Acrux Posts $3M R&D Rebate and $714K Profit Share in Q1 FY26
Acrux Limited reports robust revenue growth in Q1 FY26, driven by strong profit share income from recently launched topical pharmaceuticals and a significant R&D tax rebate repayment.
- September quarter profit share income exceeds entire previous financial year
- Revenue growth led by Nitroglycerin 0.4% Ointment and Dapsone gels
- Received $3.04 million R&D Tax Incentive rebate from Australian Tax Office
- Full repayment of short-term R&D advances from Radium Capital
- Positive net operating cash flow of $1.65 million with $0.72 million cash on hand
Strong Revenue Momentum from New Product Launches
Specialty topical pharmaceuticals company Acrux Limited (ASX – ACR) has delivered a notable boost to its revenue streams in the September 2025 quarter. The company’s profit share income from licensees reached $714,000, surpassing the total profit share income received across the entire previous financial year. This surge is largely attributed to the commercial success of products launched in FY25, particularly Nitroglycerin 0.4% Ointment and Dapsone gels, which have gained significant market traction.
Nitroglycerin 0.4% Ointment, launched in December 2024, achieved more than its ‘fair share’ of the market in its second full quarter of sales, reflecting strong volume growth. Meanwhile, sales of Dapsone 7.5% and 5% gels continue to increase month-over-month, supported by recent major account wins by the licensee. These products, alongside others like Lidocaine and Prilocaine Cream and Evamist®, are expected to underpin further revenue growth in FY26.
R&D Tax Incentive Rebate Strengthens Financial Position
Acrux received a $3.04 million rebate from the Australian Tax Office for its FY25 Research & Development Tax Incentive (RDTI), a significant cash inflow that enabled the company to repay in full the short-term advances it had drawn from Radium Capital. This repayment of $2.24 million clears the company’s FY25 RDTI-related debt, improving its balance sheet and reducing financing costs.
Operating cash flow was positive at $1.65 million for the quarter, supported by $863,000 in receipts from customers and the RDTI rebate. Despite higher staff costs, largely due to final payments to the former CEO, and ongoing administration expenses, Acrux ended the quarter with $722,000 in cash and cash equivalents, positioning it well for continued operations and investment.
Strategic Outlook and Market Expansion
CEO John Warmbrunn highlighted the company’s growing commercial portfolio as evidence of Acrux’s capabilities in developing and marketing FDA-approved topical generics in the US. While commercial distribution of Dapsone 7.5% Gel in the US has taken longer than expected, its tube packaging differentiates it from competitors and is anticipated to drive stronger long-term returns.
Looking ahead, Acrux is actively exploring opportunities to commercialize its existing products in other international markets that offer attractive returns and incremental growth. The company continues to evaluate its R&D pipeline, balancing ongoing development with leveraging the income streams generated by its commercialized products.
Overall, the September quarter results mark a pivotal step in Acrux’s transition from development to sustained commercial growth, with a clear trajectory toward expanding its global footprint and enhancing shareholder value.
Bottom Line?
Acrux’s strong quarterly performance sets the stage for accelerated growth, but international market expansion and sustained profit share gains remain key to watch.
Questions in the middle?
- How will Acrux accelerate US market penetration for Dapsone 7.5% Gel given initial delays?
- What international markets is Acrux targeting next for its topical generics portfolio?
- How will higher staff costs and administrative expenses impact profitability in coming quarters?
