Futura Medical plc (FUM) Earnings Call Transcript & Summary

Good morning, and welcome to the Futura Medical plc Investor Presentation. [Operator Instructions] Before we begin, I'd like to do the following poll. And I'd now like to hand you over to James Barder, CEO. Good morning, sir.

Thank you for that, and welcome everybody. First of all, just the usual disclaimer. And now -- very welcome, very pleased to -- myself, I'm James Barder, I'm the Chief Executive, and I'm joined with -- by Ken James, Executive Director and Head of R&D; and also Angela Hildreth, who is Finance Director and COO. First, I'm just going to give you -- well, Ken and I are going to give a brief summary -- if you haven't, well Ken and I suggest that you -- on Thursday, we did an investor seminar, which is now up on our website and I strongly recommend you review that. Without further ado, let's move on to a short presentation. It's a little bit about Futura. We are an [ amnesty ] company. We describe ourselves as a virtual organization. We employed 15 staff, including directors. And so we therefore have a pretty low overhead base. We have a significant outsourced infrastructure. We use external contract manufacturers, and we have on our books around about 30 consultants. We can't plug it in at a bit like light [ bulbs ] as when we need them, it is most efficient way of optimizing that value. Our real core asset is DermaSys, which we describe as basically supplying skin care 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 MED3000 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 3 years 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 core product, which I'm sure most investors would be aware of is MED3000. This is a topical job for the treatment of erectile dysfunction. It is now both EU and FDA approved for available without adopted prescription in the U.S. It is also approved in around about 5 Middle Eastern countries and we do expect over the next year, 2 years for the approval to roll out through many other countries throughout the world. Key differentiator with this treatment is a fast onset of action and the claim that we can make is it helps you get a erection within 10 minutes. So just a sort of brief summary of sort of key development and commercialization milestones that we've done over the last 2 years. Candidates run into 2 clinical studies, FM57 and FM71, which helped us initially get EU approval more recently, the U.S. FDA approval. The key reg approvals -- commercial distribution agreements are in place now with 4 different companies. In Southeast Asia, we have Menarini. We do also have a deal that was done with [indiscernible] but we are currently examining exactly what we would do with that as it's not progressing at the speed that we would like. In the Middle East, we have a deal with Labatec Pharma, and we've already indicated that we will be shortly launching in the Middle East or they will be rather. In Europe and including the U.K., we use a company called consumer -- Cooper Consumer Health. And then finally, in Latin America, we have a deal with a company called m8 or moksha8 Pharmaceuticals. We've already had initial launches in the U.K. and Belgium both retail and online. And there are further launches 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 outlook for us, very much now that we've got U.S. approval is to find a U.S. commercial partner. We've got a number of discussions that are progressing and when we can say more to shareholders and we obviously do that. Key thing here is that this is the first over-the-counter topical treatment in the U.S., which is a huge milestone. In addition to, obviously, the U.S. commercial partner including [indiscernible]. 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 products, and that is progressing well. There will be further launches under the brand name Eroxon over the next 12 months and beyond. And in particular, we'll be focusing on our pipeline, not only on what we've already disclosed before, but also where we can maybe bring more innovation from that. We're already getting from our commercial partners how can we extend that, how can we develop basically a new category. Kenneth?

Good morning, everyone. These are the key attributes of Eroxon. [ Steady ] improvement as James has mentioned. We've run 2 clinical studies, FM57 and FM71. In both of those studies, the data was very consistent between them. And we show that Eroxon product is effective in mild, moderate and severe ED. We put a mix of etiologies into each of those studies. Psychological origin, organic origin and the majority of subjects in those clinicals and the mix of both of those. Across age range of 18 to 70. Key we feel to the success of the product is the differentiated consumer claim hope to get an erection within 10 minutes, which is now approved in not just the EU and the U.K., but the United States importantly. And the importance of that is that it allows spontaneous intercourse 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 30 to 60 minutes to work. So it's the key differentiating claim. And that 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 experienced 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 U.S. where we are the first meaningful erectile dysfunction product to be over the counter.

