Acrux (ACR) suffered its worst sell-off in 14 months on a disappointing sales update on its flagship testosterone treatment drug.
The stock crashed 12.5% to its lowest level this calendar year of $2.74 at 10.30 AEST when management warned that growth in the global testosterone market continues to slow and market share for its drug Axiron, which is exclusively distributed by Eli Lilly, is flattening.
The potential bad news was flagged in our article yesterday, although it has come a little sooner than we had anticipated. Investors will be keen on hearing what other growth plans the company has at its AGM on November 21.
Eli Lilly reported sales of Axiron came in at $US40.6 million in the September quarter compared with $US47.1 million in the previous quarter.
The fact that Eli Lilly will pay Acrux $US25 million as milestone payment provides little comfort for investors.
Acrux is the worst performer in the Uncapped 100 this morning.