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6/7 cls

Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL)


Joseph Schwartz


Outperform (from market perform)



Schwartz also raised his target to $21 from $16 on the belief that the Street "underestimates the magnitude of potential EPS accretion" from Auxilium's acquisition of urology company Actient Pharmaceuticals LLC, which Auxilium disclosed in its 1Q13 earnings. Schwartz said Actient is a "very profitable cash-generating business," and with about 100 Actient sales representatives already focused on urology surgeons treating Peyronie's disease, he is optimistic for a successful launch of Auxilium's Xiaflex/Xiapex collagenase clostridium histolyticum. The injectable form of collagenase to treat Peyronie's has a Sept. 6 PDUFA date. The product is already marketed in the U.S. and the EU to treat Dupuytren's contracture in adults with a palpable cord, which affects joints in the hand.

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

Deutsche Bank

Robyn Karnauskas


Buy (from hold)



Karnauskas maintained her $75 target, but said the value of cancer drug BMN-673 and achondroplasia compound BMN-111 are not reflected in BioMarin's share price. BMN-673, a poly(ADP-ribose) polymerase (PARP) inhibitor, is in Phase I testing to treat advanced hematologic malignancies and advanced or recurrent solid tumors. BMN-111, an analog of C-type natriuretic peptide (CNP), also is in Phase I. Karnauskas anticipates data for BMN-111 in mid-2014.

Clovis Oncology Inc. (NASDAQ:CLVS)

Piper Jaffray

Charles Duncan


Overweight (from neutral)



Duncan also raised his target to $100 from $36 after Clovis presented preliminary data at the American Society of Clinical Oncology meeting showing that CO-1686 produced four partial responses and led to tumor shrinkage of 20% or more in two of six non-small cell lung cancer (NSCLC) patients in the Phase I portion of a Phase I/II trial. Duncan updated his launch projections for CO-1686 for second-line NSCLC to 2015 from 2017 in the U.S. and to 2016 from 2019 in Asia, while maintaining his expectation of a European launch in 2017. The small molecule inhibits the T790M EGFR mutant and the initial activating EGFR mutations. Clovis has rights from Avila Therapeutics Inc., which Celgene Corp. (NASDAQ:CELG) acquired (see "Finding a 4-Leaf Clover," A18).