile dysfunction drug, contributed $38.3 million to Auxilium's revenue.
Total sales of Testim fell 6 percent to $52.3 million in the quarter. Auxilium cut its full-year forecast for total sales of the drug to $200 million-$210 million from $210 million-$225 million.
Sales of Xiaflex rose 12 percent to $17.6 million.
Auxilium's net loss widened to $28.9 million, or 59 cents per share, in the third quarter from $10.5 million, or 21 cents per share, a year earlier.
Excluding items, the company earned 17 cents per share, higher than the average analyst estimate of 15 cents.
Auxilium shares closed at $17.29 on Tuesday on the Nasdaq.
(Reporting by Vrinda Manocha in Bangalore; Editing by Kirti Pandey)