(NASDAQ: AUXL)

October/November 

2008

Exhibit 99.1

2

(NASDAQ: AUXL)

Safe Harbor Statement

Safe Harbor Statement

We

will

make

various

remarks

during

this

presentation

that

constitute

“forward-looking

statements”

for

purposes

of

the

safe

harbor

provisions

under

The

Private

Securities

Litigation

Reform

Act

of

1995,

including

statements

regarding

the

pricing,

time

to

market,

size

of

market, growth potential and therapeutic benefits of the Company’s product candidates, including those for the treatment of Dupuytren’s

contracture, Peyronie’s disease, and Frozen Shoulder syndrome; interpretation of market research data; competition within certain

markets relevant to the Company’s product candidates; interpretation of clinical results, including the efficacy and tolerability of the

Company’s product candidates; the timing of the commencement and completion of clinical trials and the timing of reporting of results

therefrom; the timing of manufacturing scale up for the Company’s product candidates; the Company’s ability to manufacture XIAFLEX™

(clostridial

collagenase

for

injection

–

formerly

referred

to

as

AA4500)

at

the

Company’s

Horsham

facility;

the

timing

of

the

filing

of

the

Biologics License Application for approval of XIAFLEX for the treatment of Dupuytren’s contracture and the approval thereof; the timing of

the completion of enrollment in the phase IIb trial for XIAFLEX for the treatment of Peyronie’s disease and the release of results

therefrom; competitive developments affecting the Company’s products and product candidates, including generic competition; the

success of the Company’s development activities; future Testim market share, prescriptions and sales growth and factors that may drive

such growth; size and growth potential of the testosterone replacement therapy market and the gel segment thereof and factors that may

drive such growth; the protection for Testim afforded by U.S. Patent No. 7,320,968, and its listing in the Orange Book, the value of

extending

patent

protection

for

Testim

through

January

2025,

the

value

and

likelihood

that

patents

will

be

granted

from

the

continuation

and divisional applications filed by CPEX

Pharmaceuticals, Inc.; the impact of the filing by Upsher-Smith Laboratories, Inc. of an ANDA

for

a

testosterone

gel;

the

Company’s

development

and

operational

goals

and

strategic

priorities

for

fiscal

2008;

the

ability

to

fund

future

operations;

the

timing

of

conclusion

of

partnering

discussions

for

XIAFLEX

in

Europe;

and

the

Company’s

expected

financial

performance

during 2008 and financial milestones that it may achieve for 2008, including 2008 net revenues, research and development spending,

selling, general and administrative expenses, stock-based compensation expenses, and net loss.  All remarks other than statements of

historical facts made during this presentation, including but not limited to, statements regarding future expectations, plans and prospects

for

the

Company,

statements

regarding

forward-looking

financial

information

and

other

statements

containing

the

words

“believe,”

“may,”

“could,”

“will,”

“estimate,”

“continue,”

“anticipate,”

“intend,”

“should,”

“plan,”

“expect,”

and similar expressions, as they relate to the

Company, constitute forward-looking statements. Actual results may differ materially from those reflected in these forward-looking

statements due to various factors, including general financial, economic, regulatory and political conditions affecting the biotechnology

and pharmaceutical industries and those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31,

2007 under the heading “Risk Factors”, which is on file with the Securities and Exchange Commission (the “SEC”) and may be accessed

electronically

by

means

of

the

SEC’s

home

page

on

the

Internet

at

http://www.sec.gov

or

by

means

of

the

Company’s

home

page

on

the

Internet at http://www.auxilium.com under the heading “Investor Relations -

SEC Filings.”

There may be additional risks that the Company

does not presently know or that the Company currently believes are immaterial which could also cause actual results to differ from those

contained in the forward-looking statements. Given these risks and uncertainties, any or all of these forward-looking statements may

prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements.

In

addition,

forward-looking

statements

provide

the

Company’s

expectations,

plans

or

forecasts

of

future

events

and

views

as

of

the

date

of

this

presentation.

