So Futura Medical finds itself in the situation of potentially having an Erectile Dysfunction gel that both consumer health companies potentially find themselves interested in and pharmaceutical companies .
The problem for Futura Medical is that the forecast sales rely on the product initially being in prescription form (Pharma sector) and then OTC & off the shelf potentially(consumer healthcare product).
Therefore a licensing deal has major setbacks if licensing to a pharma company (they are not really built for consumer health will not be in a rush to switch to consumer health and off the shelf products (OTC is not applicable in the USA)
Meanwhile signing a licensing deal with a consumer health company has the setback in that a consumer healthcare company does not have the deep reach to penetrate the Pharma sector and sales force to raise awareness for doctors to prescribe the MED gel.
Therefore it makes absolute sense to sell the asset (something I believe will be done due to the challenges described above) once phase 3 is completed.
Potential licensing royalties that are being quoted relentlessly on the LSE Board are all well and good but they do not consider the real challenges as mentioned above. My view is that only after the discussions took place that the agendas of the different parties came to the fore.
Appreciate any other thoughts on this