And then finally, 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 research was conducted last year in the States, but there are a few more slides which Isabelle went through last week. So again, I'd urge you to look at that. But this is basically a 5-year launch plan and peak sales for the U.S. at high [indiscernible] tube and we're looking at around that $400 million. Again, that was an IPSOS research that was done back in 2022. We've done a similar one back in 2017 and the numbers remain consistent in both those different researches. That is kind of -- that concludes the slides that we're going to go through. We've deliberately kept it pretty short and sweet to enable investors an opportunity to ask us questions.

Perfect. I'll just bring your cameras back up now. [Operator Instructions] And Angel, if I could just ask you to read out those questions and what I'll do is I'll pick up at the end.

No problem. Thank you. So the first question is for you. Kenneth James, when will the FDA approval process be completed?

Well, I think most of the audience know that we did get approval on the 9th of June, late at night in the U.K., at the end of the day, in the U.S.. Actually has been more precise for de novo medical devices, what FDA talked about it's granting marketing authorization for that effectively its approval. So that's been achieved.

Okay. So next question, ignoring the potential bogus reviews on Amazon and Boots. What percentage of sales have been returned for a research. Have you got this data or just the disclaimer of trying 3 to 4x to get the effect diminish potential returns?

Yes. I mean we've had some complaints in maybe this way of describing it. We haven't issued any refunds at all, I stressed there. It's not our responsibility. It's Cooper, but we work very closely with them -- to my knowledge, we have not refunded anybody. As far as [ letter ] is concerned, I mean, you're dealing with 0.9%. That's sort of -- I mean, we're talking of very, very few complaints based on the volumes we sell today. .

Next question. Given that presentation alluded to 1.9 million sales. So I think the person who is asking the question is referring to the presentation at Isabelle gave on Thursday. Was or John, I think maybe as. Was this just U.K. or U.K. Belgium combined. And how your sales compare between the Belgium smaller pharmacy outlet model and the route taken in the U.K. of the sole distributor on the high street.

Okay. I mean I can't recall the exact numbers that John gave. But certainly, John was there. He is the Marketing Director. [ Suiter ] were appointed by Cooper who have European and U.K. and Swiss rights. So he was specifically talking about U.K. As far as Belgium is concerned, it's going pretty well there, not quite as well as the U.K., but then they approached -- Cooper approached the marketing there in a different way. As we said initially, that these are sort of big full test launches to gain key learnings from that of how different people act. But basically, they're happy with both Belgium and the U.K. Angela -- no question?

Yes. Yes. I think just to add to that?

So Belgium, let me say this -- is in addition to.

Yes. Belgium is in addition to [ 1.9 ] but we got very little data to come out .

We've got little data coming out yet. And it's not so -- and it is unlikely we'll get start working on adding one country from the next. I mean I wouldn't make the point that we expect in some markets, Eroxon will sell better than others. And that's just culturally a couple of differences from one market to the next. But it is unlikely we are going to actually get individual breakdown from one country to the next, that will be more per region.

Okay. In the presentation, I think this is the one where Isabelle gave the presentation, a figure of 86x per year usage is mentioned on referenced in the U.S.A. If this is the expected average in the U.K., too, then there should be ample data of development or repeat prescriptions that we need to clarify by that as this would be a pointing to repeat sales approximately every 17 days or at least every 3 weeks.

I'm not quite sure what the question is...

So will we expect to see repeat purchase is subject.

Well, we already know that we need to see repeats. The frequency I think certainly the numbers that we were -- 86 was the IPSOS research, and it varies from different forecasts, different models down to different models

Yes. And the $409 million opportunity was actually calculated off the back of 55x. So a lot of the Eroxon research is assumptions that have been made under different scenarios.

I mean, certainly, again, there have been a number of different massages [indiscernible] asked by commercial partners and those that we're also in discussions with. And I think 50% or 44% [indiscernible] probably a more realistic number of frequency of intercourse where all people use the treatment. So going back to the gentleman or lady's question. In other words, 1 pack would last 4 weeks. So surely, we should start to be seeing some data in that. Again, it's a question of tracking the data. It's not always easy to do that. We're working with Boots and Cooper. But the easiest way to track it is usually where somebody has a Boots Advantage Card. A lot of surprising is that women intend to have the card, men don't. So we are getting some data. It's still early days, but certainly I think, Cooper, we are pretty pleased with the [indiscernible].

