Futura Medical (LSE:FUM) — Investor Presentation

0:01 Good morning, and welcome to the FUTURA MEDICAL PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses as it is appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over James Bard, the CEO. Good morning, Giselle. Good morning, and thank you for that, and welcome, everybody. First of all, just the usual disclaimer. And now, you know, very welcome very pleased to I'm James Barr. I'm chief executive, and I'm joined with by Ken James, executive director and head of r and d, and also Andrew Hillgrith, who's the finance director and COO.

0:54 First one is gonna give you well, Ken and I are gonna give a a brief summary. If you haven't beforehand, can I suggest that you look? On Thursday, we did an investor seminar, which is now up on our website, and I strongly recommend you review that. Further ado, let's move on to a short presentation. So a little bit about FUTURA. We are an aim listed company. We describe ourselves as a virtual organization. We employ 15 staff, including directors. And so we therefore have a preload overhead base. We have a significant outsourced infrastructure. We use external contract manufacturers, and we have them on our books around about 30 consultants. We can't plug plug in and out of it like light bulbs as and when we need them, but it's the most efficient way of optimizing that value.

1:47 Our real core asset is doses, which we describe as basically supplying skin salts to deliver novel therapeutic clinically proven treatments. I should also add that we always look to find intellectual property around this and patents are very important. For example, on MED 3,000 patents, we've applied for those and those are progressing through the usual process that you do, which typically takes a year, maybe up to three years to get to get granted. Again, we look for clinically proven innovation using these gel formulations, and we have an experienced management team. And our main focus at this stage on sexual health, our our core product, which I'm sure most investors will be aware of, is MED three thousand. This is a topical gel for the treatment of erectile dysfunction.

2:41 It is now both EU and FDA approved, for available without a doctor's prescription in The US. It is also approved in around about five Middle Eastern countries, and we do expect over the next year, two years for the approval to roll out through many other countries throughout the world. Key differentiator with this treatment is the fast onset of action. And the claim that we can make is it helps you get an erection within ten minutes. So just a sort of brief summary of some key development and commercialization commercialization milestones that we've done over the last two years. Canada's run to two clinical studies, FM fifty seven and seventy one, which helped us initially get EU approval, more recently, the US FDA approval.

3:32 Key Voci approvals excuse me. Commercial distribution agreements are in place now with four different companies. In Southeast Asia, we have Memorini. We do also have a deal that was done with Cohu, but we are currently examining exactly what we're do with that as it's not progressing at the speed that we would like. In The Middle East, we have a deal with Labotec Pharma, and we've already indicated that we will be shortly launching in The Middle East, although they will be rather. In Europe and including The UK, we use a company called consumer a group of consumer health. And then finally, in Latin America, we have a a deal with a company called MA or Moxtra Pharmaceuticals. We've already had initial launches in UK and Belgium, both retail and online.

4:23 And there are further launches that are underway now in France, Italy, and Spain initially online and that we followed up in due course with bricks and mortar launches. There are a number of other further launches that we expect not only in 2003 but also beyond. Key strategic strategic outlook for us very much now that we've got US approval is to find a US commercial partner. We've got a number of discussions that are progressing when we can say more to shareholders, we'll obviously do that. You know, key thing here is that this is the first over the counter topical treatment in The US, which is a huge milestone. In addition to, obviously, The US commercial partner and recruiting arrangements there, we're also looking to complete our distributor network and develop a robust supply chain to basically make MED a long term sustainable and profitable product, and that is progressing well.

5:26 There will be further launches under the brand name Eroxone over the next twelve months and beyond. And in particular, we'll be focusing on our pipeline, not only on what we've already disclosed beforehand, but also where we can maybe bring more innovation, from there. We're already getting from our commercial partners how can we extend that, how can we develop, basically a new category. Kat? Good morning, everyone. These are the key attributes of iroxan. It's clinically proven. As James has mentioned, we've run two clinical studies, FM 57 and FM 71. In both of those studies, the data was fairly consistent between them, and we showed that the product is effective in mild, moderate, and severe ED.

