Futura Medical PLC (AIM:FUM, OTC:FAMDF)’s prelims were "broadly in with expectations", according to corporate broker Liberum, which repeated its ‘buy’ recommendation and 121p a share price target for the stock.
The results were notable in so much as they form a backdrop for the commercial push in 2023 for its key asset, Eroxon, a gel treatment for erectile dysfunction.
US regulatory sign-off for the product next quarter (Q2) and first sales in the UK and Europe should prove an inflexion point for the company – if all goes to plan.
“Encouragingly, as the launch of Eroxon builds in Europe, Futura expects to generate maiden commercial revenues this year.
“Given the lack of visibility with regards to either timing or quantum of these revenues, we haven’t yet factored them into our forecasts, but these, together with other potential sources of income mean that we are very comfortable that Futura is well funded to deliver without needing to turn to equity markets,” said Liberum in a note to clients.
“We leave our forecasts largely unchanged. The shares continue to trade at a discount to our estimate of fair value, and we see the FDA decision on US market authorisation in Q2 as an important catalyst to closing this.”
In early trade, the stock was changing hands for 46.5p, up 3.3%.