The

Company

anticipates

that

subsequent

events

and

developments

will

cause

the

Company’s

assessments

to

change.

However,

while

the

Company

may

elect

to

update

these

forward-looking

statements

at

some

point

in

the

future,

the

Company

specifically

disclaims

any

obligation

to

do

so.

These

forward-looking

statements

should

not

be

relied

upon

as

representing

the

Company’s

assessments

as

of

any

date

subsequent

to

the

date

of

this

presentation.

+

=

Late Stage

Blockbuster

Product

Opportunity

Fastest Growing

TRT product in

the U.S.

Poised for Growth

4

(NASDAQ: AUXL)

Auxilium Pharmaceuticals, Inc.  (NASDAQ: AUXL)

Auxilium Pharmaceuticals, Inc.  (NASDAQ: AUXL)

•

Specialty biopharmaceutical company focused on Urologists,

Endocrinologists, Orthopedists and certain PCPs

•

Founded in 1999

•

Headquarters in Malvern, Pa.

–

Manufacturing in Horsham, Pa.

–

Approximately 330 employees (~190 commercial)

•

I.P.O in July 2004

–

Currently approximately 41.4 million shares issued & outstanding

–

Additional 6.6 million shares subject to issuance from stock

options & warrants

•

A component of the NASDAQ BIOTECH INDEX

5

(NASDAQ: AUXL)

Broad Maturing Pipeline

Broad Maturing Pipeline

Note:  Worldwide rights for all products available, except Testim where ex -U.S. rights have been licensed.

XIAFLEX™

(clostridial collagenase for injection) was formally referred to as AA4500

Product

Late Research

Testim®

gel

Approved in U.S.

Europe & Canada

XIAFLEX™

XIAFLEX™

XIAFLEX™

Transmucosal Film

AA4010

Transmucosal Film

Transmucosal Film

Market

Phase III

Phase II

Phase I

Pre-clinical

Late Research

Hypogonadism

Dupuytren’s Contracture

Peyronie’s Disease

Frozen Shoulder Syndrome

Overactive Bladder

Hormones and Urology

Pain (fentanyl)

6

(NASDAQ: AUXL)

Anticipated News Flow Events

Anticipated News Flow Events

5

End of 2009:

•

XIAFLEX-

Results of Peyronie's

Phase IIb Study

H109:

•

XIAFLEX-Open Label Dupuytren’s

Contracture Safety Data

Early 2009:

•

XIAFLEX-File BLA for

Dupuytren's Contracture

Early 2010

XIAFLEX –

FDA Approval

In Dupuytren’s Contracture

Q409

Q309

Q209

Q109

Q408

2010

7

(NASDAQ: AUXL)

XIAFLEX-

XIAFLEX-

Unique, Late-Stage, Blockbuster

Unique, Late-Stage, Blockbuster

Opportunity

Opportunity

•

Potential to be first effective non-surgical treatment for two

high unmet needs

–

Dupuytren’s contracture

–

Peyronie’s disease

•

Well-characterized mode of action

•

Worldwide rights offer options

–

Build company

–

Partner and generate cash

•

We believe there are at least 450,000 potential patients

annually in U.S. and EU for Dupuytren’s & Peyronie’s

indications -

> $1 Billion opportunity, based on market

research and analysis

8

(NASDAQ: AUXL)

Dupuytren’s Contracture—a Debilitating Condition

Dupuytren’s Contracture—a Debilitating Condition

•

Excessive collagen deposition

•

Nodules represent early, active

form

•

Cords develop over time, are

palpable, and result in

contractures

•

Debilitating effect on quality of life

•

Surgery may be reserved for

advanced disease due to

unpredictable results,

complications, long recovery and

recurrence/additional surgeries

9

(NASDAQ: AUXL)

Current Treatment Options Are Invasive or

Current Treatment Options Are Invasive or

Ineffective

Ineffective

•

Surgery

•

Non-surgical options

–

Splinting

–

Physical therapy

–

Corticosteroids

•

Needle

fasciotomy/

aponeurotomy

•

Amputation

10

(NASDAQ: AUXL)