6:17 We put a mix of of etiologies into each of those studies, psychological origin, organic origin, and the majority of of subjects in those clinicals have a mix of both of those, across an age range of 18 to 70. Key, we feel, to the success of the product is the differentiated consumer claim helps you get an erection within ten minutes, which is now approved in not just The EU and The UK, but The United States, importantly. And the the importance of that is that it allows spontaneous, course, to occur. Whereas the oral medications, which, by the way, are on prescription for the foreseeable future in The United States, but they typically take thirty to sixty minutes to work. So this is a key differentiating claim.

7:08 And we find in the clinicals that couples do use the product as part of foreplay. Because we have a medical device and, it's drug free, the product is extremely safe. We, experience very low side effects in males and their partners, and there are no adverse drug interactions, which is, again, a point of differentiation from the oral medications where there are a number of drug drug interactions, and we don't have that issue. And we have availability in OTC in all the markets where we have approvals now. Importantly, The US where we are the first meaningful erectile dysfunction product to be over the counter.

7:57 And then a final, again, I repeat what I said earlier. This is just one of the slides that we shared last week at the investor seminar with institutions. And it's just a snapshot of of research that was conducted last year in The States, but there are a few more slides which Isabelle went through last week. So, again, I I urge you to to look at that. But this is basically a five year launch plan and peak sales for The US at five positive, and we're we're looking at around, like, $400,000,000. Again, that was an Ipsos research that was was done back in 2022. We've done a similar one back in 2017, and the numbers remain consistent with both those different searches.

8:45 That is kind of that concludes the slides that we're gonna go through. We've deliberately kept it pretty short and sweet to enable investors an opportunity to ask first questions. Perfect. Well, thank you very much for the presentation. I'll just bring your cameras back up now. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab, which is situated on the top right hand corner of your screen. As you can see, we received a number of questions pre submitted and throughout today's presentation. And Angela, if I could just ask you to read out those questions and what I'll do is I'll pick up from you at the end. No problem. Thank you. So the first question is for you, Karen. Think. It's the easy one actually. Yeah. When will the FDA approval process be completed? Well, I I I think most of the audience know that we did get approval on the June 9, late at night, in The UK at the end of day in the in The US.

9:46 Actually, it's more precise for de novo medical devices. What FDA talked about is granting marketing authorization, but that effectively needs approval. So that has been achieved. Okay. So next question. Ignoring the potential bogus reviews on Amazon and Boots, what percentage of sales have been returned for a refund? Have you got this data, or does the disclaimer of trying three to four times to get the effect diminish potential returns? Yeah. I mean, we we've had some complaints in. Maybe that's the best way of describing it. We haven't issued any refunds at all, though. It's stressed. It's not our responsibility. It's Cooper's, but we work very closely with them. To my knowledge, we have not refunded anybody.

10:37 As far as the level is concerned, I mean, you're dealing with point o o 9%. That's sort of I mean, we're talking of a very, very few complaints based on the volumes we sold today. Next question. Given that presentation alluded to 1,900,000 sales, so I think the the person who's asking the question is referring to the presentation that Isabelle gave on Thursday. Was or John, I think, maybe you that. Yeah. Was this just UK or UK Belgium combined? And how do sales compare between the Belgium smaller pharmacy outlet model and the route taken in The UK of the sole distributor on the high Street.

11:22 Okay. I mean, I can't recall the exact numbers that John gave, but, certainly, John was there. He's the marketing director of FUTURA. FUTURA were appointed by Cooper who have European and UK and Swiss rights. So he was specifically talking about UK. As far as Belgium is concerned, it's going pretty well there. Not quite as well as The UK, but then they approached KURA approached the marketing there in a different way. As we said initially, that the these are sort of big full test launches to to gain key learnings from that of how different people act. But, basically, they're they're happy with both Belgium and UK.

