(Alliance News) - Futura Medical PLC shares jumped on Wednesday after the company said it has entered a licensing agreement with A Menarini Korea Ltd or the exclusive rights to commercialise its MED3000 treatment in South Korea.
Shares were trading 13% higher at 27.95 pence each on Wednesday morning in London.
MED3000 is a gel-based erectile dysfunction treatment.
The Guildford, England-based pharmaceutical firm said that under the terms of the agreements it is eligible to receive an initial upfront payment from its Seoul-based peer Menarini Korea.
Menarini Korea also has to pay an agreed price to Futura for the manufacture and supply of MED3000 by its contract manufacturing organisation, the company continued.
Further, Menarini Korea will be responsible for local development, regulatory approvals, product launch and marketing.
Futura noted that it will support Menarini to gain marketing authorisation and in commercialising MED3000 as a clinically proven treatment for erectile dysfunction in South Korea. It will also provide reasonable technical support for product development and commercialisation.
Futura did not disclose the value of the deal.
"We are delighted to have reached an agreement with a prestigious company that operates in a key Asian market such as South Korea. Menarini is a trusted partner in the region that is perfectly situated to market retail products, with local teams that have deep understanding and experience of the South Korean market as well as significant expertise and a track record in rapidly registering and launching new products. We look forward to collaborating closely with the team at Menarini," Futura Chief Executive James Barder commented.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Futura Medical (FUM)