Auxilium Pharmaceuticals Inc announced that the company's breach of contract lawsuit against PDI Inc has been settled. The terms of the settlement include a one-time payment by PDI to Auxilium, the termination of existing contractual obligations between the two companies, and an agreement that PDI will delay the launch of its planned testosterone gel product until January 26, 2004.

"We are pleased that this lawsuit has been resolved amicably, and look forward to continuing to move forward with the successful U.S. launch of our new product Testim, a testosterone gel used to treat men with low testosterone," said Gerri Henwood, president and chief executive officer of Auxilium.

Auxilium's first product, Testim, received FDA approval to market in October 2002. The company successfully launched Testim nationally in February 2003. A European application for Testim was filed in April 2002. Testim is being marketed in the U.S. by Auxilium and its professional sales force.

"We continue to move forward aggressively in all areas of our effort to bring the demonstrated advantages of Testim to the millions of men who suffer from low testosterone," said Henwood.