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Auxilium, Pfizer ending Xiapex deal

November 8, 2012 1:04 AM UTC

Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL) and Pfizer Inc. (NYSE:PFE) mutually agreed to terminate a 2008 deal granting the pharma exclusive European and Eurasian commercialization rights to Xiapex collagenase clostridium, effective April 24, 2013. Xiapex is approved in the EU and U.S., where it is known as Xiaflex, to treat Dupuytren's contracture in adult patients with a palpable cord, which affects joints in the hand. Auxilium, which will take over responsibility for Xiapex in the EU and Eurasia, said it is assessing "strategic options," but declined to provide details. In a conference call to discuss its 3Q12 financial results, which Auxilium also released on Wednesday, the biotech said both parties were "disappointed" with the partnership, which Auxilium said had "not achieved expectations." The company added that it was "disappointed" by the "adoption of Xiapex" in Europe.

Auxilium recorded 3Q12 Xiaflex/Xiapex revenues of $15.7 million, including $13.2 million in U.S. revenues. Pfizer said it has recorded $6.1 million in EU Xiapex revenues for the first nine months of 2012, but the pharma declined to break out Xiapex revenues for the quarter. Auxilium raised its ex-U.S. Xiaflex revenue guidance to $101-$103 million from $10-$12 million for the year. The guidance includes $94 million in deferred revenue and $9 million in deferred costs that Auxilium will recognize in 4Q12 as a result of the deal termination. ...