Acrux (ASX: ACR) has reported a first half 2013 profit before tax of A$2.5 million, a 48% gain over the previous corresponding period’s $1.7 million.
The company expects to declare its next dividend in August. Cash reserves currently sit at $19 million.
Revenues rose to $5.1 million, up from the prior $4.7 million, driven largely by an increase in U.S. transdermal testosterone therapy prescription growth and Axiron market share growth.
Axiron is an underarm prescription medication that contains testosterone used to treat adult men with low or no testosterone. It is the only treatment for low testosterone applied to the underarms.
The testosterone therapy market in the U.S. grew strongly in 2012, with the number of transdermal therapy prescriptions about 28% higher than 2011.
Transdermal prescriptions in January 2013 were around 18% higher than January 2012.
The growth of Axiron’s weekly share of prescriptions accelerated in December 2012 and January 2013.
Share of total prescriptions of transdermal products excluding patches increased from 13.3% on 30 November 2012 to 14.6% on 1 February 2013, while share of new prescriptions increased from 13.7% on 30 November to 16.4% on 1 February.
In January 2013, 21 months after launch, Axiron had the second largest share of new prescriptions.
Acrux expects this milestone to follow for total prescriptions in the near term.
Importantly, Acrux expects significant growth in the royalties on Axiron net sales in 2013, driven by multiple factors.
In addition to royalties, Acrux expects the 2013 calendar year net sales to trigger the first sales milestone payment of US$25 million from Axiron partner Eli Lilly.
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