Auxilium: Positive Movement Continues

by Steven T. Gold
BioHealth Investor



After the bell on Thursday specialty biotech drug developer Auxilium Pharmaceuticals Inc. (AUXL) said it agreed to sell about 3.7 million shares of stock for $14.50 per share to some institutional investors. The offer is supposed to net proceeds of about $49.9 million, which will be used for general corporate purposes, including working capital, product development and capital expenditures. The offering is expected to close on or before June 13. AUXL stock price reacted very favorably to the news on Friday posting a 7.44% gain up $1.08 to $15.59. AUXL was featured by Biotechinvestor.com just last week.

If you happened to buy this stock just last week in the mid-14’s you may want to take some profits and repurchase the stock at a later time. Although the stock price has plenty of room to move higher long-term its near-term movement should hover around the $14.50 institutional sale price. So, be cautious in the near-term, but because the company seems poised for long term growth, I would be a buyer anytime the stock crosses significantly below the 14.50 institutional sale price.


RELATED READING:
- Auxilium Pharmaceuticals: Not Just a Scar Tissue Play
- Auxilium Completes Phase 3 Enrollment, Analyst Downgrades!



BioHealth Investor.com
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Steven T. Gold, Esq., is a graduate of Yale University (B.A.) and the University of Florida (J.D., M.P.H.). Presently, Steve is working as an attorney while enrolled in a Master of Bioethics program at Penn. Steve is knowledgeable in the fields of public health, managed care, ethics and biotechnology. He is an avid and experienced investor who is presently starting a subscription newsletter and alert service, www.mentallystableinvesting.com. Steve will be a regular contributor to Biohealth Investor.
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