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Futura Medical Stands Proud 30% On Test Results – Why?

Trade Futura Medical Shares Your Capital Is At Risk
Updated 31 Aug 2022

Key points:

  • Futura Medical is up strongly on test results for MED3000
  • The share price is standing proud as it looks like it might make the market
  • It’s still possible to deflate, but matters are looking up

Futura Medical (LON: FUM) shares are solidly up by 30% this morning on the back of their test results for MED3000. This may not sound all that exciting but there’s a significant market for this product if all of the tests are passed. This is a report on the interim stage of those tests but failure here would have been a really deflating experience, continued testing as we can see making the shares stand tall and proud.

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Futura‘s main technical game is the use of topical creams as a drug delivery device. This can in fact work both ways around. Topical application of minoxidil (for hair loss, “Rogaine” etc) is less efficient than oral ingestion of a very much smaller dose. But it is also only locally effective rather than growing ear hair at the same time. Futura doesn’t work with that drug, just to be clear, but the argument over topical or ingestion as a drug delivery method is one where the answer simply depends. What is it that the attempt is being made to do? One method might well beat another and whether it does just depends.

Viagra, the brand name, or sildenafil the actual drug, is used today as a – temporary – cure for erectile disfunction. It is taken orally, “the little blue pill” and works for most, most of the time, but it does have certain possible side effects. Topical application might have two benefits – might note – in fewer such side effects as the drug is not throughout the system and also a faster response time. 10 minutes instead of an hour perhaps. This is what is being tested.

Futura Medical share price
Futura Medical share price from IG

Also Read: Five Best Pharmaceutical Stocks to Watch in 2022

The results from the testing of MED3000 are looking good: “MED3000 presents an effective clinically proven treatment for erectile dysfunction (“ED”) with a rapid speed of onset and a favourable benefit versus risk profile ideally suited for Over the Counter (“OTC”) classification” Or as we could translate that, so far it looks like the idea works. Topical application has fewer side effects, works, and works more rapidly.

The next stage is FDA approval and the claim at least is that this looks good as well. Possibly on the market by Q1 2023 in the US.

There is a downside to this, because of course there’s a downside to everything. Given that this is a new delivery mechanism, not a new drug, the target is not to have a patent and be able to write Futura‘s own price for it. Rather, it will be aimed at the over the counter market. Where in many markets sildenafil is already itself OTC, the alternative tadalafil is rapidly becoming so, so there’s price competition for the thing even if not the delivery mechanism. This does mean that Futura must price against that competition, possibly limiting profit margins.

On the other hand the potential size of the market is rather large – as those earlier two drug/delivery systems have shown. As, in fact, the massive amounts of spam around the internet touting versions that do not in fact work also show. This isn’t a done deal as yet, testing continues. But it’s looking good that the product will get to market.