Acrux reports profit of $6.9 million

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.

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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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