In morning trade, the ASX healthcare stock was up as much as 110% to 9.9 cents.

To put that into context, a $10,000 investment yesterday afternoon would have grown to be worth $21,000 in less than a day.

The topical pharmaceuticals products developer's shares have eased back a touch since then but remain up 70% to 8 cents at the time of writing.

Why is this ASX healthcare stock rocketing?

Investors have been scrambling to buy the company's shares this morning after it announced the launch of a new product in the United States market.

According to the release, Acrux and its partner TruPharma have launched a generic version of Dapsone 5% Gel.

Dapsone 5% Gel is a prescription medicine which is used on skin (topical) to treat acne vulgaris. Annual market sales for Dapsone 5% Gel products for the 12 months ending October 2023 exceeded US$15 million according to data from IQVIA.

The ASX healthcare stock's CEO and managing director, Michael Kotsanis, was pleased with the news. He said:

We are excited to partner with TruPharma to launch this topical prescription product in the United States. This is another product from the Acrux pipeline that is being commercialised. We look forward to announcing additional regulatory approvals and launches in the future.

What else is in the pipeline?

As mentioned above, the company is working towards additional regulatory approvals and launches.

This includes its Nitroglycerin 0.4% Ointment, which was accepted for review by the FDA in July 2023. This product treats moderate to severe pain associated with chronic anal fissure and has an annual addressable market of US$21.6 million according to IQVIA.

Another product in the pipeline is a generic version of cold sore treatment Acyclovir Cream, 5%. The reference listed drug for this treatment is Zovirax Cream, 5%, which is marketed by Bausch Health in the United States. The annual addressable market for the product exceeds US$29 million according to IQVIA data.

In total, it currently has three products under review by the FDA and seven products in development. But management isn't resting on its laurels. A further two topical generic projects have been identified for commencement in 2024 and thereafter two new topical generic projects are intended to be added each year.

Despite today's impressive gain, the ASX healthcare stock is only up 33% since this time last year.

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In morning trade, the pharmaceutical company's shares are up a massive 39% to 16 cents.

Why is the Acrux share price rocketing higher?

The catalyst for the rise in the Acrux share price this morning has been the release of a very positive update.

According to the release, the US Food and Drug Administration (FDA) has granted approval of the company's generic version of Jublia (efinaconazole) topical solution.

Jublia is an FDA-approved prescription topical solution that is applied on, around, and under the toenail. It reaches the site of onychomycosis to fight the fungus that lives beneath the nail. Acrux notes that Jublia sales currently exceed US$217 million per year in the United States.

This has been a lengthy process for Acrux. The company first submitted an abbreviated new drug application (ANDA) to seek approval from the FDA in June 2018. It has also been through a patent dispute, which has since been settled.

Positively, this is the company's second generic product that has been approved by the FDA this year. In January, Acrux was given approval for a generic version of Perrigo's Testosterone Topical Solution. This product has a US$25 million market opportunity in the United States at present.

What now?

Following the receipt of approval from the FDA, Acrux will progress licensing negotiations with a commercial licensee to commercialise the product. This will be in accordance with the terms of the patent settlement agreement. When launched, Acrux's product will provide a lower cost alternative to Jublia for patients in the United States.

Despite today's impressive gain, it is worth noting that the Acrux share price is still trading slightly lower year to date. Shareholders will no doubt be hoping it is onwards and upwards from here for its shares.

The post Why the Acrux (ASX:ACR) share price is rocketing 39% higher today appeared first on The Motley Fool Australia.

Acrux shares closed at 16 cents a share yesterday but opened at 28 cents a share this morning before soaring all the way up to a high of 32 cents soon after. Even though Acrux has somewhat cooled off since, these new heights represent a 52-week high for the company.

So who is Acrux? And why are Acrux shares so convincingly on the march today?

