It has taken a lot longer than expected for Futura Medical to report product sales, but income from that source should show through this year- and from not one, but two products.
Until last month, the number one royalty earner was SD500, a condom which offers men a firmer erection and will be marketed by Durex, now owned by Reckitt Benckiser. But it needs a European kitemark to be marketed, which Futura hopes will be received “shortly”. Also licensed to Reckitt Benckiser is MED2002 which is a topical gel for the treatment of men with erectile dysfunction.
And in an announcement a few weeks ago, Futura revealed that it had signed an exclusive worldwide agreement with Aussie condom maker Ansell (number two to Durex) to distribute PET500 which is a topical anaesthetic spray for “enhanced sexual control”. A key factor here is that “no further clinical or regulatory work is required ahead of launch in certain key territories”. Income last year came from Glaxo as it develops (at its own expense) TRP100, a topical pain relief.
As yet there are no 2011 forecasts as brokers were involved in a £3.2m placing at 67.5p a share which accompanied the latest results, but investment bank Matrix is advising a target share price of 120p for clients.
| ORD PRICE: | 69.5p | MARKET VALUE: | £47.0m | |
| TOUCH: | 68-71p | 12-MONTH HIGH: | 86.75p | LOW: 35.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 1p | NET CASH: | £825,000 | |
| Year to 31 Dec | Turnover (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | nil | -1.97 | -3.4 | nil |
| 2007 | 15 | -2.46 | -4.1 | nil |
| 2008 | 150 | -2.08 | -3.4 | nil |
| 2009 | 50 | -1.51 | -2.2 | nil |
| 2010 | 125 | -1.32 | -1.6 | nil |
| % change | +150 | - | - | - |
