Auxilium Pharmaceuticals Inc. reported a smaller second-quarter loss Monday, but the company's shares fell after it lowered its expectations for sales of its drug Xiaflex.
Auxilium said it lost $5.1 million, or 11 cents per share, in the most recent quarter. A year ago the company lost $13.5 million, or 28 cents per share. Its revenue grew 31 percent, to $65.9 million from $50.5 million.
Analysts expected a larger loss of 20 cents per share and $64.5 million in revenue, according to FactSet.
The company said Xiaflex revenue rose to $15.4 million, up from $3.1 million a year ago. Xiaflex is approved to treat Dupuytren's contracture, a condition that makes the tendons of the hand thicken and shorten, causing the fingers to curve inward. Auxilium started marketing the drug in March 2010. Revenue from Xiaflex totaled $12.3 million in the first quarter.
The company said revenue from its testosterone gel Testim rose 7 percent to $50.5 million.
Auxilium said it now expects to lose between $40 million to $45 million in 2011. The company now forecasts $45 million to $50 million in U.S. Xiaflex revenue, down from its previous estimate of $50 million to $60 million.
The company previously said it expected to lose between $31 million to $41 million in 2011. It is still projecting $200 million to $210 million in Testim revenue, and $9 million to $11 million in deferred and overseas revenue from Xiaflex.
Analysts were projecting a loss of $35.3 million, or 77 cents per share, on $264.3 million in revenue.
Shares of Auxilium Pharmaceuticals fell 77 cents, or 4.1 percent, to $17.97 in afternoon trading.