May 13, 2009 / 7:26 AM / 10 years ago

UPDATE 2-Futura sees year delay to revenues, condom

* Launch of erection-boosting condom delayed by about a year

* Product expected to make the company profitable

* Manufacturing move means new data required by regulators

* Expects to announce one or two deals by year end

* Shares fall 20 percent (Adds CEO, market comments)

LONDON, May 13 (Reuters) - British sexual health specialist Futura Medical (FUM.L) said on Wednesday revenues would be delayed by about a year after a manufacturing change to its erection-enhancing condom, sending its shares down 20 percent.

The delay is because marketing partner SSL SSL.L has decided to relocate condom production to Asia, which will mean the company will have to provide additional manufacturing data to the EU regulator before being granted the CE mark required to sell the product.

“Probably (revenues will be delayed by about a year), maybe not as much as that but certainly it’s been delayed this year because of the launch,” chief executive James Barder told Reuters in an interview, adding he did not expect to need to raise more cash.

Futura shares were indicated down 18 percent at 21.125 pence at 1000 GMT.

The company is expected to become profitable soon after the launch of the condom. “We don’t burn a lot so I’m hoping it won’t take much to make us a profitable company,” said Barder.

He said he expected to announce at least one and possibly two further partnering deals by the end of the year. “I would hope that we’d be making certainly one if not two announcements by the end of this year,” he said.

Also on Wednesday, the company reported its net loss narrowed to 1.9 million pounds in 2008 from 2.3 million in 2007.

It had 780,000 pounds cash as of Dec. 31, with a further 1 million pounds equity funding raised in March 2009.

“Retail investors are behind the selling volume today, not institutions,” says Ian Wainwright, Managing Director Life Sciences Specialist Sales at Canaccord Adams, adding that SSL’s results next week could also provide a boost to the stock.

In November 2008, European authorities gave Futura a positive opinion on its erection-boosting condom, which normally leads to approval soon afterwards. [ID: nRnsa0409J] (Reporting by Ben Deighton, editing by Karen Foster and Dan Lalor)

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