Shares of Futura Medical skidded by 33 percent soon after the developer announced that GlaxoSmithKline was pulling out of a collaboration to develop a gel therapy for male erectile dysfunction. GSK agreed last summer to pay two thirds of the development costs of MED2002 in a deal worth about 2.4 million pounds sterling. The money was earmarked to fund three studies of about 1,500 men, providing the data it needed for a planned 2008 application. The two companies are still discussing their agreement to distribute Futura's gel technology. And Futura will likely go back to the market to find a more interested partner to push MED2002. Futura says that it has made good progress in the program since last July, making it even more valuable to a new collaborator. MED2002 is based on a compound used to treat angina.
"Whilst we are clearly disappointed by the decision, the progress in the development of MED2002 has been significant," said James Barder, Futura Medical's chief executive. "We are therefore confident in our ability to secure new commercial arrangements on favorable terms for the final development and marketing of MED2002."
- here's the report from Hemscott