Melbourne, 5 February 2014: Acrux (ASX: ACR) had its regular bi-annual meeting with Lilly last week under the parties’ obligation to keep each other informed of their material matters relating to the manufacture, development and marketing of Axiron. As previously reported, quarterly sales of Axiron last year were:
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Total for 2013 US$37.1m US$47.1m US$40.6m US$53.9m US$178.7m
On the basis of current knowledge, continued growth is expected in net sales for calendar 2014, with successive quarters showing increased net sales compared to those achieved in the previous quarter. This should lead to the achievement of the sales threshold required to trigger the US$50 million milestone payable in early 2015.
Consistent with previous advice, Acrux will distribute cash in excess of medium term working capital requirements. Our working capital requirements remain at approximately $5 million per annum and our current cash reserves are approximately $17 million. As advised previously, Acrux will receive a US$25m milestone payment in early March. The post-tax value of the milestone is approximately $20 million at current exchange rates and will be used to fund a special dividend to shareholders. Details of the dividend will be announced with the half-year results on 20 February 2014.
Contact Ross Dobinson, Executive Chairman: 03 9691 5920
ACR Price at posting:
$1.92 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)