Healthcare products developer Acrux Ltd (ASX:ACR) has announced a deal that could potentially lead to the commercialisation of its underarm testosterone drug.
US healthcare corporation Eli Lilly has agreed to pay Acrux $50 million upfront for exclusive global rights to commercialise the drug, plus $3 million on the transfer of manufacturing assets.
Acrux is eligible for a further $87 million upon authorisation by the US Food and Drug Administration (FDA) and up to $195 million in potential commercialisation milestones.
If the drug is successfully commercialised, the company will receive royalty payments on future global sales.
The new drug, called Axiron, is currently under regulatory review by the FDA for the treatment of testosterone deficiency in men.
The company says it has the potential to be the first testosterone solution to be applied using an underarm applicator.
Acrux posted a loss of $7.72 million in fiscal 2009.