NEW YORK (TheStreet) -- Shares of Auxilium Pharmaceutical Inc. (AUXL) are down -15.02% to $23.25 in pre-market trade after the specialty biopharmaceutical company announced that it's reducing its financial guidance for the full year 2014 due primarily to lower-than-expected revenues from Testim testosterone gel.
In the first quarter of 2014, the company expects to record worldwide Testim revenues of about $11 million to $13 million, compared to $45.5 million in the first quarter of 2014
Full-year Testim sales for 2014 are now expected to be less than $85 million.
The company is continuing to finalize the close for the first quarter and will announce its total definitive net revenue, including definitive net revenue for Testim, on its earnings call planned for May 5.
TheStreet Ratings team rates AUXILIUM PHARMA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUXILIUM PHARMA INC (AUXL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."