Dupuytren’s Contracture—Unmet Medical Need

Dupuytren’s Contracture—Unmet Medical Need

•

Disease prevalence is estimated at 3%-6% among adult

Caucasians,  but occurs in all populations

•

Higher

prevalence

in

patients

of

northern-European

descent

•

Hereditary

component

in

approximately

40%

of

patients

•

On

average,

patients

have

2.2

affected

joints

at

the

time

of

diagnosis,

and

about

half

of

patients

have

bilateral

disease

•

Recurrence

rate

in

surgical

patients

–

30% in 2 years

–

55% in 10 years

•

We

believe

Dupuytren’s

contracture

is

under-diagnosed

and

under-treated

1

Tubiana

2006.

2 

Hueston 1963

3

Skoog 1948

4

Mikkelsen 1976

1

1

2

3

4

11

(NASDAQ: AUXL)

XIAFLEX—Potential to Revolutionize Treatment

XIAFLEX—Potential to Revolutionize Treatment

for Dupuytren’s Contracture

for Dupuytren’s Contracture

12

(NASDAQ: AUXL)

XIAFLEX—Potential to Revolutionize

XIAFLEX—Potential to Revolutionize

Treatment for Dupuytren’s Contracture

Treatment for Dupuytren’s Contracture

13

(NASDAQ: AUXL)

CORD I Design

CORD I Design

•

Largest ever double-blind, placebo-controlled

trial in Dupuytren’s contracture

–

randomized in 2:1 ratio of active to placebo

–

enrolled a 2:1 ratio of MP:PIP

–

enrolled 1:1 ratio of less severe to more severe joints

•

Primary endpoint is reduction in contracture to

within 0 -

5°

of normal

•

Secondary endpoints to measure clinical

improvement and time to success

–

>50% improvement in contracture

–

change in primary joint degree of contracture

•

3 month and 12 month safety profile

14

(NASDAQ: AUXL)

Primary Endpoint Outcome Compares Favorably

Primary Endpoint Outcome Compares Favorably

To Surgery

To Surgery

15

(NASDAQ: AUXL)

4 Out Of 5 Dupuytren’s Contracture Patients

4 Out Of 5 Dupuytren’s Contracture Patients

Improved By   50%

Improved By   50%

16

(NASDAQ: AUXL)

Contracture Reduction By Degrees Indicates Average

Contracture Reduction By Degrees Indicates Average

XIAFLEX Patient Achieves ~10°

XIAFLEX Patient Achieves ~10°

Of Contracture

Of Contracture

17

(NASDAQ: AUXL)

XIAFLEX Phase III AE and SAE Rates Should

XIAFLEX Phase III AE and SAE Rates Should

Compare Favorably To Surgical Complications

Compare Favorably To Surgical Complications

Serious Adverse Events

Number

Rate/Inj.

Tendon / Ligament*:

Confirmed Tendon Rupture

3

0.12%

Ligament Injury

1  

0.04%

Total Tendon / Ligament

4

0.15%

Deep Vein Thrombosis

1

0.04%

Unconfirmed

Proliferation

of

Dupuytren’s

Disease 1

0.04%

Complex Regional Pain Syndrome

1  

0.04%

Total

7  

0.27%

Note:  > 2,600 injections in approximately 1000 patients from CORD, JOINT

and PK studies as of July 31, 2008.

