Acrux and Eli Lily sign deal to sell testosterone solution

Acrux-EliLilly-LogoAcrux Ltd. and US-based Eli Lilly and Company have signed a license agreement. As per these Acrux will be make a testosterone solution and Eli Lily would be commercializing it. The name of the solution is Axiron.

The medicine will be used in treating men who suffer from low level of testosterone.

Under the license, Eli Lily will have the exclusive rights to sell the drug worldwide. And Acrux will receive an upfront payment of $50 million and another $3 million for transfer of manufacturing equipments.

Both the companies deal in the pharmacy business and the deal is supposed to be the biggest biotech deal signed by an Australian company. Experts say the total worth of the deal is $600 million which includes royalties.

It boils down to a value of $3.75 per Acrux share. This expert believes is worth the bet.

Meanwhile, the reviewing of the drug remains to be done by the Food and Drug Administration (FDA). It is only after a green signal from the US authority is given that the drug will be sold in the US as well as many other international markets.