Company

Bank

Analyst

Coverage

Opinion

Wk chg

8/3 cls

Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL)

Leerink

Joseph Schwartz

Downgrade

Market perform (from outperform)

-9%

$24.18

Schwartz raised his target to $27 from $25 after Auxilium reported its first profitable quarter but downgraded on the lack of "obvious sources of upside" in the near term. He noted the stock has appreciated about 40% since his upgrade in June. Auxilium reported 2Q12 EPS of $0.16 and 2Q12 revenues of $78.2M, beating the Street's EPS and revenue estimates (see "EPS Watch," A19). Auxilium also reported 2Q12 total revenues for testosterone replacement therapy Testim of $63.8M, beating his and the consensus estimate of $58M.

Aveo Pharmaceuticals Inc. (NASDAQ:AVEO)

Jefferies

Thomas Wei

Downgrade

Hold (from buy)

-29%

$9.85

Wei also lowered his target to $11 from $30 on increased regulatory risk for tivozanib after the company said FDA expressed concerns about the "unfavorable" overall survival (OS) trend in the Phase III TIVO-1 trial comparing tivozanib to Nexavar sorafenib in renal cell carcinoma (RCC). Aveo hopes to submit an NDA this quarter, but said it is conducting additional OS analyses to address the agency's concerns that could delay the submission into next quarter. Tivozanib is an inhibitor of VEGF receptors 1, 2 and 3; it is partnered with Astellas Pharma Inc. (Tokyo:4503). Nexavar is an inhibitor of RAF1 and multiple receptor tyrosine kinases marketed by Onyx Pharmaceuticals Inc. (NASDAQ:ONXX) and Bayer AG (Xetra:BAYN).