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GSK agrees to co-promote Auxilium’s Testim in US

US biopharma Auxilium raises financial guidance for year based on deal for its testosterone gel brand

Auxilium's Testim testosterone gel

GlaxoSmithKline (GSK) has agreed a co-promotion deal with Auxilium Pharmaceuticals to exclusively market the testosterone gel Testim in the US.

Based on the news, Auxilium raised its estimated 2012 revenues from between $283m and $305m to between $293 and $315m.

The US biopharma now expects a maximum net loss of $10m rather the $15m it had previously expected.

GSK's sales reps are anticipated to begin promoting Testim, which is indicated for testosterone replacement therapy in adult males with a lack of testosterone, as early as the third quarter of 2012.

Auxilium will remain responsible for manufacturing Testim, as well as all regulatory activities.

The agreement is based on a minimum revenue forecast for the product up to September 30, 2015, which will have to be reached before GSK is compensated.

In addition, Auxilium will pay GSK specified tail payments following the term of the agreement if certain conditions are met.

Adrian Adams, president and CEO of Auxilium, explained that the “strength and breadth” of GSK's commercial operations in the US would allow more physicians to have access to the product, boosting sales.

In a statement, GSK said that Testim will complement the company's existing portfolio of cardiovascular, metabolic and urology products, with its sales force already having links with physicians regarding testosterone replacement therapy.

Cheryl MacDiarmid, VP of GSK's cardiovascular/metabolic/urology business, said: "Urology remains one of GSK's key therapeutic areas, and our sales professionals are well positioned to provide physicians with information on the treatment of hypogonadism.”

Insufficient secretion of testerone leads to low levels of the hormone in men, with symptoms including impotence, fatigue and mood depression.

The Testim gel contains one per cent of the same testosterone hormone as produced in the human body, and helps return testosterone to normal levels when absorbed into the bloodstream through the skin.

According to analysts IMS, sales of testosterone gels in the US comprised $1.4bn during 2011.

22nd May 2012

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