Acrux Ltd., the developer of an underarm testosterone lotion with Eli Lilly & Co., rose to a record in Australian trading after the treatment was approved for sale in the U.S.
Acrux rose 9.1 percent to A$3.36 as of the 4:10 p.m. close in Sydney, the highest level since the shares listed in September 2004. The stock earlier surged as much as 18 percent.
The U.S. Food and Drug Administration approved the Axiron lotion for men with certain conditions associated with a deficiency or absence of testosterone, Melbourne-based Acrux and Lilly said in a statement dated Nov. 23.
Acrux will receive a payment of $87 million from Lilly, which bought the rights to the drug in March. The Australian company will get royalties and further payments of as much as $195 million from the Indianapolis-based company. Acrux previously said it plans to pay its first dividend to shareholders in early 2011.
Lilly, based in Indianapolis, increased 14 cents, or less than a percent, to $34.22 at 4 p.m. in New York Stock Exchange composite trading.