Shares in Futura Medical PLC (LON:FUM) shot up 21% after it unveiled deals that solidify its finances and provide significant commercial traction.
The latter first: It has inked an agreement with Co-High, a private equity company, which will help develop and roll out the company’s MED3000 gel for erectile dysfunction (ED) in China and South East Asia.
Co-High, with its local partners, will be responsible for development and approval costs, which are estimated in the region of £4mln. Futura would get 50% of the profits generated.
“We are very pleased to have a partner with Co-High's experience, resource and strong pharmaceutical connections in the region and look forward to working in close collaboration with their team,” said Futura chief executive James Barder.
The financing agreement, meanwhile, will see the business get up to £2mln from the HT Riverwood Multi-Growth Fund, £1.5mln of which it has already received.
The financing has been done in two tranches – a loan note that converts within three years at 20p a share (a premium to the current price of just under 17p); and the issue of 2.27mln warrants exercisable at 22p.
In an update on progress with regulators, Futura said it expects to receive EU approval for MED3000 this year.
In the US, it has held a fourth “constructive” meeting with the Food & Drug Administration to finalise the clinical trial protocol for the required small confirmatory study and is awaiting final meeting minutes.
“We remain confident that we will achieve EU and US approval for MED3000 as a clinically proven, fast-acting, topical and highly tolerable treatment for ED patients, without the need for a doctor's prescription and look forward to updating the market in the coming months,” said CEO Barder.
At 11.05 am, the shares were changing hands for 20p, up 3.5p.
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