*one unconfirmed tendon injury was changed to confirmed tendonitis

•

Common adverse events and rates were consistent with prior

XIAFLEX trials

18

(NASDAQ: AUXL)

CORD I Key Takeaways

CORD I Key Takeaways

•

Primary endpoint of    5°

reached in 64% of patients

(p<0.001)

–

25 of 26 endpoints met with statistical significance

of <0.001, 1 of 26 was met with a p-value = 0.002

–

Of the 73 patients who didn’t respond, 44 received

less than 3 injections and 25 had no palpable cord

•

Primary joint contractures improved

50% in 4 out of 5

patients

•

82.2% of patients receiving XIAFLEX completed the

study with contractures  

25°

•

Less severe contractures responded better than more

severe contractures

•

MP joints responded better than PIP joints

•

Safety profile compares favorably to surgery

–

No systemic exposure and no allergic reactions

19

(NASDAQ: AUXL)

We believe:

•

There is a pent-up demand for non-surgical therapy

•

Surgeons and patients prefer non-invasive treatment

•

Each patient on average has 2.2 joints which will require

treatment; about half have contractures in both hands

•

Early data indicates on average 1.4 vials of XIAFLEX required

per joint

2.2 joints per patient x 1.4 vials per joint = 3.1 vials per patient on

average

•

We believe XIAFLEX treatment can be priced competitively to

cost

of

surgery

(~$5,000

in

the

U.S.

–

equates

to

$1,600

per

vial)

Dupuytren’s Commercial Opportunity

Dupuytren’s Commercial Opportunity

20

(NASDAQ: AUXL)

Market Research Performed –

Market Research Performed –

Dupuytren’s

Dupuytren’s

•

Multiple prevalence data sets proved to be highly variable in

numbers of patients

•

Two rounds of quantitative primary research have been

commissioned by Auxilium on XIAFLEX for Dupuytren’s

contracture

•

A combined 571 Orthopedic Surgeons have been interviewed to

estimate market size (401 in U.S.; 170 in Europe) and 391 have

given feedback on potential usage of XIAFLEX (221 U.S.; 170

Europe)

•

Second study (n=444 total & 340 in depth) was designed to

provide 95% confidence level and 7.5% margin of error

21

(NASDAQ: AUXL)

Patients

Seeking

Treatment

~1,030,000

No Prior

Surgery

~540,000

Had Surgery

Previously

~490,000

Watchful

Waiting

~270,000

Medical/

Surgical

Treatment

~270,000

Medical/

Surgical

Treatment

~125,000

Watchful Wait/

In Follow Up

~365,000

XIAFLEX

Potential

Candidates

~240,000 or 60%

of the

Medical/Surgical

Candidates

At least 240,000 Dupuytren’s Candidates In U.S. & Europe

At least 240,000 Dupuytren’s Candidates In U.S. & Europe

Annually

Annually

Source: 2006 Auxilium research and analysis

~150,000 in U.S.

~ 90,000 in Europe

Prevalence      

3 –

6% of

Population

~13,500,000 to

27,000,000

22

(NASDAQ: AUXL)

XIAFLEX I.P. Position  for Dupuytren’s

XIAFLEX I.P. Position  for Dupuytren’s

Contracture

Contracture

•U.S. Orphan Drug Exclusivity granted on May 23, 1996

for 7 years post approval

•Market Exclusivity expected in EU for 10 years post-

approval

–Data protection granted for 8 years

•Method of Use Patent in U.S. through 2014

•Use Patent in France, UK, Sweden through 2018

–Pending in Germany and Denmark

•Highly Purified Collagenase API  and manufacturing

patent filed (if issued, expected expiry 2027)

23

(NASDAQ: AUXL)

Expected Pathway to BLA Filing in Early 2009

Expected Pathway to BLA Filing in Early 2009

•

Complete 12 month open-label safety follow up from

>100 CORD I patients originally randomized to

XIAFLEX

•

Complete open-label CORD II and JOINT I/II trials to

attain 1,000 patient exposure data

•

Finalize BLA filing (CMC, etc.)