12:10 Yeah. Was that more question? Yeah. Yeah. I I think it just to add to that. So so Belgium, let me say this, is in addition to? Yeah. Belgium's in addition to the 1.9, but we've got very little data coming out. We've little data coming out yet, and it's not something that we're it's unlikely we're gonna start breaking it down into one country from the next. I mean, I wouldn't make the point that we expect in some markets, will sell better than others. And that's just culturally cultural differences from one market to the next. But we we it's unlikely we're gonna be actually give individual breakdown from one country to the next. It'll be more per region. K. In the presentation, and I think this is the the one where where Isabelle gave the presentation, a figure of 86 times per year usage is mentioned when referenced in The USA.

13:03 If this is the expected average in The UK too, then there should be ample data of developing a repeat prescriptions. I think we need to clarify that as this would be equating to repeat sales approximately every seventeen days or at least every three weeks. I'm not quite sure what the question is. It is repeat. When will we expect to see repeat purchases? We already know that we'll be able see repeats. You know, the the the frequency, and I think certainly the numbers that we've worked on. '86 was the exhaust research, and it varies from from different forecast, different models down to anywhere else. Yeah. And and the $409,000,000 opportunity was actually calculated off the back of 55 Yeah. Times. You know, a lot of the ICSOS research is is is assumptions that have been have been made under different scenarios. I mean, certainly, again, there there been a number of different analysis done, not only by us, by commercial partners, and those that we're also in discussion with.

14:09 And I think 50 or 44 of the things that comes to mind is probably a more realistic number of frequency of intercourse or or where people use the treatment. So going back to the gentleman or lady's question, in other words, one pack would last four weeks, so surely we should start to be seeing some data now. Again, it's a question of tracking the data. It's not always easy to do that. We're working with Boots and certainly Cooperrall, but the the easiest way to track it is usually where somebody has a Boots advantage card. Yeah. It's called not surprising, I suppose. Women tend to have the cards. Men don't. So we are getting some data. It it's still early days, but, certainly, think, Cooper, we're pretty pleased with the the launch of Gexit. We've said we're probably gonna understand that a bit more. In September.

15:03 Yeah. Okay. So moving on to something completely different altogether away from sales. It appears that a Roxxon trademark was registered by Versailles BB, a Netherlands based outfit back in 2022. Interestingly, another product, Eros Bonds, was registered around the same time. Is this the future FUTURA product that has been evaluated? Okay. Well, the the first part of that question, the side b b is a wholly owned subsidiary of Cooper. So that's why the the mark has gone into into Cooper's name at the moment, the way that we we it's just the way we operate with Cooper. Your response, I've never heard of. So not not anything. It may mean have been a name that Cooper were testing at this time There was before their market research showed that it works on was a was a better tested name. That that could be what it but certainly, I mean, yes, there are things that we're working on, but Eurosponse would not be probably a name that doesn't trip off the tongue that well. Doesn't Next question? Another one for you. Australia.

16:13 But we have to ask the question. Yes. Do you expect to have to run more trials and studies to get authorization slash approval in Australia? The short answer is no. The regulatory process in Australia, we understand to be pretty straightforward, actually. The reason for that is that the Australians do recognize the European CE mark, which is good. We have to have a local, sponsor, and, we we've identified, a group of individuals who can act on that behalf in Australia. But beyond that, when we file, it's a relatively straightforward and quick process. We think within a couple of months, that could lead to approval in Australia.

17:04 And I think we I I think I mentioned it last week, but we're planning to file in Australia in the next few weeks. Yeah. Yeah. Okay. What is a realistic time frame to launch ibuprofen in The US market, James? Well, first of when you have a commercial partner, those discussions are progressing. And then, realistically, it's it's it's a difficult question to answer because it does depend on the time of year. It does depend on the commercial partner because whereas certain discussions we're having with a number of commercial parties, they will launch as soon as possible. You do have to dovetail that into especially with the retail and bricks and mortar launch, all major retailers have different windows of when they will restock and refresh their lines. So it's difficult to be too specific on it.

