Futura Medical plc. (LON: FUM) shares surged 16.2% after announcing a new partnership with A. Menarini Korea Limited, a subsidiary of Italian biopharmaceutical giant Menarini Group.
The Korean company will be responsible for the costs associated with the marketing and regulatory approval of Futura’s MED3000 erectile dysfunction (ED) medication within Korea.
Menarini will also pay Futura an initial upfront payment to cover the costs of manufacturing the drug. The drug will be manufactured by a contract manufacturing organisation (CMO) selected and supervised by Futura.
Investors cheered the announcement that will give Futura access to the South Korean market and potentially other markets since the Menarini Group has a presence in over 145 countries worldwide.
Futura is looking to secure a significant portion of the global market for erectile dysfunction drugs, which was estimated to be worth over US$3 billion in the leading 15 markets, with the US being the most significant market and Korea being the 9th largest market.
James Barder, Futura Medical’s CEO, commented: “We are delighted to have reached an agreement with a prestigious company that operates in a key Asian market such as South Korea. Menarini is a trusted partner in the region that is perfectly situated to market retail products, with local teams that have a deep understanding and experience of the South Korean market as well as significant expertise and a track record in rapidly registering and launching new products. We look forward to collaborating closely with the team at Menarini.”
Hyeyoung Park, A. Menarini, Korea’s General Manager, commented: “The commercialisation agreement to license-in Futura’s MED3000 is a significant milestone for enhancing Menarini’s Men’s Health portfolio in South Korea. According to the Korean Urological Association’s report1 on Erectile Dysfunction patients in South Korea, there are approximately 2.3 million men suffering from ED in the region, including patients with underlying aetiology.”
“MED3000 has been clinically studied for its onset speed and safety profile and has the potential to be a meaningful treatment option for Korean ED patients. Based on our extensive reach to physicians, multi-channel marketing capabilities, strong core values, and established track record in product launch, we are confident in generating significant value and long-term sustainable growth for both Futura and Menarini.”
Futura Medical shares have fallen 30.5% in 2022 but could have bottomed in the recent past. The shares look pretty attractive to the right investor at current prices, as many anticipate a rally.
*This is not investment advice. Always do your due diligence before making investment decisions.
Futura Medical share price.
Futura Medical shares surged 16.16% to trade at 28.75p, rising from Tuesday’s closing price of 24.75p.
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