24

(NASDAQ: AUXL)

1. Smith BH. Am J Clin Pathol. 1966;45:670-678.

2. Somers KD, Dawson DM. J Urol. 1997;157:311-315.

Peyronie’s Disease—a Devastating Disorder

Peyronie’s Disease—a Devastating Disorder

•

Scarring phenomenon affecting the

tunica albuginea

•

Plaques show excessive collagen

deposition

•

Potential Symptoms

–

Pain with erection, penile

curvature/deviation, penile

shortening, indentations, and/or

erectile dysfunction

–

May experience difficulty with sexual

intercourse, loss of self-esteem, and

depression

•

There are no approved therapies

for the treatment of Peyronie’s

disease

1

2

25

(NASDAQ: AUXL)

Epidemiology—Peyronie’s Disease

Epidemiology—Peyronie’s Disease

•

Prevalence of Peyronie’s disease is estimated at 1 in 20

adult men

–

Actual prevalence higher based on autopsies

•

Prevalence rate increases with age

–

The average age of disease onset is 53 years

•

High association with other diseases such as:

–

Diabetes, erectile dysfunction (ED), Dupuytren’s

contracture, plantar fascial contracture,

tympanosclerosis, gout, and Paget’s disease

4

•

We believe Peyronie’s disease is under-diagnosed and

under-treated

1. Schwarzer

U, The prevalence of Peyronie’s disease: Results of a large survey.

BJU Int

2001;88:727–30;

Mulhall

et al: J Urology

2004:171: 2350 –

2353;Rhoden

et al: Int J. Impot

Res

2001 :13 : 291 –

293; La Pera

et al : EUR Urology

2001: 40

:525 –

530.

2. Smith BH. Am J Clin Pathol. 1966;45:670-678.

3. Lindsay MB, J Urol.

1991;146:1007–1009.

4. Nyberg L, J Urol.128: 48, 1982

2

3

1

26

(NASDAQ: AUXL)

Current Treatment—Surgical

Current Treatment—Surgical

•

The goal of surgery is simply to make the two sides of the

penis equal in size

•

Graft or prosthetic may be required

•

Cost of surgery in U.S. is ~$10-12K

27

(NASDAQ: AUXL)

Peyronie’s Disease—Unapproved Treatments

Peyronie’s Disease—Unapproved Treatments

Have Been Used With Little Reported Success

Have Been Used With Little Reported Success

•

Verapamil

•

Vitamin E

•

Colchicine

•

Potassium aminobenzoate (Potaba)

•

Tamoxifen

•

Interferon alpha-2a

•

Corticosteroids

•

Energy transfer treatment including

extracorporeal shock wave therapy (ESWT),

laser and ultrasound therapy, and

orthovoltage radiation

28

(NASDAQ: AUXL)

Promising Phase II Results: Patients With   25%

Promising Phase II Results: Patients With   25%

Reduction in the Angle of Deviation

Reduction in the Angle of Deviation

Study 1030

58%

53%

35%

0%

20%

40%

60%

80%

100%

Month 3

Month 6

Month 9

Study 1035

50%

100%

100%

89%

0%

20%

40%

60%

80%

100%

Week 6

Month 3

Month 6

Month 9

29

(NASDAQ: AUXL)

Peyronie’s Phase IIb

Peyronie’s Phase IIb

Study Enrolling Patients

Study Enrolling Patients

•

Study designed to assess the safety and efficacy of XIAFLEX.

–

XIAFLEX will be administered two times a week every six weeks for up to

three treatment cycles (2 x 3)

–

~120 patients

–

~11 U.S. sites

•

Patients must be able to maintain a rigid erection and have a

penile contracture between 30 and 90 degrees.

–

Stratification occurs by the degree of penile curvature (i.e. 30°

to 60°

versus > 60°).

•

Patients will be monitored for 36 weeks following first injection.

•

Enrollment expected to be complete in Q1 2009.

30

(NASDAQ: AUXL)

Peyronie’s Phase IIb

Peyronie’s Phase IIb

Study Design

Study Design

•

Patients will be randomized in a 3:1 ratio of XIAFLEX to

placebo and a 1:1 ratio to receive penile plaque modeling

or no modeling.

