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Auxilium Pharma 4Q loss widens, expenses rise

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Auxilium Pharmaceuticals Inc. said Thursday its fourth-quarter loss widened, even though revenue grew 29 percent, as the biopharmaceutical company incurred growing expenses tied to its Dupuytren's contracture treatment Xiaflex.

The Malvern, Pa., company lost $16.4 million, or 34 cents per share, in the three months that ended Dec. 31. That compares with a loss of $11.9 million, or 25 cents per share, in the final quarter of 2009.

Revenue grew to $61.8 million from $48 million.

Analysts surveyed by FactSet expected, on average, a loss of 30 cents per share on $60 million in revenue.

Auxilium said revenue from Testim, which treats hypogonadism, a condition that impairs the function of the ovaries or testes, grew 13 percent in the quarter to $53.4 million.

Revenue from Xiaflex, which treats a condition in which the tendons of the hand constrict and cause the fingers to curve inward, was $8.4 million. Auxilium started selling Xiaflex in March.

Auxilium's research and development expenses climbed 23 percent to $14 million mainly due to late-stage trial expenses and the cost of developing a larger scale Xiaflex production process. Auxilium has started a late-stage clinical trial of Xiaflex as a possible treatment of Peyronie's disease, which causes abnormal curvature of the penis when erect.

Selling, general and administrative expenses also climbed 21 percent in the quarter to $47 million mainly from the addition of a sales force and promotional and training activity tied to the U.S. launch of Xiaflex.

For the full year, Auxilium lost $51.2 million, or $1.08, on $211.4 million in revenue.

The company forecast 2011 revenue in a range of $255 million to $277 million and a net loss of $35 million to $45 million. Analysts expect revenue of $268.1 million, according to FactSet.

Shares of Auxilium fell 2 percent, or 48 cents, to $22.93 in morning trading.

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