An introduction

Acrux is a pharmaceutical company that describes itself as "dedicated to developing and commercialising topical pharmaceuticals". It was incorporated in 1998. Ever since, it has developed and commercialised a number of topically applied pharmaceutical products in the US and Europe.

Today, Acrux aims to develop a "range of topical and dermatological generic products for the US market". The company has three products approved for sale in the US, as well as a portfolio of topical products in development.

However, the company has had something of a rough trot over the past few years. Acrux no longer markets its flagship product Axiron (a testosterone replacement therapy) in the US after it lost patent protection. It withdrew it from sale back in 2017 due to competition from generic versions of this drug. It is still marketed outside the US, however. That is possibly why Acrux shares are, to this day, down 69% from the share price highs we saw back in 2016.

Even so, today Acrux has 14 generic products in its pipeline and has three products that have been submitted to the US Food and Drug Administration (FDA) for review. It also has an Evamist estradiol product, used in the treatment of menopause, available in the US market.

Why is the Acrux share price going gangbusters today?

Today's extraordinary performance in the Acrux share price can largely be attributed to a market release the company announced this morning just before open. In this release, Acrux informed investors that the FDA has approved a generic testosterone product. This product is based on Perrigo's Testosterone Topical Solution, which has a concentration of 30mg/1.5mL.

This news comes less than a week after Acrux announced the commencement of a new share purchase plan for existing retail shareholders. This plan was announced on 8 January and will run until 29 January. Shareholders can subscribe for up to $30,000 in new Acrux shares for a price of 15.7 cents a share.

But turning back to the FDA approval, the company had reportedly submitted an application for this product back in August 2018 that is a "generic equivalent" to the Perrigo product. Acrux is now able to manufacture and market this drug. The company was keen to point out that the Perrigo's product that Acrux's generic product mimics generated sales that "exceeded US$25 million" in the 12 months to September 2020.

Acrux had already entered into an exclusive sales, marketing and distribution agreement with another company – Dash Pharmaceuticals. Dash will apparently be responsible for "the commercialisation of the product in the United States". This will include the "coordination of commercial manufacturing and management of marketing and distribution".

Acrux CEO and managing director Michael Kotsanis had this to say on this news:

FDA approval is a major milestone for Acrux and its generic strategy. It is a testament to the hard work and dedication of the product development and regulatory team. We are excited to partner with Dash Pharmaceuticals to bring this product to market in the current financial year.

At the time of writing, the Acrux share price is sitting at 22 cents per share, giving the company a market capitalisation of $34.81 million.

The post ASX stock of the day: Acrux (ASX:ACR) shares soar 36% on FDA approval appeared first on The Motley Fool Australia.

Acrux is an ASX pharmaceutical share dedicated to developing and commercialising topical pharmaceuticals. The company currently has 3 pharmaceutical products approved and marketed, along with a portfolio of generic topical products in development. It was established in 1998 and its operations extend to the US and Europe.

Why is the Acrux share price shooting higher?

This morning, Acrux revealed it has entered into an exclusive sales, marketing and distribution agreement with US-based private company TruPharma. 

According to TruPharma's website, "TruPharma has a proven track record of building niche product portfolios and getting difficult products FDA-approved and into the market".

Subject to approval by the US Food and Drug Administration (FDA), TruPharma will be responsible for the commercialisation of 6 existing products from the Acrux pipeline. This includes the sponsorship and management of each FDA application, management of commercial manufacturing, marketing and distribution of each product.

The 6 products are at various stages of development and have not been lodged with the FDA.

In turn, Acrux and TruPharma will share the gross profits generated from the sales of the products. Unless otherwise agreed, the agreement for each product will have a 10-year term from launch.

Commenting on today's update, CEO and managing director, Michael Kotsanis, said:

"We are excited to enter into this agreement with TruPharma and we look forward to developing a long-lasting relationship between the two companies. The agreement marks a significant step forward in achieving Acrux's transition into the generics market."

The post Why the Acrux share price skyrocketed 63% this morning appeared first on The Motley Fool Australia.