18:01 I think all I would say is if you look at the deal that we did with with Cooper, we signed it in in May, and it was on the market the following year. So that's probably realistically the sort of timelines that we're looking at. If we can do it more quickly or commercial partners can do it more quickly, then, obviously, that will be lockdown. But we need to, first of all, close on a deal with the with The US bar. Okay. And I think, actually, there's another another question come through in relation to giving some color on manufacturing ramp up plans. Okay. We've already got two partners.

18:49 You if your computer's gone to sleep, you just need to unlock your computer. Hi. Sorry. I think we can you hear us? Yes. We can hear you. Just one moment. We're just yeah. Sorry about that. I did. I just went to sleep. Is it? Okay. So the question was oh, yes. So about that manufacturing. We already have one manufacturer that that is producing product, and we are currently looking at several other sites. We're in advanced discussions on on that both in Europe and also on the the other side of the bond in America. That will somewhat depend on the commercial partner that we choose as well because some commercial partners have many Have their own capability of their own.

19:45 Some some of them would need to to outsource that. So, you know, certainly, we we have sufficient capacity based on projections for the next couple of years, excluding The US, but certainly for Europe and and elsewhere. But we wanna, as you know, I think I said earlier, one of our our key objectives is to make sure we have a robust supply chain where we have a number of different options in the case of, you know, an unforeseen situation like a file or whatever. So so that is progressing well, and we'll update the market more as and when that happens. Can you please tell us how fast you intend to roll out the launch of a rock song in other key countries? Well, obviously, it's not us to start with. I think it's important to emphasize that that in all instances, we remain as legal manufacturer, but actual marketing the marketing costs, which are not inconsiderable, the the the plans where they launch are responsibilities of the different distributors.

20:48 And again, with all of the mild stress, even though we've given them exclusive rights, there are certain key key indicators, key performance indicators that the the different commercial partners must do around, especially launch, commitment around spend for launch and so on and so on. You know, we've had a huge amount of of interest before can successfully got FDA approval, but, you know, since then as well. For us, the key thing is finding commercial partners who know how to build the credible over the counter brand that, if you like, hasn't had legacy beforehand as a prescription product. So even though we've had, I'm not exaggerating, hundreds of approaches, it is making sure you're dealing with professional companies who understand the sector, know how to build a brand, which always takes takes a bit of time.

21:41 So I lost all the the question. All the All that in Europe. Oh, right out in Europe. Yeah. So at the moment, as I said earlier, Cooper very much taking all the learnings, and there are there are three further launches going on, and there will be a number of other launches that are going to take place over the next year. But, again, as I've kind of said before, have to be slightly careful here. There are there are certainly commercial sensitivities, and our commercial partners don't necessarily like us flagging ahead of launch exactly what's going on. So we very much have to be circumspecting this, and we're obviously and we appreciate investors wanna know. We will let investors know as soon as we can do, but that will usually be after the event rather than before the event. I think I think it's fair to add, James, that the launch in The UK has gone very well so far, and there's certainly no lack of enthusiasm for rolling out in other countries. In fact, it's not the other way or anything. Yes. Yeah.

22:45 Okay. I think this is one for me, actually. FUTURA receives an undisclosed transfer price on delivery of orders to Cooper rather than on in market sales as noted in the Trinity Delta Lighthouse today. Can you explain on whether this means that it works on revenues are based on volume, or is there also a share of retail price as well, please? So this is fairly simple to answer. As the legal manufacturer, we contract with the third party contract manufacturer who manufacture Eroxone. We then mark that up, and we sell it directly to Cooper, so they buy it from us. Clearly, you know, it is depending on volume because the more that or less that they order, the more or less that we receive from them.

