Share in Futura Medical PLC (AIM:FUM, OTC:FAMDF, FRA:GYX) rose 19% to 0.6p after it ended its US partnership with consumer health giant Haleon PLC (LSE:HLN, NYSE:HLN) and lined up a new distributor for its erectile dysfunction treatment Eroxon.
The group, which specialises in clinically proven sexual health products, has signed a distribution agreement with Market Performance Group, a US omnichannel commerce agency.
MPG will take commercial control of the US market from 1 September, once a transitional handover from Haleon ends.
The switch follows a patchy run for Eroxon in the United States, where sales have progressed more slowly than expected since its launch in October 2024.
Futura said the opportunity remained clear to both parties, but that its strategic importance to Haleon had lessened.
The two companies have agreed an early termination fee of $1.9 million payable to Futura.
In exchange for the return of US commercial rights, Futura has waived its right to a US patent milestone payment.
The deal also hands Futura all the marketing assets, domain names and finished product Haleon had built up, including stock manufactured to address a recent US shortage.
The termination fee, alongside the group's existing cash, is expected to fund working capital into October.
Futura added that its board continues to weigh a range of dilutive and non-dilutive funding and strategic options to extend its cash runway.
The new arrangement reflects a strategic shift flagged in the group's 2025 results, moving from a launch-and-step back model to one of actively managing and optimising its products.
Under the agreement, MPG will handle distribution and promotion while Futura retains responsibility for manufacturing through an existing outsourced supplier.
The UK group will keep ultimate control over advertising and promotional spending, and will book revenue from sales, with its partner earning a commission.
It said the model was more attractive than the previous out-licensing arrangement with Haleon, offering greater control and higher returns per unit sold.
Chief executive Alex Duggan thanked Haleon for its support and investment in Eroxon during the partnership.
He said success in the US remained both achievable and significant with the right marketing and distribution strategy.
Duggan added that MPG had a strong track record with consumer healthcare brands and good relationships with key US retailers.
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