The Acrux Limited (ASX: ACR) share price has continued to slip today, dropping 2.6% to 18.5 cents. That comes off the back of a 30.2% landslide on Wednesday, which saw the shares drop from 26.5 cents to 19 cents.
Acrux is a small company with a market capitalisation of around $31 million. The company develops and commercialises pharmaceutical products with a particular focus on Axiron for the treatment of testosterone deficiency.
But therein lies the issue. In an announcement to the ASX on Wednesday, the company said that Acrux and its big pharma partner Eli Lilly have mutually agreed to terminate their licensing agreement for Axiron, casting further doubts regarding the future of the treatment.
Motley Fool writer Tom Richardson wrote about that update in greater depth yesterday, which you can read here.
The Acrux share price has shed more than half its value over the past 12 months, and 94% over the past five years. Acrux appears to be a very risky small-cap stock, and one that long-term investors may want to ignore. Investors may want to take a look at alternatives such as Nanosonics Ltd. (ASX: NAN) instead.
