VOLUME SPIKE: Auxilium Pharmaceuticals (AUXL)

Posted in General 
June 3rd, 2008

Auxilium Pharmaceuticals Inc. (NASDAQ: AUXL) is seeing a major surge in trading today.  In fact, shares have now traded 650,000 shares and have nearly met its average trading volume with about 50 minutes to the open.  The company reported that its experimental treatment for Dupuytren’s contracture met its primary endpoint in two Phase III studies.  Auxilium plans to submit an application for approval with the Food and Drug Administration in early 2009.

You can read the full conjecture on the news at Biohealthinvestor.com. What is interesting is that if you read through the press release it all sounds good and like this may be a new treatment.

Shares had been down down by close to 10% in pre-market trading at about 8:20 AM EST but shares have somewhat recovered to $29.50 to $29.60 at 8:43 AM EST.  Shares closed at $31.53 Monday.  The 52-week trading range is $14.37 to $36.14, and its market cap before today’s drop was about $1.3 Billion.

On a further review, there was also quite a bit of options betting on this stock as the open interest in th eJune options was large.  There were more than 14,000 contracts in the June $35 CALLS and more than 12,000 contracts in the June $40 CALLS listed in the open interest.

Jon Ogg
June 3, 2008

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