LONDON (Alliance News) - Futura Medical PLC on Thursday said that its condom product CSD500 has been approved for manufacture with an extended shelf life, as it proposed a share placing to raise up to GBP12 million.
Futura intends to conduct the share placing via an accelerated bookbuild, to be conducted by N+1 Singer Advisory LLP. It plans to place up to 21.1 million shares at a price of 57 pence per share.
Shares in Futura were down 5.3% at 62.00p Thursday.
Futura said that, whilst it has sufficient cash for its near-term needs, it believes it would benefit from the additional finance to help it accelerate its growth strategy, particularly its programme for erectile dysfunction treatment MED2002 and for its pain relief products.
It will use the proceeds of the placing to fund the development required to speed up bringing MED2002 to market, and to fund the clinical work and trials needed to develop its pain relief portfolio. A portion of the funds will also be used for general working capital purposes, Futura said.
Elsewhere, Futura got approval to allow its manufacturing partner TTK Protective Devices Ltd to manufacture CSD500 with an extended shelf life of 18 months.
TTK will manufacture CSD500 for worldwide distribution, as well as marketing and distributing the product in India under its Skore brand. A separate regulatory submission for Futura's European manufacturing partner for the same extended shelf life is under review with the EU regulatory body.
"At the time of our half-year results in September, we highlighted that regulatory approval was imminent for TTK to manufacture CSD500 with an extended shelf life of 18 months. This is in line with the requirements of our commercial partners, and we are pleased that this approval has now been received," said Chief Executive James Barder in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Futura Medical (FUM)