Auxilium 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