23:37 But in terms of how they then distribute that and price that in the market, we've already we've already taken taken our margin upfront. And that is to date mainly the way we operate in other markets. There are certain milestone payments that can be triggered on volumes. And there are some royalties which tend to be more triggered, not on the retail price, but on the wholesale price. Now it's the price that the distributor is getting before the the retailer adds their margin to it. So it does vary from one market to the next. And in part, it does vary on what is more appropriate for us, looking at the credit risk and also transparency.

24:25 And what I mean by that is at times, it's not always easy to to check exactly what the wholesale price has been achieved in some markets. And therefore, at times, it's easy just to take it on the on the on the transfer front. And I'd say also say that there is one other advantage of this is that as a transfer front, as volumes grow, it gives us greater leverage with with the manufacturers. And as said earlier, if we've got two or three manufacturers, then there's an opportunity that as manufacture grows, there are economies of scale, and there can be efficiencies in manufacturing. And, again, in all the agreements we have in place, there are provisions around that where we will in part benefit from that.

25:13 Okay. So a couple of finance questions that have just come in, and I'll probably answer one at a time. So what operating EBIT or EBITDA margin are you targeting in the medium term? First of all, that is not something that I can answer. As much as possible. Yeah. It's not something that I can answer specifically. We're unable to to to give you any forward looking statements. We will be guiding analysts such as Trinity Delta and our our broker analyst, Liberum. We will be guiding them in a bit more detail towards the end of this year as we, you know, have more information in terms of launch plans, volumes, pricing, etcetera.

26:02 But I'm afraid that at the moment today, there's there's not a lot of color I can give you on that. And then the second financial question is what what's the planned r and d spend over the next twelve months, and do you have sufficient funding in place to meet your growth targets? So, again, I can't give you a specific number for planned r and d spend. That will be something that we will will guide the analysts when we are ready to. You heard earlier, James talked about innovation if he rocks on, and and we're currently evaluating those plans in conjunction with our commercial partners and and where they think will add consumer value. But in terms of funding in place to meet our growth targets, following the exercise of the warrants by one of our longest and most supportive shareholders a couple of weeks ago, which resulted in just under 4,500,000 of funding being received.

27:01 In addition to the cash balances that we already have, in addition to the estimated £1,000,000 r and d tax credit, which we're expecting imminently, and in addition to quite conservative revenues that we we are expecting coming coming through, we have we have said that we have cash visibility into 2025. And when you think about the the kind of the value inflecting events that are coming up between now and then, that is that is long enough for us to secure a commercial partner. That is, you know, long enough for us to get clarity around US launch and US launch timelines. That's enough for us to understand how the rest of Europe is gonna be rolled out and when the other commercial partners, you know, are starting to roll out their launches.

27:56 And also, you know, bringing other commercial partners aboard for for territories and the geographies that we we don't currently have. So, you know, looking at Australia, Canada, for example, that's definitely, you know, all work in process. So I think from a a funding perspective sorry. It's the long long winded answer, but it it all comes back to being fairly comfortable on our cash position at the moment. Next question is once launched in The USA, will the company consider a dual listing? Yeah. That's an that's an interesting question. I mean, we're still a tiny company as far as what The UK level and The US market is concerned. Nevertheless, as The US launch proceeds, we do definitely become more relevant and more US centric because it's by far the biggest market.

28:49 I think what I would say at this stage is, you know, the company is very, focused on getting the launch. Sorry. Getting the the, obviously, product approved in Europe, The US, and then commercializing that. And as that progresses, absolutely, we're gonna be looking at a number of different options of, you know, what is the best way to deliver maximum value for shareholders. And a US listing, I mean, certainly, it's one of many things that we can consider. So depending on when you consider the glass half full, glass half empty, you can interpret that how you'd like. It's certainly not been ruled out, but it is certainly not something that we've considered. Okay. Got a couple of questions around the slides not been shown on the recording from last Thursday.

