Futura Medical PLC (AIM:FUM, OTC:FAMDF) shares rose in early trading after the company secured a $5 million milestone payment following the US launch of its erectile dysfunction gel, Eroxon.
The payment was triggered as distribution partner Haleon began fulfilling online pre-orders and making the product available in US retail stores.
Eroxon is the first over-the-counter treatment for erectile dysfunction to be sold in the US, and Futura expects to receive the payment soon.
In the first hour of trading the stock was up a penny at 33.55p.
Stifel reckons peak Eroxon sales will be £176 million, valuing the US opportunity alone at around 100p a share.
"We continue to see Futura as an undervalued story with significant upside potential, with the prospect of US royalties generating strong operational leverage given a largely fixed existing cost base," the American bank said.