Ahead of the Bell: Auxilium Pharma

Soleil Securities analyst Matt Renna upgraded the Malvern, Pa., company to "Buy" from "Hold," saying he expects positive data from a clinical trial of the company's drug candidate Xiaflex. Analysts expect the company to report data from a late-stage trial of the drug during the second quarter.

Xiaflex treats Dupuytren's contracture, a diabetes-related condition in which the fingers curve inward because the tendons of the palm and fingers shorten. Renna said Xiaflex will become the standard treatment for Dupuytren's.

Merriman Curhan Ford analyst Russell McAllister downgraded the stock to "Sell" from "Neutral," however. He said evidence linking the drug to tendon ruptures could delay the approval and launch of the drug.

Renna believes that if tendon ruptures occur in the trial, they will be linked to mistakes in injecting the drug. He added that the stock has fallen to fair price.

Auxilium shares set an all-time high of $36.14 in February, but closed at $23 Thursday. Renna set a price target of $34 per share.