Stifel is projecting peak worldwide sales of $364 million by 2029 for Futura Medical PLC (AIM:FUM, OTC:FAMDF)'s Eroxon, an innovative gel-based treatment for erectile dysfunction (ED).
According to the US investment bank, most of these sales, $223 million, are expected from the US market, with Europe contributing an additional $117 million by 2028.
This forecast underscores the significant market potential for Eroxon, which has already received marketing approval in the United States, the European Union, and the United Kingdom.
Eroxon stands out in the ED market, which is valued at around $3.5 billion and growing at a compound annual growth rate of 13%, by offering a drug-free treatment option that acts within 10 minutes of application.
This rapid onset of action and its availability without a prescription make Eroxon a unique product, especially appealing given its broader safety profile and ease of use, Stifel said in a note to clients.
It recently initiated coverage of Futura with a 'buy' rating and a target price of 125 pence per share, highlighting the underappreciated market opportunity.
The bank pointed to Eroxon's potential to expand the existing ED market by increasing accessibility through consumer healthcare channels. The absence of drug interactions and its status as an over-the-counter product allow it to serve a wider demographic compared to traditional ED medications.
Futura has established strategic partnerships for the distribution of Eroxon, including agreements with Haleon in the US and Cooper Consumer Health in Europe.
Early commercial activities in the UK and Belgium have shown promising results, positioning Futura Medical at a critical juncture with profitability on the horizon.
The anticipation of a US launch within the next 12 months, expected to trigger an estimated $5 million launch milestone payment, further bolsters the financial outlook for the company.
In early exchanges, Futura shares were unchanged at 35.5p.