REG - Futura Medical PLC - Trading, Business and Strategic Review Update

Futura MedicalAnnouncement

19/09/2025 07:00

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RNS Number : 0375A  Futura Medical PLC  19 September 2025

19 September 2025

 

Futura Medical plc

("Futura" or the "Company")

Trading, Business and Strategic Review Update

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 announces an
update to trading and its strategic review.

 

Trading Update

 

Following a full review of the forecast revenue streams, it is clear that
revenue for the year ended 31 December 2025 is expected to be materially below
expectations. As previously announced, in-market sales of Eroxon have been
slower than originally anticipated. This trend has continued across all
markets, most notably in the USA where the market size and potential is
considered to be the greatest. As a result, initial inventory orders from our
distributors, recognised by Futura in 2024, continue to meet current-year
demand meaning that replenishment sales from Futura remain significantly below
forecast.

 

Alongside this sales trend, under the terms of the Company's agreement with
Haleon, a payment of $2.5 million is due upon the granting of a US Patent for
Eroxon ("IP Milestone") that meets the contractual definition of a valid
patent claim. All filings have been made and it had been anticipated that this
milestone would be achieved in FY 2025, with the payment forming a portion of
overall revenue in FY 2025 however it is now expected to crystalise in H1
2026. The US Patent office is currently evaluating the potential grant and
external legal advice indicates a high probability of patent grant and that
the milestone payment will be triggered.

 

As a result of slower sales across all markets and with the US patent
milestone payment now expected to fall due in H1 2026, the Company expects
revenues for FY 2025 to be materially below expectations. Revenue for FY 2025
is therefore now expected to be between £1.3 million and £1.4 million(1).

 

Cash and cash equivalents stood at £2.71 million at the end of August 2025,
which, subject to a number of variables is currently expected to provide
working capital into January 2026. This takes into account the impact of the
IP Milestone grant timing and assumes no growth in revenue or other sources of
income. In light of the reduced operating cashflow and the delay of the IP
Milestone payment above, the Company is exploring a number of different
avenues to extend its cash runway, including considering commercial options
and opportunities for financing. As part of this process, the Company is
intending to undertake a significant restructuring to ensure that its cost
base better reflects the Company's current stage of commercial progress. The
Company will update the market on any developments in due course.

 

Strategic Review Update

 

Further to the announcement on 8 August, the Board continues its thorough
review of the current business and its commercial strategy. This includes the
Company's sales and marketing strategies for Eroxon as well as the costs
associated with the business and other possible strategic options available to
the Company.

 

In view of the reduced operating cash flow outlined above, the ongoing review
of the business has been broadened to consider a range of potential options to
create shareholder value including but not limited to alternative
partnering/licensing and distribution arrangements for Eroxon alongside Eroxon
Intense and WSD4000. This may include the sale of one or more assets of the
business. The Board continue to believe that there is value in the Group's
assets and therefore development plans for both Eroxon Intense and WSD4000
continue to progress.

 

Notice of Results

 

The Company's interim results for the six months ended 30 June 2025 will be
released on 30 September 2025.

 

 

(1) The Company believes that, prior to this announcement, market
expectations for 2025 performance in terms of revenue and loss after tax were
£5 million and £3.5 million respectively

 

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014
as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

Contacts:

 Futura Medical plc             Alex Duggan                                             investor.relations@futuramedical.com

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

                                                       +44 (0)1483 685 670
                                Angela Hildreth

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

 Panmure Liberum                Emma Earl, Will Goode, Mark Rogers (Corporate Finance)  +44 (0)20 3100 2000

 Nominated Adviser              Rupert Dearden (Corporate Broking)

 and Broker

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

                                Sam Modlin                                              futura@almastrategic.com

                                Emma Thompson

 

Notes to Editors:

Futura Medical plc (AIM: FUM) is the developer of innovative sexual health
products, including lead product Eroxon(®) and new products in development
WSD4000 and Eroxon(®) Intense. The Company's core strength lies in our
research, development and commercialisation of topically delivered gel
formulations in sexual health products.

Sexual health issues are prevalent in both men and women. Erectile dysfunction
(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. Around 60% of women experience at least one
symptom of sexual dysfunction, yet only one in four women seek professional
help and remain chronically underserved.

Eroxon(®), Futura's clinically proven lead product, has been developed for
the treatment of ED. The highly differentiated product, which is the only
topical gel treatment for ED available over the counter and helps men get an
erection within ten minutes, addresses significant unmet needs in the ED
market. Eroxon(®) has been nominated for a number of healthcare industry
awards and to date has won two.

Futura has distribution partners in place in a number of major consumer
markets including Haleon in the USA, the largest market for ED in the world,
and Cooper Consumer Health in Europe.

WSD4000 is a topical treatment designed for the symptoms of sexual dysfunction
in women. There is currently no regulatory approved OTC treatment available
for sexual dysfunction in women. WSD4000 has the potential to be an effective,
breakthrough treatment for the common symptoms associated with sexual
dysfunction, such as lack of desire, arousal and lubrication.

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