Trinity Delta view: As we have stated before, Futura Medical’s investment case has shifted firmly onto commercial execution. The highly successful initial launches of Eroxon, its novel topical gel for ED (erectile dysfunction), by partner Cooper Consumer Health in the UK and Belgium are being followed by roll-outs across the major European markets. Other geographies have also successfully launched. However, in our view, it is the US that could prove transformational as commercial success in the US would put Futura firmly on the path towards sustainable and growing profitability. Therefore, increasing clarity on potential launch timelines is reassuring, given limited visibility previously. Eroxon offers a unique proposition within ED, being a clinically proven, fast-acting, and safe product that can be easily bought over-the-counter. The market for ED treatments is significant and Eroxon appears ideally placed to carve a sizeable niche for itself. Our current Futura Medical valuation, based on conservative assumptions, is £371m, equivalent to 123p per share, with the US opportunity worth more than Europe and Other Regions combined.
