- Auxilium Pharmaceuticals (AUXL) put in a solid session after the FDA delayed approval of Xiaflex by three months citing revisions the company made to its risk evaluation and mitigation strategy.
- The shares' strength may be partly attributed to RBC's Michael Yee, who said earlier that the three-month extension makes him more confident in the drug's chances for approval.
- Yee suggested that delays of this sort typically mean the FDA and the company are in advanced talks regarding labeling.
- Yee's model calls for upside of 10-15% if Xiaflex is approved and -20% if it isn't.
- See also: Summer Street cautious on Xiaflex
RBC positive on Auxilium amid Xiaflex delay
Aug 28 2013, 16:13 ET