The Acrux Limited (ASX: ACR) share price has taken off this morning, bolting out of the gates to be up by as much as 62.96% in early trade. At the time of writing, Acrux shares are still sitting 40.74% higher at 19 cents per share, taking its current market capitalisation to around $32 million.
Acrux is an ASX pharmaceutical share dedicated to developing and commercialising topical pharmaceuticals. The company currently has 3 pharmaceutical products approved and marketed, along with a portfolio of generic topical products in development. It was established in 1998 and its operations extend to the US and Europe.
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Why is the Acrux share price shooting higher?
This morning, Acrux revealed it has entered into an exclusive sales, marketing and distribution agreement with US-based private company TruPharma.
According to TruPharma's website, "TruPharma has a proven track record of building niche product portfolios and getting difficult products FDA-approved and into the market".
Subject to approval by the US Food and Drug Administration (FDA), TruPharma will be responsible for the commercialisation of 6 existing products from the Acrux pipeline. This includes the sponsorship and management of each FDA application, management of commercial manufacturing, marketing and distribution of each product.
The 6 products are at various stages of development and have not been lodged with the FDA.
In turn, Acrux and TruPharma will share the gross profits generated from the sales of the products. Unless otherwise agreed, the agreement for each product will have a 10-year term from launch.
Commenting on today's update, CEO and managing director, Michael Kotsanis, said:
"We are excited to enter into this agreement with TruPharma and we look forward to developing a long-lasting relationship between the two companies. The agreement marks a significant step forward in achieving Acrux's transition into the generics market."
