The Indianapolis, Indiana-based company has said that it expects to incur a charge of $0.03 per share in the first quarter related to an exclusive worldwide license agreement with Acrux for the potential commercialization of Acrux's experimental underarm testosterone solution with the proposed tradename Axiron.
A new drug application for Axiron is currently under regulatory review by the FDA for the treatment of testosterone deficiency in men. Lilly will receive exclusive worldwide rights to commercialize Axiron, and Acrux will receive an upfront payment of $50 million plus $3 million on the transfer of manufacturing assets.
Acrux is also eligible for $87 million upon the issuance of marketing authorization by the FDA, and up to $195 million in potential commercialization milestones, as well as royalty payments on future global sales, if Axiron is successfully commercialized.
ACR Price at posting:
$2.23 Sentiment: LT Buy Disclosure: Held
