Futura Rises on Erection-Gel Licensing Deal SpeculationMakiko Kitamura
Futura Medical Plc rose the most in almost two months on speculation that it will announce a licensing agreement on its erection-enhancing product.
Futura rose 11 percent to close at 70.5 pence in London trading, the biggest gain since Nov. 13. The price is the highest since July 12 and gives the Guildford, England-based company a market value of 54.6 million pounds ($87.8 million).
The company is seeking a new partner for CSD500, a gel used inside a condom, after talks with Reckitt Benckiser Group Plc collapsed in August. Investors may be anticipating an announcement “over the next quarter,” Chief Executive Officer James Barder said in an interview. He declined to specify when the company might complete a deal.
“We are pleased about the progress being made,” Barder said today by telephone. “We’ve had a lot of interest, and those discussions are progressing.”
Approval of the CE Mark needed to sell CSD500 in Europe is also “on track,” the company said in a statement today. While the board is confident of licensing the product, there is no guarantee of a deal or that the terms will reflect management’s expectations of the produt’s value, Futura said.