Investors are rightly starting to take notice of the commercial prospects for Futura Medical (FUM:30.5p), a pharmaceutical company that is developing a portfolio of innovative products based on its proprietary, transdermal Dermasys drug delivery technology.
In fact, the share price of the Aim-traded company has risen by more than 100 per cent since I included the shares, at 14.85p, in my 2019 Bargain Shares portfolio, in turn helping the portfolio to outperform the FTSE Aim All-Share index by almost 10 percentage points since launch on 31 January 2019. For good measure, I subsequently highlighted a timely repeat buying opportunity in Futura’s shares, at 14.75p, in a detailed analysis in early April ('Futura’s blue-sky opportunity', 15 April 2019). It’s easy to understand why investors are warming to the investment case.
That’s because the company has just confirmed that it is on track to release headline data by the year-end from its Phase III clinical study for flagship product MED2005, a breakthrough topical gel for the treatment of erectile dysfunction (ED). The company has recruited more than 1,000 patients across 60 centres in central and eastern Europe in order to compare the efficacy of glyceryl trinitrate (GTN) absorption of the gel, against that of placebo, with an initial three-month study period for each patient. The gel has a rapid response, with first detection in blood plasma in four to five minutes, reaching peak levels in the bloodstream within 10 to 12 minutes for all doses. Futura will incorporate feedback from key opinion leaders in ED, the US and EU regulatory agencies, as well as potential commercial partners, to increase the chances of regulatory approval and to optimise the commercial value.