Auxilium Pharmaceuticals Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Auxilium Pharmaceuticals (NAS: AUXL) fell more than 13% in early trading after the company revealed lower demand for procedures relating to the hand disorder known as Dupuytren's contracture.

So what: Interestingly, "lower demand" doesn't equal lower revenue. Sales of its signature treatment, XIAFLEX, rose 130% year over year to $13.1 million, with $10.3 million of that originating in the United States.

Now what: Auxilium also reported a sharply better profit picture. Net loss narrowed to $0.08 per share, down from $0.27 a year ago. Analysts expected a $0.21 loss, according to data compiled by Yahoo! Finance. Do you think today's selling was overdone? Would you buy shares of Auxilium Pharmaceuticals at current prices? Please weigh in using the comments box below.

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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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