Futura Medical PLC (AIM:FUM, OTC:FAMDF) has received a price target upgrade to 109p from house broker Liberum after its European deal for erectile dysfunction treatment MED3000 with France's Cooper Health.
Cooper appears a very credible PE-backed partner, adds Liberum, has already funded a successful Consumer In-Use study and has committed further capital to invest in the MED3000 launch.
“The deal validates management’s partnering strategy and adds confidence to the 40p/share value we assign to MED3000 across Europe underwriting the current market valuation.
“Eyes now turn to the commercial launch (next 12 months) to extract this value for Futura and to the US, where management aim to complete the same after FM71 study data” in the second half of this year.
Liberum adds the Cooper deal adds visibility to MED3000’s value hence the new target price which offers over 3 times upside.
Shares rose 7.5% to 29.5p today.