Acrux (ASX: ACR) has been advised by global pharmaceutical company Eli Lilly that its Axiron androgen deficiency treatment has made net sales of US$47 million for the quarter ended 30 June 2013.
This is up from the US$37 million in sales in the previous quarter and brings total sales for the 2013 financial year up to US$124 million.
Acrux will receive royalties of $14 million from the sales of Axiron for the 2013 financial year, up from the $6 million it received in the previous year.
It expects the average royalty percentage of net sales to increase in the year ending 30 June 2014.
In addition, the company will receive a milestone payment of US$25 million in March 2014 if the worldwide net sales of Axiron in the 2013 calendar year exceed US$100 million.
This appears likely as net sales in the first half of the calendar year have already hit US$84 million.
Acrux was formed in 19987 to develop and commercialise an invention from the Victorian College of Pharmacy (Monash University).
Its Axiron androgen replacement therapy for confirmed testosterone deficiency in males is being marketed by Eli Lilly, a US$59.2 billion market cap that has exclusive worldwide rights to commercialise the treatment under the terms of a collaboration agreement made in 2010.
This was valued at US$335 million in potential milestone payments plus royalties on future global sales.
Axiron is currently available in the U.S., Australia and Canada.
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