However, in some good news for shareholders it's been revealed that yesterday a Starpharma director and insider, Robert Thomas, bought 50,000 shares for $47,000 on market at 96 cents per share.

This suggests Mr. Thomas at least has faith the biotech will eventually get its VivaGel BV product approved in the U.S., although the pathway ahead now is unclear as Starpharma has admitted the FDA requires "more clinical data" prior to approval.

It appears investors are taking a sell first, ask questions later approach though as management's credibility has been hurt by the FDA rejection as many in the market believed Starpharma had the clinical data already to secure approval.

The uncertainty over the situation now is likely to keep a lid in the share price until management provides a further update or proper roadmap to approval.

Starpharma does have plenty of potential on paper at least via its drug delivery technology and products already in market and is well funded with $49.5 million cash on hand. However, whether it can translate this potential into profits remains to be seen as investors are largely reliant on the worth of management's guidance on the science as to the company's potential.

For example many biotechs in the research and development space often just end up destroying investor capital such as Admedus Ltd (ASX: AHZ), Prana Biotechnolgy Ltd (ASX: PBT), Mesoblast limited (ASX: MSB) and Acrux Limited (ASX: ACR).

In fact as far as I can remember Sirtex Medical is the only start-up type biotech or healthcare business to list and go on to become a roaring success by posting big profits for investors. So there can be exceptions to the rule, but they are unusual.

The post Insider share buying can't stop the Starpharma share price sliding again today appeared first on The Motley Fool Australia.

• Revenue of US$11.6 million, compared to US$1.2 million in prior corresponding quarter (pcq)
• Loss after tax increased by US$12.5m compared to pcq, in part due to US$10.1 million non-cash adjustment made in pcq
• Total loss of US$19.5 million recorded for quarter
• Finance costs for the quarter rose to US$2.6 million
• Research and development costs for the quarter were US$18.5 million
• Phase 3 trails to treat chronic lower back pain & heart failure ongoing
• Completed deal with Tasly to establish cardiovascular partnership in China, which saw it receive US$40 million
• Has pro forma cash on hand of US$95.1 million, including funds from Tasly

This quarter is reasonably standard for the company in that it burned through a lot of cash conducting multiple clinical trials to try and commercialise its products.

The top line revenue result looks impressive at first glance, but of the US$11.6 million received only US$1 million was from the result of commercialised products. In fact US$10 million of it was received as "milestone revenue" in relation to it agreeing a partnership with Chinese stem cell and healthcare business Tasly.

So far in total Mesoblast has two commercial products approved in Japan and Europe, with three more product candidates in US phase 3 trials. Unfortunately, it's approved products have not taken in much in the way of revenue as yet.

In fact Mesoblast claims it has the potential to disrupt large amounts of the traditional healthcare markets thanks to its stem cell regeneration treatments, but so far it has delivered little.

It's also an example of the high costs and risks associated with the biotech space where companies can dramatically plunge after just a single announcement. The likes of Acrux Limited (ASX: ACR) and ResApp Health Ltd (ASX: RAP) are others in the new healthcare space that have disappointed investors.

The post Are Mesoblast shares ready to shoot higher? appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they are starting the week in the red:

The A2 Milk Company Ltd (ASX: A2M) share price has tumbled 4% lower to $10.86 after the infant formula and dairy company's CEO sold all her ordinary shares after just over two months at the helm. According to the change of director's interest notice, last week Ms Hrdlicka offloaded a total of 357,232 shares through on-market trades on Tuesday and Thursday for an average price of $11.18 per share or a total of $3,995,139.80.

The Acrux Limited (ASX: ACR) share price has plunged 20% lower to 22 cents after the pharmaceutical company announced that it has been notified of a patent challenge by one of the world's leading pharmaceutical giants. Valeant Pharmaceuticals North America has initiated patent litigation against Acrux and 13 other generic companies in relation to their generic version of Jublia topical solution, 10%. Last month Acrux submitted the first-to-file application for the generic version of Jublia, making it eligible for 180 days of generic exclusivity.

