Futura Medical PLC’s (LON:FUM) upcoming headline data for its erectile dysfunction drug, MED2005, could be “game-changing”, according to analysts at house broker Liberum.
In a note on Thursday, the broker, which rates Futura at ‘buy’ and with a 60p target price, said the phase III clinical trial, which is expected to report by the middle of next month, had been “significantly de-risked” and had an over 70% chance of delivering a positive outcome.
READ: Futura Medical says latest data add to the growing body of evidence supporting its erectile dysfunction drug
“We believe there are 20 feasible outcomes of which just 1 would represent failure and leave no chance of approval”, Liberum said, adding that if the treatment was approved it could achieve peak sales annually of up to £500mln.
“While failure remains a risk, the risk/reward is very attractive”, Liberum said.
In mid-morning trading, Futura’s shares were steady at 32p, a 47% discount to Liberum’s target price.