REG - Futura Medical PLC - Trading Update

Futura MedicalAnnouncement

06/02/2024 07:15

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RNS Number : 0864C  Futura Medical PLC  06 February 2024

6 February 2024

 

Futura Medical plc

("Futura" or the "Company")

Trading Update

Transformational year, generating first meaningful revenues and laying the
foundations for significant growth acceleration through world leading partners

Futura Medical plc (AIM: FUM), the consumer healthcare company behind Eroxon,
that specialises in the development and global commercialisation of
innovative and clinically proven sexual health products, today provides a
trading update for the year ended 31 December 2023 ("FY23").

 

FY23 was a transformational year, with the Company successfully executing its
initial market launches of Eroxon, the first clinically proven topical
treatment for erectile dysfunction ("ED") to be available without a doctor's
prescription ("over the counter"), through its distribution partners.

 

The first meaningful revenues generated from product sales and the broader
success of the UK launch have been a catalyst for significant strategic
progress across multiple markets. The launch, success of the partnerships and
consumer take up of the product, clearly illustrates that Eroxon is helping to
satisfy an unmet need in the market and highlights the scale of the
opportunity across the globe.

 

Highlights

 ü   Significant progress made in key target markets
     o                                         FDA approval for Eroxon in the US, the largest market for ED in the world
     o                                         Haleon plc secured as distribution partner for the US and $4 million upfront
                                               payment received which will be recognised in FY24
     o                                         Successful launches in UK and Belgium through Cooper Consumer Health
                                               ("Cooper"), and extension of licencing agreement to 2029
     o                                         Granted allowance of EU patent which will provide protection for Eroxon until
                                               2040 in all European markets.
 ü   Proven demand for Eroxon - early data shows >20% market share in the UK and
     Belgium
 ü   Generation of first meaningful revenues and strong cash position

 

During FY23, Eroxon received regulatory approval in our key target markets,
including FDA approval in the US, the largest market for ED in the world.
Following this, the Company was delighted to announce that it had entered into
an agreement with Haleon plc, the world leading consumer healthcare company,
for exclusive marketing & distribution rights in the US. Futura continues
to work with Haleon on preparation for the US launch and looks forward to
updating shareholders in due course.

 

Futura's European distribution partner, Cooper, launched in the UK and Belgium
in March, followed by soft-launches in France, Italy and Spain. The Company
has been encouraged by the performance to date in these initial markets, with
Eroxon taking >20% market share of approved ED treatments in the UK and
Belgium within 12 months of launch. The success of the partnership to date was
demonstrated through the recent extension of the licencing agreement with
Cooper post the year end until January 2029, with full launches in at least
ten countries including key European markets such as France, Italy and Spain
remaining on track to take place before April 2024. The allowance of Futura's
EU patent for Eroxon until 2040 in all European markets further cements the
intellectual property of the product as Cooper continues the roll out.

 

During the year, the Company also received a number of approvals including
Saudi Arabia, Mexico and Australia and also launched in the UAE.

 

The Board expects to report its first meaningful revenues generated from
product sales for the year to 31 December of circa £3.1m followed by a strong
January, post period, as additional orders in excess of £0.5m were delivered
in early January rather than December as originally planned. The Company
delivered a gross margin of approximately 58% and has ended the period with a
cash position of £7.7m, providing a solid foundation for Futura as it enters
2024.

 

The Company expects to announce its full year results ended 31 December 2023
in April 2024 and will confirm the date in due course.

 

James Barder, CEO of Futura, commented:

"I am incredibly proud to report that we have delivered on the three key
objectives that we set out in 2023: achieving regulatory approval in the US;
progressing commercial discussions by securing a standout distribution partner
in Haleon for the largest consumer healthcare market in the world and
reporting our first meaningful revenues. The delivery of this progress,
alongside the fact that we have an award-winning product, has given us a
robust and broad platform to build upon in the year ahead.

"We are helping to address an issue that impacts 1 in 5 men globally across
all adult age brackets, with approximately half of all men over 40
experiencing ED and 25% of all new diagnoses being in men under 40. The
availability of Eroxon as the first over the counter ED product without the
need for a prescription or pharmacist intervention, as opposed to by
prescription, significantly improves access for men or their partners without
the normal cost or embarrassment issues often associated with consultation of
a healthcare practitioner.

"With the size of the target market and the progress we are making to reach
it, we look forward to the year ahead and confident of considerable growth
acceleration over the medium term - delivering progress in sales across
multiple countries and broadening distribution by launching in new markets."

 

Contacts:

 Futura Medical plc              James Barder               investor.relations@futuramedical.com

                          (mailto:Investor.relations@futuramedical.com)
                                 Chief Executive Officer

                          +44 (0)1483 685 670
                                 Angela Hildreth

                          www.futuramedical.com (http://www.futuramedical.com/)
                                 Finance Director and COO

 Liberum                         Phil Walker                +44 (0)20 3100 2000

 Nominated Adviser               Ben Cryer

 and Broker                      Nikhil Varghese

 Stifel Nicolaus Europe Limited  Alan Selby                 +44 (0)207 710 7600

 Joint Broker                    Ben Maddison

 Alma Strategic Communications   Rebecca Sanders-Hewett     +44 (0)20 3405 0205

                                 Sam Modlin                 futura@almastrategic.com

                                 Will Ellis Hancock

 

Notes to Editors:

Futura Medical plc (AIM: FUM) is the developer of innovative sexual health
products, including lead product Eroxon. Our core strength lies in our
research, development and commercialisation of topically delivered gel
formulations in sexual health products.

Eroxon, Futura's clinically proven lead product, has been developed for the
treatment of Erectile Dysfunction ("ED"). The highly differentiated product,
which is the only topical gel treatment for ED available over the counter and
helps men get an erection in ten minutes, addresses significant unmet needs
in the ED market.

ED impacts 1 in 5 men globally across all adult age brackets, with
approximately half of all men over 40 experiencing ED and 25% of all new
diagnoses being in men under 40.

Futura has distribution partners in place in a number of major consumer
markets including Haleon in the US, the largest market for ED in the world,
and Cooper Consumer Health in Europe. Eroxon has been nominated for a number
of healthcare industry awards and has won two to-date.

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