Shares in Acrux (ACR) jumped 1.4% to $3.55 this morning on news of a material increase in sales of its spray on testosterone treatment.
Pharmaceutical giant Eli Lily, which is the exclusive distributor of Acrux’s Axiron, reported sales of $US47 million in the June quarter, or a 27% increase from the previous quarter and a three-fold increase in nine months.
Total sales for Axiron reached $US124 million in the 2012-13 financial year and royalties paid to Acrux has jumped to $14 million from $6 million in the previous year.
Royalties are calculated as a percentage of sales and Acrux expects this percentage to increase in the current financial year as sales of Axiron hits certain milestones.
Speaking of milestones, Acrux will receive a $US25 million milestone payment from Eli Lily if worldwide net sales of Axiron exceed $US100 million in the 2013 calendar year. Acrux only needs $US16 million in additional sales from now to the end of the December to achieve this milestone.
Acrux is part of the Uncapped 100.