2nd Sep 2024 15:49
(Alliance News) - Futura Medical PLC offers "significant upside potential", an analyst on Monday said, after the firm confirmed Eroxon was available for pre-order online in the US.
The sexual health products company said Eroxon, a fast-acting gel used to treat erectile dysfunction, would also be available in US stores from October.
The product has been available without a prescription in UK pharmacies since March last year. More recently, Futura struck a licensing deal with Haleon PLC for the gel, which has led to its availability in the US.
Analysts at Stifel explained Futura out-licensed US rights for Eroxon to Haleon following FDA approval in July 2023, with Futura receiving undisclosed royalties on in-market sales and commercial milestones.
Stifel had assumed a GBP4 million US launch milestone in 2025. Bringing this forward to 2024 would see Futura report its first profit this year, the broker calculated.
"Given that Eroxon will be the only FDA-approved ED treatment available OTC in the US, we see a significant opportunity," Stifel commented.
The broker forecast peak in-market sales of GBP176 million in the US, valuing the US opportunity alone at 78 pence per share.
"We continue to see Futura as an undervalued story with significant upside potential," Stifel said.
The broker reiterated a 'buy' rating.
Shares in Futura jumped 19% to 39.90p in London on Monday.
By Jeremy Cutler, Alliance News reporter
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