LONDON (Alliance News) - Shares in Futura Medical PLC plunged on Wednesday after reporting that potential partners for the licensing of MED2002 have asked for further tests on the product before going into more advanced discussions.
Shares in the pharmaceutical company fell 32% at 17.47 pence on Wednesday.
As a result of discussions, Futura said it decided to take MED2002, a topical gel for the treatment of erectile dysfunction, through phase three development, and then partner on the product or sell the asset.
The first European Phase 3 study is on track, with the first patients expected to enter study in the next month and headline data to be produced by the end of 2019, Futura said.
In addition, Futura's CSD500, an erectogenic condom has received approval for a two-year shelf life for its European contract condom manufacturer.
However, Futura said it does not have the marketing or regulatory medical device resources to support the day-to-day requirements of what is a highly compliance-driven market. Therefore, it will look to license the product with partners that can meet the regulatory obligations.
In spite of this, Futura said the immediate potential substantial royalties through this strategy is low due to the absence of a large global brand 'carrier' to take the product forward. The company said it will continue to look for national, multi-territory and regional deals.
"As an innovative specialist R&D company with finite resources, it is very important that our strategy is focused on where we can deliver most value for our shareholders - by developing our portfolio of innovative products for two large market categories, sexual health and pain, and then partnering at the optimum time to generate most value. We believe this more concentrated focus on MED2002 and our pain relief gel will enable us to achieve this," said Chief Executive Officer James Barder.
Futura Medical will release its interim results on Wednesday next week.
Futura Medical (FUM)