The Lynas Corporation Ltd (ASX: LYC) share price has crashed 22% lower to $1.64 after reports that its Malaysian operations could be under review by the local government. Reports in The Star claim that Fuziah Salleh has been appointed as the chairman of a Lynas evaluation committee and will evaluate the operations of the Lynas Advanced Materials plant in Gebeng over a three-month period from today. Investors appear concerned that these operations could be closed down.

The Sims Metal Management Ltd (ASX: SGM) share price has tumbled 10.5% lower to $11.98 after global metals and electronics recycling company released a first quarter trading update to the market. According to the release, due to the underperformance of its SA Recycling business, management expects the company to achieve underlying earnings before interest and tax between $58 million and $63 million for the first quarter of FY 2019. This will be higher the prior corresponding period, but lower than the fourth quarter of FY 2018.

The post Why these 4 ASX shares have started the week in the red appeared first on The Motley Fool Australia.

At lunch the pharmaceutical company's shares are down a sizeable 18% to 22.5 cents.

Why are Acrux shares plunging lower today?

This morning Acrux advised that it has been notified of a patent challenge by one of the world's leading pharmaceutical giants.

According to the release, Valeant Pharmaceuticals North America LLC has initiated patent litigation against Acrux and 13 other generic companies in the U.S. District Court for the District of New Jersey.

The litigation relates to Paragraph IV Abbreviated New Drug Applications for Efinaconazole Topical Solution, 10% (a generic version of Jublia topical solution, 10%), with Valeant asserting patents listed in the Orange Book for Jublia Topical Solution, 10%.

This is a bitter blow for Acrux as last month it submitted the first-to-file application for the generic version of Jublia, making it eligible for 180 days of generic exclusivity.

This application was accepted for review and the company saw a major opportunity for the generic version of the antifungal drug indicated for the topical treatment of infections of the nail. Jublia's US sales are estimated to exceed US$280 million per year currently.

However, at the time of the application, the company advised that Valeant had 45 days to file a patent litigation suit asserting patents listed in the Orange Book. So this move is not unexpected and the selloff today could be a bit of an overreaction.

Should you buy the dip?

It is also worth noting that the Jublia generic product is just one of 13 topical generic products that the company has in its development pipeline. This pipeline of products has an estimated addressable market of over US$1.4 billion, meaning there's still a significant opportunity for the company outside Jublia.

However, while I have been impressed at the company's transformation this year, I would suggest investors wait to see how things develop over the next 12 months before considering an investment.

In the meantime, I think CSL Limited (ASX: CSL) and Mayne Pharma Group Ltd (ASX: MYX) could be well worth a look after recent pullbacks.

The post Acrux Limited (ASX:ACR) shares crash lower on patent litigation appeared first on The Motley Fool Australia.

In fact, some shares have even managed to climb to 52-week highs of better. Is it too late to buy these high-flying shares?

The Acrux Limited (ASX: ACR) share price rocketed 34% higher to a 52-week high of 31 cents today. This morning the company released an updated investor presentation highlighting its shift from being a one-trick pony to a pharmaceutical company with a diverse portfolio of 13 topical generic products with an addressable market of over US$1.4 billion. I think Acrux's transformation has been very positive, however, I'd like to see how its sales fare over the next 12 months before considering an investment.

The ResApp Health Ltd (ASX: RAP) share price hit a 52-week high of 28 cents on Friday before being placed in a trading halt before the market opened on Monday. The digital healthcare company's shares have been on fire this year thanks to a series of positive developments related to its Smartcough-C-2 and paediatric studies. Management appears to have seized on this strong share price rally by launching a capital raising this week. Although there has been no official word out of the company, the word on the street is that the company is aiming to raise $5 million at 22 cents per share. Surprisingly, just last week ResApp released a company update and stated that it was well-funded to execute its ongoing clinical strategy.

