Shares of Auxilium Pharmaceuticals Inc. rose Wednesday after releasing positive late-stage trial data on a drug to treat a hand condition and after a Piper Jaffray analyst raised his price target.
Auxilium shares gained $2.10, or 6.4 percent, to $34.77.
On Tuesday, the company said two late-stage studies on Xiaflex, which is used to treat Dupuytren's contracture, a diabetes-related condition in which fingers and the palm of the hand thicken and shorten, causing fingers to curve inward, met their goals.
Auxilium plans to submit an application to the Food and Drug Administration for approval in early 2009.
Piper Jaffray analyst Thomas Wei maintained his "Buy" rating and raised his price target $2 to $42, noting that the efficacy and safety data are likely to lead to approval.
Jefferies & Co. analyst Salveen Kochnover, who has a "Buy" rating and $40 target, said Xiaflex will become the standard of care in Dupuytren's contracture. He added he expects Auxilium to find a partner to market Xiaflex outside the U.S. in the second half of the year.
While Xiaflex could bring in $500 million in peak sales, Deutsche Bank analyst David Steinberg said that Auxilium's share price already accounts for positive developments. He has a "Hold" rating and $31 price target.
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