120

15

no

Placebo

D

45

no

XIAFLEX

C

15

yes

Placebo

B

45

yes

XIAFLEX

A

Targeted Number of

Patients

Plaque Modeling

Study Drug

Arm

31

(NASDAQ: AUXL)

Peyronie’s Phase IIb

Peyronie’s Phase IIb

Patient Reported Outcome

Patient Reported Outcome

(PRO)

(PRO)

•

Study is also designed to validate a proprietary Peyronie’s

Patient Reported Outcome (PRO) questionnaire.

•

PRO will measure four domains of patients’

sexual quality

of life, over a 36 week period:

–

penile pain

–

Peyronie’s disease bother

–

intercourse discomfort

–

intercourse constraint

•

PRO likely to be used as a primary efficacy endpoint in

Phase III clinical trials.

32

(NASDAQ: AUXL)

Market Research Performed –

Market Research Performed –

Peyronie’s

Peyronie’s

•

Two rounds of quantitative primary research have

been commissioned by Auxilium on XIAFLEX for

Peyronie’s disease

•

A combined 575 Urologists have been interviewed to

estimate market size (415 in U.S.; 160 in Europe) and

383 have given feedback on potential usage of

XIAFLEX (223 U.S.; 160 Europe)

•

Second study (n=472 total & 333 in depth) was

designed to provide 95% confidence level and 7.5%

margin of error

33

(NASDAQ: AUXL)

Patients

Seeking

Treatment

~475,000

Surgery Not

Recommended

~365,000

Watchful

Waiting

~160,000

Medical or

Intralesional

Therapy

~205,000

Surgery

Recommended

~110,000

XIAFLEX

Potential

Candidates or

67% of

Medical/

Surgical

candidates

~210,000

At least 210,000 Peyronie’s Candidates In U.S. and Europe

At least 210,000 Peyronie’s Candidates In U.S. and Europe

Annually

Annually

Source: 2006 Auxilium research and analysis

~135,000 in U.S.

~ 75,000 in Europe

Prevalence      

1 in 20 Adult

Males

34

(NASDAQ: AUXL)

XIAFLEX I.P.  Position for Peyronie’s

XIAFLEX I.P.  Position for Peyronie’s

Disease

Disease

•U.S. Orphan Drug Exclusivity granted on March 12, 1996

for 7 years post approval

•Market Exclusivity in EU could be extended to 11 years on

approval of additional indication

–Biosimilars would need to generate extensive regulatory, safety,

and efficacy data

•Method of Use Patent in U.S. through 2019

•Use Patent Granted in France, UK, and Ireland (expiry 2020)

–Pending in Germany, Denmark, and Norway

•Highly Purified Collagenase API and manufacturing patent

filed (if issued, expected expiry 2027)

35

(NASDAQ: AUXL)

Testim

®

1% Testosterone Gel:

Near-Term Growth Driver

Executing on Opportunities

36

(NASDAQ: AUXL)

Testim®

Testim®

is the Fastest Growing Testosterone

is the Fastest Growing Testosterone

Replacement Therapy Gel

Replacement Therapy Gel

•

Proprietary, topical

1% testosterone gel

–

Once-a-day application

–

Favorable clinical and commercial profile

•

Recent study indicates 39% of U.S. males over 45 yrs

are hypogonadal*

–

We estimate that less than 10% of affected population

receives treatment

•

We believe diagnosis is increasing through education

and awareness

*Mulligan T. et al. Int J. Clin Pract

2006

37

(NASDAQ: AUXL)

Patient Benefits are Clinically Proven

Patient Benefits are Clinically Proven

Note:

Adjusted geometric means (CV

b

%) of a single-dose (50 mg testosterone), randomized,

complete crossover study of 29 hypogonadal men.

