Another day, another biotech winner.
The Acrux Ltd [ASX:ACR] share price is up 33.33% at time of writing. Surging on the back of confirmation of a new deal in the US.
They’ve joined forces with private company TruPharma. Entering into an exclusive marketing and distribution agreement for six products.
A major win for this tiny yet promising firm.
Big deal, few details
Acrux’s specialty is making topical products. The kind that are generally applied via the skin.
However, whether these six products referenced in the deal are topical or not is unclear. In fact, Acrux was very scant on details.
All we know is that they will be generic products — meaning they shouldn’t need to go through any clinical testing.
However, they will need to be approved by the FDA still.
That may have to wait a little while before that happens though.
As Acrux notes, the products are at various stages of development still. Meaning they have likely yet to finalise all the finer points. Which is likely why they were averse to disclose any details today.
Nevertheless, the fact that TruPharma is backing them regardless is a great sign. It shows a commitment that could allude to bigger and better things. At least, that’s certainly what investors will be hoping for.
When it comes to their bottom line, it is certainly a step in the right direction. As CEO Michael Kotsanis notes:
‘We are excited to enter into this agreement with TruPharma and we look forward to developing a long-lasting relationship between the two companies.
‘The agreement marks a significant step forward in achieving Acrux’s transition into the generic markets.’
We’ll just have to wait and see how this new relationship pans out.
Big-time biotech bets
In the grand scheme of things, Acrux is yet another biotech making waves lately.
As a sector, biotechs are lighting up markets around the world. Clearly influenced by the heightened awareness of healthcare during the pandemic.
In the US for instance, we’ve seen select NASDAQ stocks soar. Companies that are desperately working to find a vaccine for COVID-19.
It is without a doubt one of the hottest sectors around right now.
Which is precisely why we’ve been talking about it all week in Money Morning.
There are big things on the horizon for the biotech and healthcare industries. Opportunities that any investor should be keeping a close eye on. Especially those with an appetite for riskier, but potentially more lucrative stocks.
If that sounds like something you’re interested in, then make sure you’re in the know.
For Money Morning