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price rose to an all-time high of $25.39 today. The investment house's shares have climbed 9.5% since this time last month despite there being no news out of it. However, with its full year results release just a matter of days away, it appears that some investors are expecting another strong result from the company. While I do think that it is a quality share to own, I would prefer to get in at a lower price. In light of this, I would suggest investors hold out in hope of post-earnings share price weakness.

The post Is it too late to buy these high-flying ASX shares? appeared first on The Motley Fool Australia.

Three at the small end of the market climbing higher today are listed below:

The Acrux Limited (ASX: ACR) share price has jumped 13% to 17.5 cents after the drug delivery company advised that it has submitted its first-to-file application for a generic version of the Jublia product, making it eligible for 180 days of generic exclusivity. Jublia is an FDA approved topical treatment of onychomycosis, also known as tinea unguium. Onychomycosis is a fungal infection of the nail that can result in thickening and yellowing of the nail and ultimately the separation from the nail bed. Annual sales of Jublia exceeded US$280 million for the 12 months ended March 2018.

The Money3 Corporation Limited (ASX: MNY) share price has climbed 3% to $2.08 after the financial services company upgraded its earnings guidance and dividend outlook. Management expects to report a full-year net profit after tax of approximately $32 million in FY 2018. As a result, it intends to raise its final dividend to 4.5 cents per share, bringing its full-year dividend to 9 cents per share. This means its shares provide a fully franked 4.3% yield, which I think makes it a great option for income investors.

The Resapp Health Ltd (ASX: RAP) share price has pushed higher for a second day in a row and is up a further 3% to 17 cents. Yesterday the healthcare technology company advised that its Smartcough-C-2 study enrolment was complete in the United States, whereas today its Breathe Easy study in Australia has completed its enrolment. Both sets of results are expected within the next couple of months. It certainly will be an exciting time for shareholders if the results of these studies come back favourably. Though, it is worth remembering that when its previous study failed the share price plunged significantly.

The post These 3 small caps are storming higher today appeared first on The Motley Fool Australia.

Four shares which haven't unfortunately been able to follow the market higher today are listed below. Here's why they have dropped lower:

The Acrux Limited (ASX: ACR) share price has fallen 3% to 16 cents following the release of its quarterly Axiron sales update. According to the release, Eli Lilly and Company reported global Axiron net sales of US$7.5 million for the December quarter. This compares to sales of US$39.9 million in the prior corresponding period. Eli Lilly terminated its licensing agreement for Axiron late last year following the loss of its patent and concerns over whether testosterone products could lead to an increased risk of heart attack or stroke.

The Godfreys Group Ltd (ASX: GFY) share price has plunged almost 12% to 34 cents after the retailer provided the market with a disappointing trading update. Due to a non-cash impairment of goodwill and intangibles, the company expects to post a first-half net loss after tax of around $59 million. The company also advised that like for like sales for the half-year were 6.2% lower than the prior corresponding period. Considering its poor financial performance, high debt levels, and lack of relevance with consumers, I fear this is a retailer in grave danger of going under.

The Lynas Corporation Ltd (ASX: LYC) share price has fallen over 3% to $2.09. After the market closed on Wednesday management advised that bondholders have converted a further portion of their convertible bonds from debt into equity. This reduced its JARE Facility down to US$170 million, but added a further 13.3 million shares to the registry.

The Virgin Australia Holdings Ltd (ASX: VAH) share price has tumbled 7.5% to 25 cents. I suspect that today's decline is likely to be related to a broker note out of Credit Suisse. That note revealed that the broker has downgraded the airline from an outperform rating to neutral with a reduced price target of 25 cents.

The post Why these 4 ASX shares have dropped lower appeared first on The Motley Fool Australia.

Just ask Webjet Limited (ASX: WEB) and MACA Limited (ASX: MLD) shareholders.

Who is Joel Greenblatt?

