Auxilium Pharmaceuticals, Inc. (AUXL): Huge Potential For First Line Therapy For Frozen Shoulder

Similar therapies

For Dupuytren’s contracture, Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) will compete with the Phase II candidate HTI-501 from Halozyme Therapeutics, Inc. (NASDAQ:HALO). It is also believed that HTI-501 has the potential to treat Cellulite and Peyronie’s disease. Currently, HTI-501 is in Phase I study for Cellulite, a condition which affects more women than men.

In addition to Halozyme Therapeutics, Inc. (NASDAQ:HALO), Xiaflex will compete with AndroGel from AbbVie Inc (NYSE:ABBV) and Axiron from Eli Lily for the treatment of Peyronie’s disease. Both AndroGel and Axiron currently compete with Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL)’s Testim as treatment for adult males who have low or no testosterone. For 2012, Androgel (testosterone gel) and Axiron (testosterone solution) represent 66% and 12.8% of total TRT market respectively.

AndroGel is AbbVie Inc (NYSE:ABBV)’s second highest revenue generator after the blockbuster Humira. In the last couple years, according to the annual report of the company, AndroGel sales increased slightly above 30% year on year, from $649 million in 2010, to $874 million in 2011, to $1.1 billion in 2012. Of all AbbVie Inc (NYSE:ABBV)’s marketed products, AndroGel has shown the highest rate of growth in the last 2 years. However, its growth rate has decreased by 3%, while Humira’s at 28% is an increase of 9% this year. AbbVie does continue to forecast full year double digit growth for AndroGel for 2013.

Conclusion

A company spends millions of dollars developing a drug candidate for one disease. If approved and marketed, it then makes, hopefully, many more millions of dollars from that single disease’s market. Getting that same drug approved for another disease is like a freebie. Looking at it from one angle, it is like developing a drug for the second disease without spending too many millions in R&D. From that perspective, and given that there are so many indications for which Xiaflex seems to be a cure-all, I think Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) has a real windfall in the offing here.

The article Huge Potential For First Line Therapy For Frozen Shoulder originally appeared on Fool.com and is written by Kanak Kanti.

Dr. Kanak Kanti De has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Kanak is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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