- Acrux (ACR) reaches agreement for EUR 4.10 million (A$6.41 million) buyout of future Lenzetto royalties
- Lenzetto is used to treat oestrogen deficiency symptoms in postmenopausal women
- Acrux CEO and MD Michael Kotsanis said the deal immediately strengthens the company’s balance sheet
- It gives the company working capital to invest into product development and other activities
- Acrux shares last traded up 11.4 per cent, trading at 7.8 cents at 2:01 pm AEDT
Pharmaceutical company Acrux (ACR) has reached an agreement for the EUR 4.10 million (A$6.41 million) buyout of future royalties for the company’s Lenzetto product.
Royalty payments from the current agreement were set to expire in 2026 with its manufacturing and distribution partner, Gedon Richter.
Acrux CEO and Managing Director Michael Kotsanis said the deal well positions the company moving forward.
“This transaction immediately strengthens Acrux’s Balance Sheet, bolstering the Company’s cash reserves and avoids any imminent requirement for the implementation of alternate capital raising strategies or dilution of existing shareholders,” he said.
“The funds will be invested in the development, registration and commercialisation of several of our products from the Acrux pipeline.”
Lenzetto was first launched by Gedeon Richter in Europe in 2016, being used to treat women with oestrogen deficiency symptoms in postmenopausal women. The product is sold in more than 40 countries by Gedeon Richter.
The buyout will give the company working capital to invest into product development and other activities, leading to the commercialisation of other products for the US market.
Acrux shares last traded up 11.4 per cent, trading at 7.8 cents at 2:01 pm AEDT.