Joel Greenblatt is a famous — and hugely successful — US investment manager. His hedge fund, Gotham Capital, is believed to have delivered an average yearly return of 40% over the years 1985 to 2006. That turns $10,000 into over $8 million.

Greenblatt authored the funny, easy-to-read and simple book called The Little Book That Beats the Market.

So what?

In the book, Greenblatt details a simple "Magic Formula" for sharemarket success, which requires investors to buy shares in quality companies when they're cheap.

Sounds simple, right?

Yes, it's simple. But it is not easy.

Why?

Most people are too scared to hold some of the shares that the formula tells us to buy.

Returns in Action

Going on three years ago, my colleague Matt Joass, CFA, wrote this article and provided a list of 30 shares which would have been produced by the "Magic Formula" on the ASX:

In 2014, the mining sector was on its knees and mining services companies were being thrown out. China's slowdown was going to wreak havoc on these companies, or so we thought.

Based purely on share prices (no dividends), the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up 10.4% since that time.

Although it is not exactly correct I excluded the companies from Matt's list that were smaller than $100 million in market capitalisation. I also excluded Premiere Eastern Energy (ASX: PEZ) because it had a share price of $0 according to the table.

The result?

Drum roll, please…

Adjusting for takeovers and mergers, the average return of these $100m+ companies in the Magic Formula was almost 51%. In other words, almost five times the return of the market, excluding dividends.

I think you will admit, that's a pretty handy return over three years.

Foolish Takeaway

I'm always sceptical (skeptical?) of quantitative or 'formulaic' investing strategies. However, the Magic Formula is simple, logical and well supported by research. If nothing else it would provide a useful starting point for investment ideas.

As a bonus, the book is easy-to-read and short, so you could get the low-down on the formula for less than $20 and a weekend of reading!

The post Is this the "Magic Formula" to investing in ASX shares? appeared first on The Motley Fool Australia.

Unfortunately not all shares on the market were able to follow the market higher. Here's why these four shares sank lower on Monday:

The Acrux Limited (ASX: ACR) share price continued to slide lower, this time by 3% to a multi-year low of 17 cents. Investors continue to head to the exits in their droves following the drug delivery company's shock announcement that its licensing agreement with Eli Lilly has been terminated.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price tumbled over 4% to $11.09. On Monday the medical device producer issued 113,000 new shares due to its share option plan and the issue of performance share rights. These shares were issued at a significant discount to the current share price and may have been quickly offloaded, putting temporary pressure on its share price.

The Liquefied Natural Gas Ltd (ASX: LNG) share price sank 11% to 45 cents following the release of its annual report. The report wasn't the most upbeat of reports and saw management explain how natural gas oversupply was negatively impacting the business. I would stay clear of the company's shares until there are improvements in supply and demand.

The OceanaGold Corporation (ASX: OGC) share price fell 6% to $3.70. Almost all Australian gold miners were sold off yesterday as investors returned to risk assets. The spot gold price is currently fetching US$1,306 an ounce, its lowest level this month. Unless tensions flare up in North Korea, I expect further declines for gold in the coming weeks.

The post Why these 4 ASX shares sank lower on Monday appeared first on The Motley Fool Australia.

Three declines which caught my eye are listed below. Is it time to snap up these shares on the cheap?

The Acrux Limited (ASX: ACR) share price fell to an all-time low of 17 cents during trade on Friday. The drug development company's shares have come under significant pressure this month after it announced that Eli Lilly would no longer be licensing its Axiron product. As this product makes up almost all of the company's revenue, there are big questions over its future. In light of this, I would suggest that investors continue to avoid Acrux.

The Monash IVF Group Ltd (ASX: MVF) share price tumbled to a two-year low of $1.42 on Friday. Investors appear to be increasingly negative on the fertility specialists prospects following the emergence of a low-cost competitor and the departure of Dr Lynn Burmeister. Although the latter is not expected to impact Monash IVF greatly this year, management has warned that there is potential for a high single-digit percentage decline in net profit after tax in FY 2019 when her non-compete period expires. Whilst its shares do look cheap now, I would hold off an investment until its performance shows signs of improvement.

