Shares in Futura Medical PLC (LON:FUM) rose 11% after it signed a manufacturing deal with India’s leading condom maker.
TTK Protective Devices, part of the conglomerate TTK Group, will produce the Futura CSD500 prophylactic, which helps men maintain an erection, for distribution worldwide.
The UK firm has also inked an exclusive licensing agreement for the marketing and sale of CSD500 in India for the lifetime of its patents.
TTK, maker of SKORE, India’s biggest condom brand, will be one of two manufacturers of CSD500. The deal is part of Futura’s strategy to guarantee international supply.
A European partner already holds manufacturing authorisation for the condom, which is currently marketed in the Netherlands and awaiting regulatory sign-off for the extended shelf-life version.
"I am delighted to sign these two agreements for worldwide manufacturing and for distribution in India of our novel erectogenic condom, CSD500,” said Futura chief James Barder.
“It has always been our manufacturing strategy to offer CSD500's licensees the guarantee of supply by having dual sourced manufacture in Europe and in Asia.
“TTK is an ideal manufacturing partner as it is a highly experienced condom maker that has supplied the world's largest condom brands.”
Shares stronger for longer
At 12:55pm the shares were changing hands for 19.95p each for a rise of 1.95p. In the past month the stock has advanced 28%.
Futura Medical looks to be overcoming problems with its innovative condom which helps men and their partners to have better sex.
The CSD500 condoms, which are designed to help men maintain an erection and maximise penal size, have had shelf-life issues.
The company has been working on ways to allow the product to be stocked for two years rather than one year.
And it said on Tuesday that it had achieved the desired extension to the "sell-by date" of CSD500, which maintains a firmer erection, maximises penile size and gives women a longer-lasting sexual experience.
IN DEPTH: Primed and ready to go
It has applied to get a modified manufacturing process for the condom approved in Europe and expects to receive consent in the middle of this year.
Barder said: "We have made important progress with the shelf life extension of our novel condom CSD500 and we look forward to the start of licensee launches in 2016 and beyond."
Futura has also made significant advances in its clinical programmes in erectile dysfunction and pain relief.
The erectile dysfunction product MED2002 is aimed at addressing a need for an alternative to the current erectile dysfunction treatments.
People report side effects such as headaches and heartburn from taking Viagra and Cialis, while for others the blue pill isn’t an option as it clashes with existing medication they are being prescribed.
A stong drug pipeline
Futura said a study of MED2002 began in June last year and is expected to produce headline results by the end of the first half of 2016.
Recruitment of patients for the study was proceeding well and no serious adverse effects had been reported yet.
At the end of the year, Futura had 14 staff compared with 12 a year earlier. It is not anticipated that numbers will rise significantly this year.
The group had cash resources of £4.19mln at the end of 2015 against £9.49mln a year earlier plus tax credit receivable of £1mln versus £480,000 last time.
Barder said: "Our balance sheet remains strong."
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