Guess which ASX healthcare stock is rocketing 110% on US product launch

Shareholders of this stock are smiling on Wednesday. Why is it rocketing?

| More on:
Shot of a young scientist using a digital tablet while working in a lab.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Acrux Ltd (ASX: ACR) shares are avoiding the market weakness and rocketing higher on Wednesday.

In morning trade, the ASX healthcare stock was up as much as 110% to 9.9 cents.

To put that into context, a $10,000 investment yesterday afternoon would have grown to be worth $21,000 in less than a day.

The topical pharmaceuticals products developer's shares have eased back a touch since then but remain up 70% to 8 cents at the time of writing.

Why is this ASX healthcare stock rocketing?

Investors have been scrambling to buy the company's shares this morning after it announced the launch of a new product in the United States market.

According to the release, Acrux and its partner TruPharma have launched a generic version of Dapsone 5% Gel.

Dapsone 5% Gel is a prescription medicine which is used on skin (topical) to treat acne vulgaris. Annual market sales for Dapsone 5% Gel products for the 12 months ending October 2023 exceeded US$15 million according to data from IQVIA.

The ASX healthcare stock's CEO and managing director, Michael Kotsanis, was pleased with the news. He said:

We are excited to partner with TruPharma to launch this topical prescription product in the United States. This is another product from the Acrux pipeline that is being commercialised. We look forward to announcing additional regulatory approvals and launches in the future.

What else is in the pipeline?

As mentioned above, the company is working towards additional regulatory approvals and launches.

This includes its Nitroglycerin 0.4% Ointment, which was accepted for review by the FDA in July 2023. This product treats moderate to severe pain associated with chronic anal fissure and has an annual addressable market of US$21.6 million according to IQVIA.

Another product in the pipeline is a generic version of cold sore treatment Acyclovir Cream, 5%. The reference listed drug for this treatment is Zovirax Cream, 5%, which is marketed by Bausch Health in the United States. The annual addressable market for the product exceeds US$29 million according to IQVIA data.

In total, it currently has three products under review by the FDA and seven products in development. But management isn't resting on its laurels. A further two topical generic projects have been identified for commencement in 2024 and thereafter two new topical generic projects are intended to be added each year.

Despite today's impressive gain, the ASX healthcare stock is only up 33% since this time last year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

A senior pharmacist talks to a customer at the counter in a shop
Healthcare Shares

Is it too late to buy Sigma shares to cash in on the Chemist Warehouse deal?

Can investors still make healthy returns with this stock?

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Why the Mesoblast share price is diving 18% after an FDA win

Investors are sending the Mesoblast share price tumbling on Friday. But why?

Read more »

A happy doctor in a white coat dancing due to his excitement over the EBOS acquisition
Healthcare Shares

Mesoblast share price rockets 30% on big US FDA news

Big news is giving this biotech a huge lift on Thursday.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

Guess which ASX healthcare stock is jumping 12% on Wednesday

This shares is rocketing this morning. But why? Let's find out.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Healthcare Shares

Here is the dividend forecast to 2029 for CSL shares

Can this blue-chip giant provide healthy dividend income?

Read more »

a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.
Healthcare Shares

The best ASX 200 healthcare stocks to buy in 2025

These shares could give your portfolio a healthy boost next year according to Bell Potter.

Read more »

In the lab at work, the mature adult woman and young adult man smile as they review the results of their successful experimentation.
Healthcare Shares

ASX 300 healthcare stock lifts off on promising new results

Up 28% in a year, the ASX healthcare stock is leaping higher on Thursday.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

If you'd invested $5,000 in this ASX 300 healthcare stock a year ago, you'd now have $30,000!

This stock has made millions for investors over just a few months.

Read more »