The Myer Holdings Ltd (ASX: MYR) share price hit an all-time low of 69 cents last week following the release of its full-year results. Although its shares climbed higher initially, they soon tumbled lower after brokers ran their rulers over its financials. On Friday analysts at Credit Suisse downgraded the department store operator to an underperform rating and lowered its price target to 67 cents. Due to changing consumer habits and the potential arrival of Amazon, I think investors would be better off looking for other options in the retail sector.

The post Are these beaten down shares in the bargain bin? appeared first on The Motley Fool Australia.

Acrux is a small company with a market capitalisation of around $31 million. The company develops and commercialises pharmaceutical products with a particular focus on Axiron for the treatment of testosterone deficiency.

But therein lies the issue. In an announcement to the ASX on Wednesday, the company said that Acrux and its big pharma partner Eli Lilly have mutually agreed to terminate their licensing agreement for Axiron, casting further doubts regarding the future of the treatment.

Motley Fool writer Tom Richardson wrote about that update in greater depth yesterday, which you can read here.

The Acrux share price has shed more than half its value over the past 12 months, and 94% over the past five years. Acrux appears to be a very risky small-cap stock, and one that long-term investors may want to ignore. Investors may want to take a look at alternatives such as Nanosonics Ltd. (ASX: NAN) instead.

The post The Acrux Limited share price is plummeting: Here's why appeared first on The Motley Fool Australia.

Four shares that have made notable declines today are listed below. Here's why they are lower:

The Acrux Limited (ASX: ACR) share price has continued to slide lower, this time by almost 3% to 18.5 cents. On Wednesday the pharmaceutical company's shares plunged 29% after it announced the mutual termination of its licensing agreement with Eli Lilly for its Axiron drug. Unfortunately, things look very bleak for Acrux right now.

The Resolute Mining Limited (ASX: RSG) share price has fallen 3% to $1.22. The majority of Australia's gold miners have tumbled lower today after the gold price edged slightly lower. Furthermore, with Resolute's shares up almost 18% since August 28, I suspect there may be a spot of profit taking going on.

The Updater Inc (ASX: UPD) share price is down 4.5% to $1.33 after successfully completing a $50 million institutional placement at $1.25 per CDI. The funds raised will finance the acquisitions of IGC Software and Asset Controls, fund the rollout of its new insurance division, and increase its working capital in order to accelerate the sale of Business Products into additional verticals. I think Updater could be worth a look at the current share price.

The Yancoal Australia Ltd (ASX: YAL) share price has plunged 10% to 10.5 cents despite there being no news out of the coal miner. This latest gain means that Yancoal's shares have now lost almost two-thirds of their value in just the last three months. Whilst it may look cheap now, I believe there are far better options for investors in the resources sector.

The post Why these 4 ASX shares slumped lower today appeared first on The Motley Fool Australia.

Four shares which have fallen more than most today are listed below. Here's why they have sunk deep into the red:

The Acrux Limited (ASX: ACR) share price has plunged 28% to 19 cents after the drug development company advised that the licensing agreement with Eli Lilly for its Axiron testosterone drug has been terminated. I would stay clear of Acrux for the time being despite how cheap it may look.

The Catapult Group International Ltd (ASX: CAT) share price is down 8% to $1.47. Today's decline is likely to be the result of a research note out of Bell Potter this morning. According to the note, Bell Potter has downgraded Catapult to a hold rating due to concerns over its rising operating expenses. Although I do like the company and its products, I'm sitting this one out until it becomes profitable.

The Insurance Australia Group Ltd (ASX: IAG) share price has fallen 4% to $6.18. A good portion of today's decline is due to the insurance giant's shares going ex-dividend this morning. Shareholders can look forward to receiving the fully franked 20 cents per share final dividend in their bank accounts on October 9.

