Futura Medical PLC (AIM:FUM, OTC:FAMDF) has widened its strategic review after warning that revenues next year will come in well below forecasts and that its cash is likely to run out early in 2026.
The AIM-listed company, best known for its over-the-counter erectile dysfunction gel Eroxon, said it now expected revenue of between £1.3 million and £1.4 million in 2025.
That compares with market expectations of £5 million, reflecting slower-than-hoped sales in all markets and particularly in the United States, where Futura had pinned its highest hopes.
The company said that initial stock shipped to distributors in 2024 was still covering demand, meaning follow-up orders, which would generate this year’s revenue, had been far weaker than expected.
Adding to the pressure, a $2.5 million milestone payment from Haleon linked to the grant of a US patent for Eroxon is now unlikely to be received until the first half of 2026.
Cash stood at £2.71 million at the end of August, which Futura said would cover operations only into January 2026 on current trends.
The business is therefore “exploring a number of different avenues to extend its cash runway, including considering commercial options and opportunities for financing”.
It also plans a “significant restructuring” to cut costs in line with its slower commercial progress.
The board, which began a review in August, said it was now examining a broader range of possibilities, from fresh licensing and distribution partnerships to the potential sale of assets.
Development of pipeline products Eroxon Intense and WSD4000 will continue.
Futura will publish half-year results on September 30.