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Futura Finds a Partner to Develop Its Gel-Filled Condom

Futura Medical Plc agreed to work with Church & Dwight Co. to bring an erection-enhancing condom to market after talks with Durex condom-maker Reckitt Benckiser Group Plc collapsed in August.

Church & Dwight, the maker of the Trojan brand of condoms, will have the rights to manufacture, market and distribute the CSD500 condom in North America and European territories that the company isn’t disclosing, Guildford, England-based Futura said today. Futura will receive an undisclosed upfront payment and royalties on sales as well as “certain minimum performance guarantees.”

The CSD500 condom contains Futura’s Zanifil gel and is designed to produce firmer, larger and longer-lasting erections for men who find wearing condoms difficult. Futura is also seeking the regulatory approval that would enable the product to be sold in Europe. The company has said it expects to submit a revised file of information on CSD500 to European regulators in the first half of 2013 and is aiming for approval by year-end. Futura Chief Executive James H. Barder said in a telephone interview that plan is “on track.”

“CSD500 is a genuinely novel condom that marks a major breakthrough in condom technology,” Adrian Huns, the president of international consumer products at Princeton, New Jersey-based Church & Dwight, said in a statement. “We look forward to working with Futura on the successful completion of the required approvals necessary ahead of the launch in Europe and North America.”

Futura’s Strategy

The agreement shows the board’s preferred strategy of licensing the product on a geographic basis to distributors who are the leaders in their regions, Barder said in the statement. The U.K. company is negotiating rights for other territories, he said.

“We’ve had a huge amount of interest from a number of different condom distributors,” Barder said by phone. “We took the decision that we were looking to work with a number of different players.”

Futura rose 11 percent to close at 62 pence a share, the biggest gain since Jan. 7, in London. That gives the company a market value of 48 million pounds ($72.6 million).

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