Pfizer (PFE) Approved for Xiapex in Europe

Pfizer Inc. (NYSE:PFE) announced late Monday they have received approval from the European Commission for the Dupuytren's contracture treatment Xiapex.

According to Pfizer, Xiapex is the first injectable treatment to be approved in the European Union for Dupuytren's contracture, and the drug will be made available in some European markets in the latter part of 2011.

Dupuytren's contracture causes the tendons of the hand to thicken and shorten, resulting in the fingers to curving inward. Pfizer has marketing rights to sell the treatment for Dupuytren's contracture in Europe.

For the rest of the world, Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL) has the marketing rights to sell Xiaflex.

Pfizer closed Monday at $19.24, gaining $0.38, or 2.01 percent. Auxilium closed at $22.47, up $0.06, or 0.27 percent.

Auxilium (NASDAQ:AUXL) Should Suffer Minimum Impact from Eli Lilly's (NYSE:LLY) Axiron

According to Jefferies, the recent approval by the FDA of Eli Lilly's (NYSE:LLY) Axiron shouldn't have a dramatic impact on Auxilium (NASDAQ:AUXL), as their key product driving the company is Xiaflex.

Jefferies said, "We believe Xiaflex adoption is gated by reimbursement concerns rather than clinical concerns and anticipate steady Xiaflex sales growth in 2011 with sales acceleration in 2012. We remain positive on a long-term peak sales potential in excess of $500m."

Although Jefferies doesn't believe Axiron will take over the entire market now served by Auxilium's Testim, it will take a big share, as it produced an 84 percent success rate versus Testim's 74 percent success rate.

Jefferies maintains a "Buy" rating on Auxilium, which closed Friday at $19.58, dropping $0.08, or 0.41 percent.