From Wilson HTM
Lilly’s 2Q results overnight confirmed a better quarter for testosterone prescribing, with AXIRON scripts recording pleasing quarter-on-quarter growth. Eli Lilly has also taken a new price increase, which has improved the FY17-18 outlook for royalties and dividends. Acrux has remained very active on its development programs, with an attractive portfolio of US generic transdermal projects now in hand. Some of Acrux’s higher value programs (eg onychomycosis) may also be nearing the point of nominating lead formulations to take into pre-clinical and clinical studies. We expect the tax-exempt nature of Acrux’s 7.2% dividend yield to support the share price while the company builds out its next phase of growth. Maintain SPECULATIVE BUY.
FY2016 EPS estimate is 0.09
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