29:38 Can can other investors have access to all of the information at the same time? I thought they'd work. Yeah. Leave it leave it. Yeah. Leave it. Leave it. It's certainly it was the intent. Yeah. And if they were not, we will see what we can do. Next question. Alright. Okay. We've talked about time frame of US launch. Someone asked if we're safe to assume this is likely to be 2024 rather than 2023. Well, as we haven't signed the commercial company yet, I think that's It's more likely than Yes. It's more likely. Yes. Has the company considered an acquisition of female health companies or partnerships with the likes of Evoca Bio who are also enlisted, which would be a brilliant fit for FUM?

30:31 Again, I get back to my sort of question around the about around The US. But, you know, we've been very focused on what we're trying to deliver on, and we've got a pretty good team here. And I think, you know, there are a number of things that we could look at. To be honest, I've never heard of them. Do have you heard of Avoca, they're Russian. They're listed they're listed on AIM. I think it's yeah. No. They are currently running a phase two clinical trial in female. They have struggled a little bit with recruitment of that. I'm not sure whether they're running it in Russia or elsewhere. I don't have all of the details, But it's it's prescription. It's pharmaceutical. They're not devices. They're pharmaceutical.

31:16 I think that they they're focused on on the central nervous system, antidepressant. And and I think, actually, it'd be, you know, probably not the right we we have looked at female sexual health, but but for lot of reasons, yeah, for a lot of reasons, it's a lot more complicated, isn't it, Ken? Yeah. I think You can say with with without without putting too finer points on it, I I think that the female market for sexual health is very poorly served at the moment in relation to male products. With male products, obviously, the p d five inhibitors, the the oral medications have been around for a while. And they they did, for a long, long time, offer very, very effective therapy.

32:01 Of course, now we have Oroxan coming along, which we're very optimistic about. But in the female market, products tend to be very ineffective and have high side effects as a generality. So if we look at, you know, partnerships, we always have to bear in mind those factors And, also, they're on prescription. So let's not say that we're neglecting this area, but, you know, at this point in time, partnering with a company that's offering a product that's not very effective with high side effects is not really on our our wishes. I think I'd also add that, you know, as a company that that has has relied on the support, and we've had very good support from both institutional and retail investors, As we start to generate income and therefore, hopefully, profit, I think there will be I think certainly the board will be fairly rest and plunges back into into a debt or loss making situation by taking on early stage unproven products from other people.

33:11 Next question. We have noticed that Cialis launched Cialis together at Boots around the start of June. Noting that the marketing was geared towards the couple, do you think this is a coincidence, or do you feel it's in response to the Oroxone marketing launch? Actually, if you look at the way that Cialis was marketed in The US, it's always been a product that is geared towards the couple, so to speak. However, when when you look at its therapeutic profile, it's very similar to Viagra. It takes typically thirty to sixty minutes before it starts working. So, you know, the the the fact that you can't use it as spontaneous intercourse is is a limitation, which also applies to Viagra. Also, the products are behind the counter in the The UK. And if if you wish to buy the product, you you have to go through a pretty significant questionnaire, which can be up to 40 questions that have to be answered before pharmacist will will give you the product. That's not a limitation that exists for roxanol.

34:22 So so it's slow it's slow to act, and it takes, you know, overcoming a mental barrier to go to go through the trauma of having to answer all these difficult questions before you're allowed to buy the blood in The UK. I I think I'd also add that certainly on all the advisory meetings we've had with care opinion leaders, they consistently say if you can treat the couple, the efficacy of all products is better. So it it is no great surprise to see others are focusing on treating the couple as opposed to individual. Yeah. K. Another one for you, James. What are your aspirations for the development of your shareholder base and share price over the next couple of years? Well, every CEO would say share price is not high enough.

