Acrux Limited (ASX:ACR) has provided further details regarding its previously announced licensing of Lenzetto® for the Australian market, an agreement valued at up to AUD 5.4 million in milestone payments. Acrux Limited is a specialty pharma company with a successful track record of developing and commercialising a pipeline of topically applied pharmaceutical products. Drawing on 25 years of experience, Acrux has successfully marketed a number of products worldwide through licensees, with emphasis on the United States.
The update specifies the structure of the milestone payments Acrux will receive. The initial payment will be an upfront signing milestone, which is set to become due 14 days following the execution of the amendment to the licensing agreement. This ensures an early inflow of funds as the deal progresses.
The second milestone is regulatory-focused, becoming receivable once marketing authorisation for Lenzetto® is granted by the Therapeutic Goods Authority (TGA) in the Australian territory. It has also been confirmed that Gedeon Richter Plc will be responsible for overseeing the registration process of Lenzetto® in Australia. The third and final milestone is commercial, triggered by the earlier of two conditions: either the achievement of a specified cumulative sales target for the product, or the second anniversary following the product’s official launch in the market. This structured payment schedule provides clarity on the financial progression of the agreement for Acrux.
