Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Auxilium Pharmaceuticals
With that in mind, let's take a closer look at Auxilium's business and see what CAPS investors are saying about the stock right now.
Auxilium facts
| Headquarters (founded) | Malvern, Pa. (1999) |
| Market Cap | $1.3 billion |
| Industry | Pharmaceuticals |
| Trailing-12-Month Revenue | $279.6 million |
| Management | CEO Adrian Adams (since 2007) CFO James Fickenscher (since 2005) |
| Return on Equity (average, past 3 years) | (48.9%) |
| Cash/Debt | $163.1 million / $0 |
| Competitors |
Abbott Labs Par Pharmaceutical Cos. Watson Pharmaceuticals |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 31% of the 180 members who have rated Auxilium believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, BlacknGold, succinctly summed up the bear case for our community:
This came up in a screen for stocks with the highest gains in the last 4 weeks. With a fair [book value per share] of $1.83 this company is greatly overvalued -- although that is expected in speculative pharma. It is almost breaking even, but only has $89 million in shareholders' equity as of 1Q12. Should be an easy red-thumb target.
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