35:11 You know, I I suppose we're a little disappointed where the share price is at moment. I mean, the market is not in a great place, though I think, you know, I think we've done pretty well the last eighteen months, two years, and I think I'm pretty confident that that will progress with a number of other things that we're working on. Shareholder base, yes, we we we want to to diverse that, expand it. And I think as a company, we move from loss making and certainly, if you like, essentially pre revenue, it does open up the opportunities for getting greater institutional support. So it's certainly something conscious of and something that we'll be looking to expand. Think you missed one.

35:58 Okay. Yeah. What? One second. Are there any plans to launch in high population countries such as India and China? I I mean, yes. We've had a significant number of approaches in both markets. As I said earlier, we we do have a deal with Cohai in China, which we are currently exploring. It's not progressing as fast as we like. We certainly know that as far as China is concerned, we will need additional clinical work. India, I'm not sure at this stage. The focus has been very much on at this stage securing a US partner and other markets come slightly secondary to that. The US is by far the biggest market in the world, both in health care terms, but also in erectile dysfunction.

36:56 So that is really been our our primary focus as I kind of touched on earlier on. So, absolutely, we wanna have a global distribution, and we've got a number of discussions going on. And we'll update Cheryl as the one we can do that. If FUTURA's listing was moved from AIM to main market, would the company attract more institutional support? Well, I suppose I an answer to that is no different to the early question about dual listing. It's no. I think the board is gonna take a pretty open minded approach on what we'll do next. What we're clearly gonna do is drive liquidity, drive value, which is in everybody's benefit, but no decisions being reached on that at this stage. They've moved from from aim to main market for certain prime pros and certain cons, so you do all the IHT benefits, and there is tight regulation. So it's certainly, at the moment, it has not been our focus. Our focus has been driving the company to to revenue, to to obviously breakeven and then to profit.

38:04 And, obviously, especially on the commercial side, closing out deals and launching in the main markets we can do. So so but, absolutely, these are valid points and something that the board will increasingly consider. K. So this is a a follow-up question, and I think it's for me. And it's in relation to the the question that we got asked around the transfer price. It has been noted that that potentially discourages your marketing partner to go for margin sorry, encourages your marketing partner to go for margin slash high retail price rather than volume. Or if you see retail prices above your expectations, can you dynamically change the wholesale price during the contract?

38:51 So our partners are incentivized to to that there are KPIs that they have to contractually meet in the form of advertising promotional spend. They've also done an awful lot of pricing analysis to determine where the the the peak prices before volumes start to reduce. And we work very closely with our commercial partners to to ensure that that is that is the strategy. So it doesn't really answer the question, but I think we are we are comfortable that that is not a a strategy that our commercial partners will undertake given the the contract that we have in place with them. I think I think I also heard is that, you know, when we are negotiating with with different commercial partners, we have a pretty good idea of what we know that what what we felt the market could support from a from a retail price.

39:52 And we can factor that into whatever the transfer price was. So on our upside, we know what the price is. It's fixed. And if we can drive down the cost of goods of manufacture, then that will increase our margin. The quid pro quo is if they can get a few quid more elsewhere, then we'll kind of be locked in. Again, as you get more of a global market, you know, if somebody tries to be too clever in one market and charge ahead a lot more, you're gonna start you know, they will struggle from getting parallel imports coming in. It's suggested that Eroxone discourages oral sex due to taste. Is this correct? And if so, can it be counted? I I don't think the the product tastes bad, and and we understand that people are using it for oral sex.

40:41 But I also think it's fair to say that, you know, given the the way the product came about its development, it wasn't optimized in terms of flavor for oral sex. So that might be, you know, an area that we look at in in the future, to be honest. But, you know, I think most people who taste it find it, you know, fairly neutral, and and, you know, there's no reason why they couldn't use it that way. And then we've got two questions in relation to the pain relief portfolio. And are the plans for development continuing, or is this dependent on Eroxone revenue hitting a threshold? Yeah. I mean, at the moment, we see more value in really driving Roxxon.

