Acrux (ASX: ACR) has received support for its first animal health product in Europe from the Committee for Medicinal Products for Veterinary Use (CVMP) of the European Medicines Agency (EMEA).
Acrux's veterinary product Recuvyra is a transdermal solution for dogs and is the first animal health product using Acrux’s drug delivery technology.
The committee recommended the granting of marketing authorisation for Recuvyra, and Acrux expects to receive it within the next 90 days.
The drug Recuvyra contains an active ingredient called Fentanyl, to control pain associated with orthopaedic and soft tissue surgery in dogs, that has been developed under licence by Elanco, the animal health division of Eli Lilly and Company (NYSE: LLY).
Eli Lilly has an exclusive worldwide licence to develop and commercialise animal health products utilising Acrux’s technology to deliver drugs through the skin.
Upon marketing authorisation, Acrux will receive from its marketing partner a milestone payment of $0.5 million, followed by royalties on sales of the product.
Acrux recently declared a special dividend of A$0.60, about A$100 million, where the dividend is unfranked and exempt from tax.
An analyst’s report by RBS Morgans on 31 March 2011 highlighted the launching of a testosterone topical solution from Eli Lilly, called Axiron, into the US market.
The report noted that the male testosterone therapy market in the United States is worth US$1 billion per annum and growing at a 20% clip annually.
Richard Treagus, Acrux chief executive officer, said “following the recent launch by Lilly of Axiron in the United States, this adds further momentum to Acrux’s partnership with Lilly.”