Acrux Raises $3.99M, Reports $2.24M Operating Cash Outflow Amid Product Launch Surge

Strong Product Launches Fuel Revenue Momentum

Specialty topical pharmaceutical developer Acrux Limited (ASX:ACR) has reported encouraging progress in its March 2025 quarterly activities, driven by the commercial traction of new product launches. The December 2024 debut of Nitroglycerin 0.4% Ointment and the January 2025 extension of the Dapsone 5% Gel range with a 90-gram pack size have both contributed to accelerating product-based revenue growth. This momentum is expected to translate into a significant increase in profit share income for the March quarter, with receipts anticipated in May.

Licensees have reported favourable initial launch volumes and pricing for Nitroglycerin 0.4% Ointment, alongside expanding customer uptake for Dapsone 5% Gel following the range completion. These developments suggest growing market penetration and an increasing share within their respective segments. Acrux is also preparing for the imminent launch of Dapsone 7.5% Gel in the United States, further broadening its commercial portfolio.

Capital Raising and Financing Strengthen Balance Sheet

In December 2024, Acrux successfully completed a placement to sophisticated and professional investors, complemented by a Share Purchase Plan to existing shareholders, collectively raising $3.989 million before costs. Attaching options exercisable at 5.25 cents until February 2027 were issued to eligible participants, providing potential future capital upside.

Additionally, in April 2025, Acrux secured a $1.729 million short-term loan from Radium Capital, representing approximately 80% of the estimated FY25 Research and Development Tax Incentive (RDTI) claimable for expenditure through February. This loan, carrying an annualised interest rate of 16%, is repayable upon receipt of the RDTI rebate later in the year, and the company retains the option to draw further funds under this facility based on future eligible R&D spend.

Cash Flow and Operational Outlook

The March quarter saw net cash used in operating activities of $2.237 million, primarily driven by $0.755 million in external R&D expenditure and $1.151 million in staff costs. Despite this outflow, Acrux ended the quarter with $1.036 million in cash and cash equivalents. The company’s management remains confident in its ability to sustain operations, supported by the recent capital raise and RDTI-backed financing.

Looking ahead, the company anticipates that the improved sales volumes reported by licensees for Nitroglycerin 0.4% Ointment and Dapsone 5% Gel will result in materially higher profit share receipts in the June quarter. These inflows, combined with ongoing product launches and a diversified portfolio including topical generics such as Prilocaine 2.5% and Lidocaine 2.5% Cream and Evamist®, underpin Acrux’s strategy to build sustainable and growing revenue streams.

Strategic Implications

CEO Michael Kotsanis highlighted the significance of these product launches as foundational steps toward expanding Acrux’s commercial footprint and supporting future product development ambitions. The company’s approach of leveraging its technical expertise and commercial partnerships appears to be gaining traction, positioning it well within the competitive specialty topical pharmaceuticals market.

However, the relatively tight cash runway, estimated at approximately half a quarter based on current operating cash flows, means that continued execution on sales growth and capital management will be critical in the near term. The company’s ability to convert product launch momentum into consistent cash inflows will be closely watched by investors.