At least three analysts have downgraded Auxilium Pharmaceuticals (NASDAQ:AUXL) this morning after the company reported strong second quarter earnings yesterday, with the stock approaching its 52-week high. The stock’s recent move, full valuation, and a lack of near-term drivers to move the stock higher are the key reasons for the downgrades. Second quarter strength was driven by outperformance of Testim, the company’s treatment for hypogonadism, although this product is not expected to drive long-term value given generic competition in the segment anticipated in the next couple of years. The once-perceived core value drive, Xialflex (an alternative treatment to surgery for Dupuytren’s Contracture) had weak sales in the second quarter, coming in at $14.4 million, down since last quarter and missing the consensus estimate of $16.8 million. Expect a pull-back in the stock today on the downgrades and profit-taking from yesterday’s run-up.