Auxilium Pharmaceuticals Shares Slip On FDA Delay

NEW YORK (AP) — Shares of Auxilium Pharmaceuticals Inc. fell Thursday after the company said the Food and Drug Administration will take longer-than-expected to review the drug developer's experimental drug Xiaflex.

The stock fell 85 cents, or 3 percent, to $27.12 in midday trading. Shares have traded between $15.44 and $42.75 over the last 52 weeks.

Xiaflex is designed to treat a disease called Dupuytren's contracture, a diabetes-related condition where the tendons of the fingers and the palm of the hand thicken and shorten, causing the fingers to curve inward

Early Thursday, the Malvern, Pa.-based company said an FDA panel of experts will discuss the drug candidate on Sept. 16. But, the agency had been scheduled to make a ruling on the drug by Aug. 28. Auxilium said administrative issues at the agency are to blame for the delay.

Thomas Weisel Partners analyst Annabel Samimy brushed off the announcement, saying it is unsurprising because it is difficult scheduling a meeting of advisory panels in the summer.

"On the positive side, this news adds some clarity to the timeline for the Xiaflex review," she said, in a note to investors. "But the advisory committee date does effectively inject a minor delay to into the approval process."