Under-arm treatment for low sex drive gets boost

Melbourne-based Acrux has inked a deal potentially worth NZ$476 million dollars, giving US pharmaceutical giant Eli Lilly the right to sell its first-of-a-kind underarm sex-drive testosterone lotion.

Under the terms of the agreement Eli Lilly will get worldwide rights to market the Axiron treatment - applied as an underarm cream - used in the treatment of testosterone deficiency in men over 45 years old.

Results of a clinical trial released in September showed Axiron brought testosterone levels to normal in 84 per cent of men after four months, Bloomberg reported. Low testosterone levels have been linked to a low sex drive.

The new product may become a rival for the Viagra pill, a global blockbuster drug, made by Eli Lilly's rival Pfizer. Eli Lilly, which already makes a competing drug for Viagra named Cialis, said it plans to expand its range of men's health products.

Acrux will get an upfront payment of US$50m (NZ$71m) plus the US$87m (NZ$124m) in profits once the US Food and Drug Administration approves the application to commercialise Axiron.

The Melbourne company will then be eligible to receive US$195m if the drug is successfully put on the market. At the moment, it is not available for purchase anywhere.

Lilly will also pay US$3 million for Acrux's manufacturing assets.

Additional royalties paid to Acrux under confidential terms of the deal could eventually total more than the US$335 million outlined in the milestone payments, the company said.

Shares of Acrux rose as much as 9 per cent to a record $2.60 in morning trade on the Australian Securities Exchange, valuing the company at about A$400 million.

Acrux chief executive Richard Treagus said the market for testosterone hormone replacement, currently worth more than US$1 billion, is growing at about 20 per cent a year.

"You've clearly got an aging population all around the world," said Dr Tragus. "There is far greater awareness around men's health in general," he said. "It's being spoken about more readily."

According to Acrux, lowered testosterone affects 39 per cent of men over 45, with symptoms including decreased body mass and muscle strength, lowered libido and "erectile quality", thinning body hair, and decreased bone mineral density. Only about 10 per cent of those affected get help, the company said.

"Lilly hopes to leverage our experience in men's health to advance both the science and clinical outcomes for men with low testosterone," said president of Lilly's Bio-Medicines Bryce Carmine, in the ASX statement.

"Axiron has the potential to be the first testosterone solution to be applied via an underarm applicator, for patients who have testosterone deficiency."

- © Fairfax NZ News