Out of the Gate: Auxilium rises on trial results

Shares of Auxilium Pharmaceuticals Inc. advanced Tuesday after trial results showed its drug candidate Xiaflex met its goals in a pair of late-stage trials.

Xiaflex is designed to treat Dupuytren's contracture, a condition in which tendons in the hand thicken, which causes the fingers to curve inward. Auxilium said the drug reached its goal of reducing joint curvature to within five degrees of normal.

In the larger of the two late-stage trials, called CORD I, 64 percent of patients reached that goal 30 days after their final injection of the drug. In the smaller CORD II trial, 44.4 percent of patients reached the target.

Banc of America analyst William Ho said he expected between 70 percent and 85 percent of patients to meet the target in CORD I, but he said the results are still "excellent." He thinks doctors will use more than the three injections given to trial subjects, and said Xiaflex has a better ratio of risks to rewards than surgery.

In morning trading, the stock picked up $1.36, or 4.3 percent, to $32.89. Shares have gained 37.1 percent since March 20, and have traded between $14.37 and $36.14 over the last year.

Ho and nine other analysts rate the stock "Buy," while one gives a "Hold" rating and two assign a "Sell" rating.