Proactive Investors - Liberum has called Haleon PLC (LON:HLN) an “excellent choice” to take on commercialisation responsibilities in the US Futura Medical PLC (LON:FUM)’s MED3000 topical, gel-based erectile dysfunction treatment.
Under the deal, Haleon will be responsible for all investments and activities related to the launch and marketing of the product in the US, while Futura will provide ongoing technical support for over-the-counter product development and commercialisation opportunities.
“Haleon is, in our view, an excellent partner with an ideal mix of scale, experience and Appetite,” said analyst Seb Jantet. “Signing such a high-profile US partner also shows the attractiveness of MED3000 and certainly reduces risk.”
Haleon is a major player in the consumer market with a broad portfolio of over-the-counter (OTC) brands. It reported sales of £10.9bn last year, of which almost 40% were generated in the US, according to Liberum’s data.
From a financial perspective, the deal “looks to be in line with expectations”, with milestones expected to deliver anywhere between US$5mln and US$45mln over several years.
Taking into account the US$4mln in upfront payments Futura is set to receive, Liberum has upgraded its price target from 142p to 152p.
“We still see significant upside despite the strong recent performance and remain buyers,” said Liberum.