41:27 You know, this is a new product category. The UK is unusual in that pretty much the only major market in the world where where two of the p d five CLS and Vibra switch to over the counter. Everywhere else throughout the rest of Europe, I think other than Denmark, The US, these products are all prescriptions. So we are creating a new over the counter category. Pain relief, you're going into a crowded market already, and I'm not ruling out us doing something in the future, but there's no question the biggest opportunity, the biggest value is around really exploiting a rock song, and that's where the company's main focus lies at the moment. The next question.

42:13 What reasons do your broker give for the share price performance to date? Is the share price being held back by fickle retail investors and by perceived past product failures by FUTURA? Now I think the first thing that we can say is that, certainly, the feedback that we've had from our broker and feedback that we've had from some institutional investors is that given the sector, they're very pleased with how FUTURA is performing alongside its peers. The market hasn't been great for some time now. But in terms of share price performance, the feedback that we've had is is that they're quite pleased by that. Not sure we can comment on fickle retail investors or what the perception is for past product failures.

43:01 It's a bit of a we we have a quite high shareholding by retail investors, and, you know, it comes with its pros and cons. You know, the benefit of of a of a high retail investor base is it provides a lot of liquidity. But the the other side of that is that it's it's quite unpredictable, and, you know, we we put good news out, and we don't see it move. And then a few days later, we see share price moving off the back of no news. So this is not really something that we can comment on in terms of intentions by retail investors. Have anything to add to that? Yeah. No. I mean, we're against the backdrop where interest rates are rising. You know, I think today's sort of guilts. You can get over 5%.

43:47 You you know, people will have different reactions. So we are against the backdrop of of of a difficult market. AIM is flatlined. The FUTURA is flatlined or or you know? So but, you know, for us at the moment, the focus remains very, very clear. It's it's turning FUTURA from a a loss making company to revenue once you've already done, but then moving it into profit as soon as we can do. And, you know, I think, you know, the vagaries of the market, it it will, you know, it will correct itself in in due course. Yes. We'll be working in bogus to do everything we can do to attract more more institutional backing, But but you just haven't said we are in a market where But but also, I think, you know, we we have a clear strategy. Yeah.

44:35 And, you know, I think it's been apparent that we have you know, we set out on a strategy. We we believe that we have delivered to date on that strategy. And I think our focus is is on continuing to to deliver that strategy. And, you know, we can't control some of the external things that are going on in the market, but we can control, you know, us performing and doing all the things that we've we've said we're going to do. We know your commentary institutions being happy, but have current II given any reasons for reducing holdings, which has pulled the stock into a downtrend. Now I'm I'm not aware of any significant reduction from institutional investors reducing their holdings, so I can't can't really comment on that. But the answer is was no. We've we've not had we've not had any feedback.

45:29 With Lombard having such a large holding within the company, do you see this as an issue to attract new institutional investments? More. No? They've been very, very supportive. Yeah. I think it's actually the opposite. I think off the back of Lombard exercising their warrants a couple of weeks ago, especially with the market being the way that it is, to be able to, you know, come out and and advise the market that that we are very well funded. The the biggest holdback for any any of our peers at the moment is uncertainty around funding, we we don't have that. So I I don't think that's an issue, and I think that certainly is a plus point to be able to confirm that, you know, we are funded.

46:31 Okay. If there are no further questions, I think we'll draw this to a close. First of all, can I on the whole board, thank retail investors for supporting the company? Appreciate we've had some some stormy times, but the company's, you know, very it's very well positioned now. I think we're all pretty excited the way it's going. And we look forward to interacting with shareholders in due course and hopefully some exciting updates from end of the year and into 2024. You very much. James, Ken, Angela, thank you all for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations?

47:24 This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of FUTURA MEDICAL PLC, we'd like to thank you for attending today's presentation, and good morning to you all.