Total Testosterone

2,000

3,000

4,000

5,000

6,000

Mean AUC

0-24

(ng*h/dL)

Testim

AndroGel

Free Testosterone

0

50

100

150

200

250

Mean AUC

0-24

(ng*h/dL)

Testim

AndroGel

•

16 clinical studies involving approx. 1,800 patients

–

largest placebo-controlled study ever conducted

•

Clinical trial of Testim

®

vs. AndroGel

®

–

Testim provides 30% higher testosterone absorption (p<0.001)

38

(NASDAQ: AUXL)

Gels Fastest Growing TRT Segment

Gels Fastest Growing TRT Segment

Source: IMS data

($ in millions)

Gel

Patch

Oral

Injectables

$35

$117

$200

$287

$340

$383

$449

0

100

200

300

400

500

600

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

$459

$399

$302

$210

$77

$59

$49

$499

$118

$568

Gel Segment Growth ($)

Sep 2008 L12M: 

23.4%

Gel Segment Growth ($)

Gel Segment Growth ($)

Sep 2008 L12M: 

Sep 2008 L12M: 

23.4%

2007

700

$685

$563

39

(NASDAQ: AUXL)

$-

$5

$10

$15

$20

$25

$30

$35

0

20

40

60

80

100

120

140

Net Revs

TRX

Testim

®

®

quarterly net revenues and scripts

($ in millions)

Established Track Record of Consistent Growth

Established Track Record of Consistent Growth

Q3 2008 Net

Revenues

Y/Y Growth:

+24.2%

Q3 2008 Net

Q3 2008 Net

Revenues

Revenues

Y/Y Growth:

Y/Y Growth:

+24.2%

Q3 2008 TRX

YY Growth:

+24.7%

Q3 2008 TRX

Q3 2008 TRX

YY Growth:

YY Growth:

+24.7%

Source: Auxilium and IMS data

40

(NASDAQ: AUXL)

We Believe Testim Is Driving Growth in

Overall Gel Market

Source: IMS data

Testim Share of TRx of Gel Market

gel market share of

decile

8 -

10 PCPs (32.0%)

gel market share of decile

8 -

10 Urologists (41.6%)

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(NASDAQ: AUXL)

U.S.

•

U.S. Patent # 7,320,968* covering method of use claims for Testim issued

January 22, 2008; expires 2025

•

Divisional application and continuations filed with U.S. PTO in late 2007 with

a plan to protect additional inventions and seek additional claims

•

Upsher-Smith Laboratories, Inc. filed an ANDA with paragraph IV

certification referring to the ’968 patent; AUXL received notice on Oct. 23,

2008; details of the notice are currently under legal review

ROW

•

New patent issued in Canada; expires 2023

•

New patent issued in Europe; expires 2023

•

Patents granted and applications pending in numerous countries worldwide

Testim Patent Coverage

*Note: The referenced Testim patents are owned by CPEX Pharmaceuticals, Inc.

42

(NASDAQ: AUXL)

2008

Q3 ’08

9M’08

Guidance

Revenues

$32.6

$90.6

$120-125

R&D Expense

$13.3

$39.9

$52-56

SG&A Expense

$21.9

$65.1

$88-92

Net Loss

($10.1)

($34.1)        ($44-48)

Stock –

Based

Comp Expense

$3.2

$8.1

$9-11

Cash & cash equivalents

$46.4

3Q08 Financial Results and 2008 Guidance

3Q08 Financial Results and 2008 Guidance

($ Millions)

($ Millions)

43

(NASDAQ: AUXL)

Strategic Priorities

Strategic Priorities

•

Continue Development of XIAFLEX with a plan to:

–

1) vigorously defending Testim and continuing to support the

brand;

–

2) filing of the XIAFLEX BLA for Dupuytren’s contracture, which we

expect to achieve in early 2009;

–

3) continuing our pre-launch commercialization efforts for an

expected US launch of XIAFLEX in early 2010;

–

4) continuing enrollment in the Peyronie’s disease Phase IIb

trial,

which we expect will be completed in the first quarter of 2009;

–

5) concluding our partnering discussions for XIAFLEX in Europe.

•

Continue Driving Testim Growth

44

(NASDAQ: AUXL)

+

=

Late Stage

Blockbuster

Product

Opportunity

Fastest Growing

TRT product in

the U.S.

Poised for Growth