Investors are overlooking commercial progress at pharmaceutical group Futura Medical (FUM:AIM) as the market concentrates on still piddling revenue and huge losses. The share price fell 3% to 55p as the AIM tiddler reported sales of just £170,362 in the year to 31 December 2016.  

That represents a five-fold jump from the £29,476 posted in 2015 and came in above the £110,000 expectations of broker N+1 Singer. Yet revenues pail against operating losses of more than £4.5m and the near £4.3m of cash used by the business during the year. Futura had £12.3m of net cash as of the year end, although that was largely thanks to a £12m cash call at 57p per share in November.

Futura has developed a range of products that deliver treatment transdermally, or in other words, through the skin. Target markets include sexual health and pain relief. Revenue, such as it is, is generated by out-licensing products to distributors, who sell them to supermarkets or pharmacies.



The company recently launched its CSD500 erectogenic condom in Saudi Arabia through its distributor Kabey, which helps men to maintain an erection by encouraging blood flow in the penis. Further launches are expected in the Middle East and North African region this year.

Management has its fingers crossed that the treatment will quickly translate to meaningful sales through milestone payments.

CSD500 has been out-licensed to 41 countries, which includes commercial markets in North America and Europe. Distribution agreements have also been sealed for Southeast Europe and Portugal.


Management is also upbeat about MED2002, a treatment for erectile dysfunction that has previously been hailed as an alternative to Viagra. Latest clinical study results suggest it has the potential to be the world's fastest-acting treatment, according to the company.

MED2002 has yet to be approved by regulators but Futura hopes to release the treatment in 2019/2020. Earlier this month Shares revealed that the over-the-counter gel is believed to have a market potential worth $1bn annually, according to market researcher Ipsos.

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Issue Date: 23 Mar 2017