Australian drug developer Acrux (ASX:ACR) has inked an exclusive global licensing deal with pharmaceutical giant Eli Lilly for the commercialisation of AXIRON, to treat testosterone deficiency in men.
The company said this would progress Acrux to become the first Australian biotech company to introduce a number of therapeutic products into global pharmaceutical markets.
Under the terms of the AXIRON deal, Acrux is eligible to receive up to US$335 million in milestone payments, plus royalties on worldwide sales.
Acrux uses its innovative technology to administer drugs through the skin.
Acrux has forecast a maiden profit after tax for 2009/10 between $44 million and $48 million. With dividend payments to commence in 2011, subject to FDA approval of AXIRON.
Acrux was founded as a spin-off from Monash University a decade ago.
Eli Lilly has worldwide sales of its erectile dysfunction treatment Cialis® of US$1.6 billion in 2009, now rivalling Pfizer’s Viagra® as the largest selling product in this category.
Acrux believes that Lilly has the expertise and capabilities in men’s health that will enable Acrux to achieve the full commercial potential of AXIRON.
From the initial payment of US$50 million, third-party royalties of approximately A$1.9 million are expected to be payable.