Transcription of The Stock Network Interview with Acrux (ASX:ACR), CEO John Warmbrunn
Lel Smits: Acrux has expanded its partnership with Gideon Richter, enabling the Australian launch of transdermal estradiol spray Lanzetto. The amended agreement could deliver up to $5.4 million in milestone payments tied to regulatory and sales targets over two years. Lanzetto, developed using Acrux’s Patchless patch technology, is already sold in more than 40 countries as a hormone replacement therapy treatment for menopausal symptoms linked to estrogen deficiency.
Its Australian entry also comes amid ongoing shortages of menopause hormone therapy products. CEO John Warmbrun joins me to discuss the financial significance of the deal, the opportunity in women’s health, and how Lanzetto strengthens Acrax’s long-term strategy.
John, welcome to the Stock Network.
John Warmbrunn: Oh, thank you. It’s great to be here.
Lel Smits: Pleasure to have you on, and I’m keen to hear more about the financial impact of the Lanzetto expansion.
The amended agreement could deliver Acrux up to $5.4 million in milestone payments. How important is this deal financially for you? And also, can you outline here, what does it say really about the value of Acrux’s IPM partnerships?
John Warmbrunn: Well, it’s a clear signal of the value that’s being placed on innovative products in the hormone replacement therapy space. I mean, $5.4 million in Australia implies a global value somewhere north of $250 million.
So, in conjunction with our recent placement, this means we have a clear runway for our phase three trials for female testosterone and a co-development deal. But perhaps just as importantly, it demonstrates the depth of Acrax’s heritage in hormone replacement therapy and our long-standing relationship with key players in this space, such as Gideon Richter. And our transdermal IT sits right at the centre of the value that we’re creating.
Lel Smits: Excellent. And in terms of addressing Australia’s MHT shortage, Lanzetto is expected to help ease shortages of menopause hormone therapy products in Australia. Why is this launch timely now? And also, how could it improve that treatment access for women?
John Warmbrunn: Okay, over the past few years, there’s been a real surge in interest from patients and doctors in Australia in hormone replacement therapy for menopause. And there’s a real renewed understanding of the benefits that hormone replacement therapy can bring. In fact, it’s a global phenomenon.
And that’s what’s driving the shortage or significant shortage of products in the Australian market today. We get calls all the time asking, when’s Lanzetto going to be available? So we know there’s a real and urgent need. You can also see it in the US, where there’s over 2 million women using male testosterone products that they get via compounding pharmacies or special order that says it’s just a real unmet need and demand for hormone replacement therapy.
But having Lanzetto on the Australian market is just super exciting because it means Australian women for the first time will be able to use our patchless patch technology. It’s heaps more convenient to use. No messy gels, no dealing with ugly or uncomfortable patches.
It’s a simple to use spray. It offers a precise, consistent, discreet and easy to use option. And that’s what women are looking for.
Lel Smits: Yes. And Lanzetto is already commercialised in more than 40 countries. How does the Australian expansion support Acrux’s broader women’s health ambitions? Also your future product pipeline?
John Warmbrunn: Okay, look, I think it feeds into three aspects of our women’s health program.
Firstly, it demonstrates Acrux’s long heritage and relationships. It’s those relationships that give us the confidence about the co-development pathway for our next major innovative program, female testosterone. So we’ve done this before.
Our IP is highly respected. And frankly, the feedback we’re getting from potential partners is awesome. The second reality is that Australia is at the forefront of women’s health.
And having a patchless patch technology in a leading market like Australia builds our knowledge and understanding of women’s health professionals and patients. And it’ll help us build momentum towards best practice in women health. But finally, getting feedback directly from patients will just be great.
Hearing firsthand about what works, what doesn’t work will feed directly into the product pipeline. And in particular, that we see opportunities to further develop the applicator that we’ve got.
Lel Smits: John, congratulations on the announcement and look forward to hearing those developments as they come through for Acrux.
John Warmbrunn: Great, thanks very much.
Ends