Acrux heading lower

About the author:

Author name:

By Scott Power

Job title:

Senior Analyst

Date posted:

18 September 2014, 10:07 AM

Sectors Covered:

Healthcare, Life Sciences

What happened 

Overnight an expert panel voted overwhelmingly for the FDA to impose strict new limitations on the testosterone industry which would tighten labels for use of products like Axiron, (which is marketed by Eli Lilly and Acrux (ACR) receives a royalty on sales). 

The panel voted 20-1 that prescribing language on the approved products should be revised to make clear they have not been shown to reverse common aging issues like low libido, fatigue and muscle loss.

The labelling change would limit the drugs' FDA-approved indication to men who have abnormally low hormone levels due to disease or injury, instead of aging.

We have seen Axiron volumes falling over recent quarters (as well as other products) - so the impact is already being felt. We expect volumes will continue to soften as advertising is reduced.

The share price will react negatively to this news today. 

What you should do

We maintain our Reduce recommendation - no reason to be here.

More information

If you are interested in finding out more, please contact your Morgans adviser or nearest Morgans office.

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