The Stemcell United Ltd (ASX: SCU) share price has continued its poor run and is down 13% to 4.5 cents. The medicinal cannabis hopeful has now seen its shares fall by over 35% since the release of its full-year results on August 31. That release revealed a full-year loss of $2.4 million on revenue of just $31,600.

The post Why these 4 ASX shares sank deep into the red today appeared first on The Motley Fool Australia.

The shares shed 20% to sell for just 20 cents in early trade and are now down 94% over the past five years. The company's problems have only snowballed over the period and started with the U.S. healthcare regulator the FDA demanding stricter labeling on testosterone products to warn of the potential dangers of testosterone use.

Today, Acrux's management team disclosed that since 2014 it had been advised by the FDA that it would be required to submit "a well-designed Postmarketing Requirement clinical trial to more clearly address the question of whether an increased risk of heart attack or stroke exists among users of testosterone products".

This morning its management team disclosed the deadline for submission for the trial was September 5 2017 and having failed to meet it the company is now vulnerable to regulatory action. As such Acrux will request the FDA "to withdraw its NDA (new drug application) from the US market".

Acrux has also faced problems recently after a U.S. court ruled its Axiron patent was invalid which opened it up to generic competition that has already been launched into the U.S. market.

One of the key selling points of Axiron was that it could be applied as a topical solution on the underarm, rather than less comfortable ways such as injections for example.

It seems investors might want to avoid Acrux, given the rising competition, a toughening regulatory environment, and a management team open to criticism.

If you're looking to buy healthcare shares in the small-cap at end of the market, I'd suggest taking a look at Nanosonics Ltd (ASX: NAN) or CogState Ltd (ASX: CGS) as superior alternatives.

The post Why the Acrux Limited share price is cratering today appeared first on The Motley Fool Australia.

In afternoon trade the drug development company's shares are up 7% to 31 cents.

What happened?

This morning Acrux updated the market on the sales of its Axiron drug which is licenced to pharmaceutical giant Eli Lilly.

Sales of the underarm testosterone medication fell sharply during the first three quarters of FY 2017, but have bounced back strongly in the fourth-quarter.

According to today's release, Eli Lilly reported global Axiron net sales of US$36.8 million during the quarter, up 25.6% on the prior corresponding period and 34.8% higher than in the third-quarter.

This is an impressive performance for the drug when you consider that it lost its patent protection last year, allowing generic versions to be launched.

Acrux shareholders will no doubt be relieved as well, as royalties from the drug contributed 88.5% of the company's FY 2016 sales.

The post Acrux Limited share price jumps on strong sales data appeared first on The Motley Fool Australia.

The testosterone-therapy manufacturer was once touted as the ASX's next big healthcare company as sales of its Axiron testosterone product grew strongly in North America.

However, investors have been gripped with fear over the product's future after concerns were raised that competitors may be able to launch similar generic products after its product patent was ruled "invalid" by a U.S. district court.

The compay's Axiron sales over the course of 2016 at US$145.2 million were only marginally down on 2015, although over the past year the share price has plunged 58%, almost entirely on concerns that that the company is set to face increased competition from generic competitors.

The company is still profitable and developing other products with a strong balance sheet, while it is also appealing the US District Court's decision to the higher Federal Circuit appeal court with a decision expected by Q1 FY 2018.

Acrux shares are potentially cheap at 28 cents and potentially very cheap if the company is successful in its legal challenge to have the adverse patent ruling reversed.

I would keep Acrux shares on the speculative watch list for now as there are plenty of other junior healthcare businesses that have big profits you could buy instead.

One to watch is the cheap-looking Lifehealthcare Group Ltd (ASX: LHC), while others like Paragon Care Ltd. (ASX: PGC) are paying dividends, growing profits, and appear to trade on attractive valuations.

The post Why the Acrux Limited share price has cratered in 2017 appeared first on The Motley Fool Australia.