Auxilium Pharmaceuticals, Inc. (AUXL), AbbVie Inc (ABBV), Eli Lilly & Co. (LLY): Is The Risk Worth The Large Potential Reward?

There is an opportunity for Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) to stop or reverse share loss for Testim. Eli Lilly & Co. (NYSE:LLY) recently announce a 30% reduction in its sales force. There are indications that this will present an opportunity for Auxilium to gain share again in the category during 2H13. Organic market share growth opportunities are generally more difficult to capitalize on, which is why many companies take the acquisition route for growth, such as examples that can be found here.

Conclusion

When looking at owning the shares of Auxilium, it’s a judgment call, like all stocks of downside risk and upside. The share loss in Testim is likely priced in for the most part, although there is still some potential for disappointments. On the positive side, Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) may be able to stop share loss and gain additional revenue streams for Xiaflex. Last, the company could deploy cash and acquire assets to market that could push the shares higher.

The article Is The Risk Worth The Large Potential Reward? originally appeared on Fool.com.

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