RE: Master Investor tips Futura Medical to 50p and higher22 Dec 2021 19:33
It is getting larger
As it develops the group is expending ever more of its funds, with its operating losses getting larger.
In due course we should expect contributions to scale-up of the group’s manufacturing and production capacity, especially as MED3000 gets launched in certain countries later next year.
Global demand
Already in 2021, the company has entered into several large commercial licensing deals. It is aiming at the ED markets in the Middle East, China, Latin America and South-East Asia.
The company is now in negotiations with multiple interested parties for other countries and major regions. Details can be expected early next year.
Recent Update Statement
Earlier this week the £100m capitalised company published a US regulatory and commercial update for MED3000.
In that Update, James Barder, Chief Executive of Futura Medical, commented: “We are continuing to make good progress with the regulatory process for MED3000 in the US. We are also executing upon our strategic plans to leverage commercialisation globally with a network of licensing and distribution partners with brand building strength, healthcare credibility and regional infrastructure and marketing expertise.”
Its equity split
There are some 287m shares in issue.
Larger shareholders include Lombard Odier Asset Management (Europe) (25.00%), Hargreaves Lansdown Stockbrokers (8.00%), T Adams (6.91%), Henderson Global Investors (5.42%), WT Lamb Holdings (4.47%), UBS Asset Management (UK) (4.06%), RA Lamb (3.28%), Chelverton Asset Management (3.01%), Hargreaves Lansdown Asset Management (2.98%) and finally Atlantis Investment Management (HK) (2.77%).
Broker’s View
Analyst Alistair Campbell, at the group’s brokers Liberum Capital, has rated the group’s shares, now 34.5p, as a ‘buy.’
His estimate is that the year to the end of this month will see the company reporting a £4.7m loss (£2.9m), while he goes for a bigger £4.9m loss next year.
However, he has made certain calculations as to the company’s ‘sum of the parts’ valuation – coming out with a 102p per share figure.
My View
Over the next few months, taking us up to the Spring of next year, I would expect Futura Medical to publish various update comments on both product progress and its global collaborations.
That will keep the company in front of investors in early 2022.
It should also give the shares a bit of an upward kick.
In the last year or so they have touched 84p, having risen firmly since my early 2019 profile.
At that time, I did not give out my price objectives, but today I will.
My new Target Price for Futura Medical is that the shares, now 34.5p, will hit 50p in 2022, if not even higher, especially as US approval is sought later in the year.
Sign In
Follow the stocks
