News that Futura Medical (FUM:AIM) is to sell its erection-maintaining condom in India, sends the shares 8.3% higher to 19.5p.
The drugs-through-the-skin delivery specialist, which also makes pain relief and erectile dysfunction gels, has signed a deal that will see its CSD500 condom made and then sold in India by local outfit TTK Protective Devices.
The condom, which works thanks to a special gel, will be sold in India under TTK’s SKORE brand, which has a 10% market share in the country.
The first sale is expected during the opening three months of 2017, if the regulator approves the manufacturing agreement.
The TTK deal is part of Futura’s strategy to sell its condom under some of the world’s leading brand-names. When it comes to sexual health consumers are more likely to buy a recognised brand.
A 12 month shelf-life version of CSD500 is available in five European countries under the Blue Diamond brand. The owner of the European rights is waiting for the regulator to approve an increased shelf-life version of the treatment.
Drug and medical device companies are not for impatient investors. The market can wait years before the board posts news of a clinical trial result, a product approval or distribution agreement.
Futura is no exception. The Surrey-based company has lost 36% of its value since the start of 2016 to Friday’s close as the market waits for something to happen. An upbeat progress report in 15 March’s prelims did not provide a rescue with the market focusing on its losses almost doubling to £5 million during 2015 thanks to higher R&D costs.