15th Mar 2016 10:30
LONDON (Alliance News) - Futura Medical PLC Tuesday said its loss was wider in 2015 after it ramped up spending on developing its three main products, but said those costs will be substantially lower this year after some of its products reached certain milestones.
The healthcare company, which generates negligible revenue, reported a significantly wider pretax loss in 2015 of GBP6.1 million compared to the GBP3.5 million loss booked in 2014 after ramping up its research and development spending to GBP4.8 million from only GBP2.4 million the year before.
Futura Chief Executive James Barder said research and development costs are expected to be "significantly lower" this year following an intense period of clinical activity last year, as the company turns its attention to commercial development.
The main reduction in research and development this year will be because the GBP2.4 million spent on its erectile dysfunction gel and pain relief product development in 2015 will not be repeated this year.
The company's novel condom, CSD500, will start to be licensed out this year and the company is also progressing clinical programmes in erectile dysfunction and pain relief.
Currently, Futura is awaiting for its condom to be granted European approval, which is expected to be granted in the middle of this year, after managing to extend the shelf life of the product using a modified manufacturing process that should lead to CSD500 meeting the launch requirements of its commercial partners, it said.
It currently has licensees in over 31 countries for CSD500, and has recently secured its first commercial order that implies the product will be launched sometime in the second half of the year.
"We believe the regained momentum behind CSD500 will continue to grow during 2016 and we anticipate further commercial orders in the months ahead. In addition, as the challenge of shelf life diminishes, we have turned our attention to signing further territorial agreements and expect to announce at least one new licensee agreement during the current year," said Futura.
Futura said both its non-steriodal, anti-inflammatory pain relief products demonstrated significant pain relief in clinical studies in 2015, and the company has been advised that no further clinical efficacy work is expected to be required for either of the products ahead of submission of regulatory dossiers, which the company aims to submit by the end of 2016.
Its third product, MED2002, which is a topical gel for the treatment of erectile dysfunction is due to undergo a study before the end of the first half of the year and the company is currently recruiting patients for that study.
Futura reported a cash balance of GBP4.2 million at the end of the year.
Futura shares were trading down 2.2% to 22.50 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Futura Medical