Futura Medical (AIM:FUM), the AIM-listed sexual health products company, has ended its US distribution partnership with Haleon and replaced it with a new deal with Market Performance Group (MPG), an omnichannel commerce agency, effective 1 September.
Haleon will pay Futura a $1.9 million early termination fee, while Futura waives its right to a US patent milestone payment in exchange for the return of its US commercial rights and ownership of all Eroxon marketing materials and domain names developed by Haleon.
Finished product manufactured by Haleon to address a recent US stockout will also transfer to Futura, with a transitional services agreement in place to cover the handover period.
Under the new arrangement, MPG will handle distribution and promotion of Eroxon, while Futura retains manufacturing responsibility and ultimate control over advertising and promotional spend, generating revenue from MPG's sales via a commission structure.
Futura said the model delivers greater returns per unit than the previous out-licensed arrangement with Haleon and is consistent with its shift from a full out-licensing approach to an "actively manage and optimise" commercial strategy announced at its full-year results.
The $1.9 million receipt, combined with existing cash, is expected to fund the business into October 2026, with the board continuing to evaluate both dilutive and non-dilutive funding options.
"The scale of the market opportunity remains strong, and we believe success in the US is both achievable and significant with the right targeted marketing and distribution strategy," said CEO Alex Duggan.
