Innovative drug developer Acrux (ASX: ACR) continues to head in the right direction for shareholders. The company has announced a 56% increase in revenues but due to a normalisation in taxes reported a slight decrease in net profit after tax to $6.9 million.
Highlights from the result included net sales from its key therapy Axiron which more than doubled to US$124 million with Acrux's share of royalties from sales jumping from $6 million to $14 million. Axiron is now the second largest product in the US testosterone therapy market based on share of total prescriptions. The company also provided details around a milestone payment of US$25 million due in March next year, which due to impressive sales of Axiron, it looks very likely to receive.
With cash reserves of nearly $23 million, the board has declared a final dividend of 8 cents per share – which is exempt from tax thanks to Acrux's structure as a Pooled Development Fund. Guidance was also given that the company expects to pay an interim dividend during the 2014 year upon receipt of the milestone payment.
Companies with the ability to pay a growing stream of dividends to shareholders can make a healthy addition to an investor's portfolio. Interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."
More reading
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.
