Shares of Australia's Acrux surged overnight after the biotech and its Big Pharma partner Eli Lilly ($LLY) announced that the FDA had approved their new underarm testosterone lotion. The approval triggers an $87 million milestone payment for Acrux, which saw its shares jump to a record AU$3.36.
Lilly scooped up the rights to the testosterone therapy last March, promising royalty payments and an additional $195 million in potential post-approval milestones. There are several testosterone therapies available already, but Lilly--which also paid a $50 million upfront fee--is hopeful that Axiron's underarm spray delivery will be preferable to the smelly gels now in use.
"Lilly is proud to expand our focus in men's health," said David Ricks, president, Lilly USA. "The addition of Axiron to our product portfolio reinforces Lilly's commitment to provide innovative treatment options for patients."