Auxilium Pharmaceuticals (NASDAQ: AUXL ) , a $910 million biopharmaceutical company, announced today it is expanding a license agreement with BioSpecifics Technologies (NASDAQ: BSTC ) giving Auxilium the right to market Xiaflex for use against cellulite, if the FDA OKs such an indication for the drug. Auxilium paid BioSpecifics a one-time $500,000 fee to exercise the option.
The original license agreement between the two companies, signed in August 2011, allowed Auxilium the exclusive rights to market and develop collagenase clostridium histolyticum (CCH), or Xiaflex, which is used to treat adults with a condition that causes one's fingers to bend toward the palm.
Expanding the license agreement to include treating cellulite gives Auxilium a larger potential market. Cellulite, which is a condition characterized by dimply skin and caused by fat deposits underneath the skin, is harmless. It's more common in women and can be caused by things like poor dieting, hormonal changes, a slow metabolism, or generally lethargic behavior, according to WebMD.
BioSpecifics announced last month that it had achieved promising results in testing Xiaflex for use against cellulite. "We acknowledge the significant potential commercial opportunity that cellulite may represent for Xiaflex, if approved, and we look forward to the initiation of a Phase IIa trial by Auxilium in the second half of next year," said BioSpecifics at the time.