Auxilium reshuffles sales and marketing team to boost drug sales

Auxilium Pharmaceuticals (NASDAQ:AUXL) has reshuffled its marketing and public relations team to help boost sales of its drug Xiaflex as it reported earnings for the third quarter.

The Malvern, Pennsylvania drug company said it will eliminate the position of executive vice president of sales and marketing, a position held byRogerD. Graham Jr.,effective Nov.28, according to a U.S. Securities and Exchange Commission filing. On the conference call, the company said his position would not be replaced in order to “speed decision making.”

Ed Kessig, senior vice president of sales, and Rich Dudek, senior vice president of marketing, will report to the CEO Armando Anido. The advertising agency and public relations agency were replaced along with the senior director of marketing for the drug.

Xiaflex was launched last year for the treatment of Dupuytren’s contracture, a hand condition affecting north European men.

Still, revenue for Xiaflex doubled for the third quarter to $10.3 million, compared with the same time last year.

During the conference call, the company raised the issue of reimbursement challenges as one reason why sales were less-than-expected and the challenge of converting hand surgeons in the 18 months since the drug was launched. Anido voiced optimism that a change to CPT codes next year could help increase sales for Xiaflex in 2012.

The company is developing a pipeline for the drug that includes a phase 2b clinical trial for frozen shoulder starting in the fourth quarter of the year. A barking dog added a brief, lighthearted moment to the earnings call.

The company posted a $4.1 million loss on revenue of $66.7 million compared with a $12.8 million loss in the third quarter last year.