(RTTNews) - Wednesday, Auxilium Pharmaceuticals Inc. (AUXL: News ) reported a wider loss for third quarter, reflecting an increase in expenses related to potential U.S. launch of Xiaflex and as well as a rise in stock-based compensation costs.

Auxilium's net loss for the third quarter widened to $14.9 million or $0.35 per share from $10.1 million or $0.24 per share a year earlier. On average, fourteen analysts polled by Thomson Reuters expected the company to report a loss of $0.31 per share for the quarter.

Quarterly net revenues rose by 29.3% to $42.1 million from $32.6 million for the same period last year. Analysts estimated revenues of $41.23 million for the third quarter.

Testim, the company's hypogonadism treatment gel, sales increased 25.1% year-over-year to $40.2 million from $32.1 million. The company's revenue increase was helped by a $1.1 million of ex-U.S. partner milestone revenue and shipments of Testim. Revenues of $0.9 million from the amortization of upfront payments related to the out-licensing of the company's Peyronie's disease drug, Xiaflex also contributed to the rise in net revenues.

The company's total operating expenses increased to $56.98 million from $43.03 million for the year-ago period. The increase in operating expenses was mainly due to a rise in selling, general and administrative expenses to $34.68 million from $21.93 million last year which was a result of company's preparations for a potential U.S. launch of Xiaflex and also due to a rise in stock-based compensation costs.
In September, the company had received a unanimous vote for approval of Xiaflex for Dupuytren's contracture from the U.S. Food and Drug Administration's Arthritis Advisory Committee.

Xiaflex has completed phase 3 clinical trials for the treatment of Dupuytren's contracture, and the biologics license application is under review at the FDA for the treatment of Dupuytren's contracture. The drug is currently in mid-stage development for the treatment of Peyronie's disease and Frozen Shoulder syndrome.

Earlier, in August, the FDA in response to the company's Citizen's petition said that, a testosterone gel product, Testim which has different penetration enhancers has to be submitted as a New Drug Application and not as an abbreviated new drug application.

AUXL is currently trading at $31.57, down by $0.24 or 0.75% on Nasdaq.

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by RTT Staff Writer

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