(MENAFN- ProactiveInvestors - UK) Futura Medical Plc (LON:FUM) forecast lower research & development spending this year as it reported progress with its pain relief and sexual health products.
Futura said 2015 was a period of intense clinical activity during which it made "significant advances" in programmes in erectile dysfunction and pain relief.
It said it expected R&D outlay to be significantly lower this year when it would have more of a focus on commercial product development.
In June the group began a pivotal efficacy study for its MED2002 treatment for erectile dysfunction which is expected to produce headline results by the end of the first half.
Futura has achieved an extended shelf life for its CSD500 condom which maintains a firmer erection maximises penile size and gives women a longer-lasting sexual experience.
It has applied to get a modified manufacturing process for the condom approved in Europe and expects to receive consent in the middle of this year.
It also reported major progress in its pain relief portfolio during 2015 specifically in achieving statistically significant results in a study of two gels TPR100 and TIB200.
Net losses widened to 5.08mln from 3mln in 2014 reflecting two clinical studies undertaken in 2015.
CHIEF EXECUTIVE JAMES BARDER
On the firm's increased spending...
'It's a real investment for the future. We expect next year to go back certainly in expenditure terms to what we were beforehand [around 2.5mln in 2014].'
On the balance sheet...
'We've got around 5mln in the bank this year that is around a year's cash but if we go back to [spending] what we were beforehand that's around two years' cashand that's assuming that we don't start generating income.'
On upcoming product launches...
"One of our key distributors has already placed an order [for the CSD500 condom] and manufacturing production will start very shortly on that and that will mean we'll start launching in the second half.'
On the outlook...
"In 2016 we expect to build on that progress and look forward to providing further updates."
On new markets...
"The US also represents a very significant opportunity for TPR100 and we are preparing for a meeting with the US Food and Drug Administration in the near future to clarify the remaining requirements for US regulatory approval."
ABOUT THE COMPANY
Futura Medical looks to be overcoming problems with its innovative condom which helps men and their partners to have better sex.
The CSD500 condoms which are designed to help men maintain an erection and maximise penal size have had shelf-life issues.
The company has been working on ways to allow the product to be stocked for two years rather than one year.
And it said on Tuesday that it had achieved the desired extension to the "sell-by date" of CSD500 which maintains a firmer erection maximises penile size and gives women a longer-lasting sexual experience.
It has applied to get a modified manufacturing process for the condom approved in Europe and expects to receive consent in the middle of this year.
Barder said: "We have made important progress with the shelf life extension of our novel condom CSD500 and we look forward to the start of licensee launches in 2016 and beyond."
Futura has also made significant advances in its clinical programmes in erectile dysfunction and pain relief.
The erectile dysfunction product MED2002 is aimed at addressing a need for an alternative to the current erectile dysfunction treatments.
People report side effects such as headaches and heartburn from taking Viagra and Cialis while for others the blue pill isn't an option as it clashes with existing medication they are being prescribed.
Futura said a study of MED2002 began in June last year and is expected to produce headline results by the end of the first half of 2016.
Recruitment of patients for the study was proceeding well and no serious adverse effects had been reported yet.
At the end of the year Futura had 14 staff compared with 12 a year earlier. It is not anticipated that numbers will rise significantly this year.
The group had cash resources of 4.19mln at the end of 2015 against 9.49mln a year earlier plus tax credit receivable of 1mln versus 480000 last time.
Barder said: "Our balance sheet remains strong."
THE SHARE PRICE
Shares in Futura fell 0.5p or 2.2% to 22.5p in mid-morning trading in London.
WHAT THE BROKERS SAID
Analysts at N+1 Singer said: "Futura Medical - very slightly larger loss than we forecast in results today due to higher R&D costs but the statement has some useful positives in it."
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