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Auxilium Shares Gettin' Shafted

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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