I'm on Amtrak's Acela (the faster train) to Boston to do an exclusive interview tomorrow with Genzyme Chairman and CEO Henri Termeer. It'll be live on "Power Lunch" around 1:30p ET.
I was planning on spending the train trip reading up on GENZ, but I got easily sidetracked by the Auxilium news.
The company announced this morningthat a mid-stage study of an experimental drug for a curved penis met its goals. I've blogged about the treatment a couple of times. AUXL is partners on the drug with Pfizer , which knows a thing or two about marketing a product for penile problems.
But the stock is lower right now. Analyst David Moskowitz at Caris & Company says, "The data has some bugs." He points out that while the main measures of improvement showed statistical significance, a few of the quality of life measurements did not. "Overall, we believe the data are not very compelling," Moskowitz is telling clients. So, he's reiterating his Sell rating and $21 target.
But Leerink Swann still thinks the stock is a Buy and worth $40 over time. Analyst Joseph Schwartz thinks there's a knee-jerk reaction in this morning's stock movement.
"We believe it may trade up as people realize that there is a reasonable path forward in this horrific disease, which has only surgery with terrible outcomes, including shaft shortening and impotence," he writes in a research note.
By the way, the title of his note, in what I suspect is an attempt at penis humor, says focusing on the quality of life stuff is to "Miss The 'Point'."
LS may trade in shares of PFE.
Back to Genzyme.
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