It’s going to be BIG!!!26 Oct 2024 09:20
Get on board Futura Medical before its big profit breakthrough
24-10-2024
Futura Medical (FUM:AIM) 33p Market Cap: £99.8 million
A little over a year ago Shares highlighted a small company with only 12 employees punching way above its weight after it created the first significant innovation in the ED (erectile dysfunction) market in more than 20 years.
If anything the momentum has accelerated since then, and this month (October) sees specialist sexual health company Futura Medical (FUM:AIM) officially launch its proprietary ED product Eroxon into the US market through exclusive US distribution partner Haleon (HLN).
It marks a potential breakthrough point for both revenue growth and importantly, profit and cash generation. The earlier than expected launch also demonstrates the execution capability and laser-like commercial focus of the management team.
There are always extra risks to consider when investing in smaller companies operating with a single product, but we believe that for investors with the appetite and patience, an investment in Futura Medical could pay off handsomely.
A LARGE UNDER-SERVED MARKET
There are around four million men in the US who have been diagnosed with ED and take prescription medicines such as Viagra or Ciallis, equivalent to 500 million doses a year. But this only tells a small part of the wider investment case.
There are roughly 20 million men aged 22 to 75 in the US who suffer from ED but are not on treatment. This is the target market for Futura and its partner Haleon. Eroxon possesses unique selling points and advantages over current treatments.
Crucially, it is available without prescription or a consultation with a healthcare professional. It works in 10 minutes which introduces more spontaneity compared with existing treatments. Eroxon is the first topical gel clinically proven to treat ED.
The heavy marketing done in relation to existing ED products means the awareness of the issue among the general population is already high.
A 2022 Ipsos study on the market potential for Eroxon commissioned by Futura suggests peak annual sales of $350 million in year five, based on 7% uptake, 50 tubes purchased a year at a retail price of $5 per tube.
EUROPE AND REST OF THE WORLD
In Europe there are an estimated 20 million men affected by ED across the top five countries. Futura has partnered with Cooper Consumer Health, a leading European Union healthcare company which launched the product in the UK and Belgium in 2023, after receiving regulatory approvals in 2021.
The EU has granted patent protection until 2040. Analysts at Stifel highlight home studies conducted by Futura’s distribution partners covering more than 600 users which confirms the product has a greater than 60% success rate, in line with data from clinical trials.
Just as encouraging, says Stifel is data showing signs of repeat purchases in the UK market, running at between 15% and 20%. This is important beca
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