Testosterone therapy business Acrux Limited (ASX: ACR) today posted a half year profit of $7 million on total revenue of $14.2 million for the six-month period ending December 31, 2014.
Product royalties from its key Axiron product were down 5.5% on the prior corresponding period and no milestone payments were received in the period as sales failed to clear hurdles agreed with licensing partner Eli Lilly.
Average half
These numbers should not come as a surprise to investors as reported quarterly sales of its Axiron product came ahead of the half-year report. The company said it maintained market share in part thanks to the practical advantages of its product and that sales growth outside the US was continuing to gain momentum.
The company also said it awaits a further updates from the US Food and Drug Administration (FDA) as to what action it may take with regard to the regulatory environment.
Outlook
Unsurprisingly the stock has been sold off on today's announcement, although much will depend on what impact any US FDA action has on future sales of Axiron. The outlook remains cloudy, but at today's price of $1.13 the stock is back towards a level where the risk / reward trade off is attractive.
However, given the feeble nature of today's half-year presentation provided by management, I'm inclined to look elsewhere for companies that appear hungry for success.