We've said we're probably going to understand that a bit more clearly in September.

In September, Yes.

Okay. So moving on to something completely different, altogether away from sales. It appears that a Eroxon trademark was registered by Versailles B.V., a Netherlands based outfit back in 2022. Interestingly, another product, [ Arosponse ] was registered around the same time. Is it a Futura project that is being evaluated.

Okay. Well, the first part of that question, Versailles B.V. is a subsidiary Cooper. So that's why the market is gone into Cooper's net at the moment the way that we -- it's just the way we operate with Cooper, [indiscernible] not anything.

It may have been a name that people were testing at the time before their market research showed that Eroxon was their tested name.

That could be it. But certainly, I mean, yes, and our teams that we're working on, the [ Arosponse ] would not be probably the name but just trip of the tongue. [indiscernible]. Next question?

Another for you. Do you expect to have to run more trials in the studies to get authorization / 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've identified a group of individuals [indiscernible] on behalf in Australia. But beyond that, when we file, there's a relatively straight forward quick process, we think within a couple of months, that could lead to improvement in Australia.

And I think we -- I think I mentioned last week, that we're planning to file in Australia in the next few weeks.

Okay. And what is a realistic timeframe to launch Eroxon in the U.S. market, James?

Well, first we need to have [indiscernible] that. Those discussions are progressing. And then realistically, it's a difficult question to answer because it does depend on the time of year, it does depend on a commercial partner because whereas certain discussions we're having with a number of commercial parties, they want to 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 lives. So it's difficult to be too specific on it. I think all I would say is if you look at the deal that we did with Cooper. We signed a deal in May, at one market following year. So that's probably realistically [indiscernible] lines that we're looking at. If we can do it more quickly or commercial partners and do it more quickly, then obviously, that will be looked at, but we need to first of all, close on to deal with the U.S. partner.

Okay. And I think actually, there's another question coming through in relation to giving some color on manufacturing ramp-up plans.

Okay. We've already got 2 partners.

James' computer got asleep. You just need to unlock your computer.

Sorry, I think we got cut, can you hear us? .

Yes, we can hear you.

Just 1 more on just -- yes.

Sorry about that. Okay. So the question was, yes, manufacturing. We already had 1 manufacturer that is producing product. And we are currently looking at several other sites. We're in advanced discussions on that, both in Europe and also on the southern bond in America.

That will somewhat depend on the commercial partner that we choose as well because some commercial partners have manufacturing capability [indiscernible] some of them would need to outsource that. .

So certainly, we have sufficient capacity based on projections for the next couple of years, excluding the U.S. but certainly for Europe and elsewhere. But we want to -- as I think I said earlier, one of 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 unforeseen situation, market fall whatever. So that is progressing well, and we'll update the market more as and when that happens.

Can you please tell us how fast do you intend to roll out the launch of Eroxon in the other European Countries?

Well, obviously, it's not on us to start with, I think it is important to emphasize that in all instances, we remain as a legal manufacturer, but actually marketing the marketing costs, which are not in considerable the plans where they launch our responsibilities of the different distributors. And again, with all of the market stress, even though we have given an exclusive rights, there are certain key indicators, key performance indicators that the different commercial partners from us do around especially launch commitment around spend for launch and so on and so on. We had a huge amount of interest before we can successfully got FDA approval. But since then as well, for us, the key thing is finding commercial partners who know how to build the incredible over the counter brand. But if you like, hasn't had a legacy for and is a prescription product. So even though we've had a run exactly hundreds of approaches, it is making sure you're dealing with professional companies who understand the sector, know how to build a brand, which also takes a bit of time. So I lost question on the Europe -- Road on Europe. So at the moment, as I said earlier Cooper very much taken all the learnings and there are 3 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, and we have we started. 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 circumspect in this. And we're obviously -- and we appreciate investors want to know, we will let investors know as soon as we can do, but that will usually be parted that rather than before.

I think it's fair to add, James, that the launch in the U.K. has gone very well so far. And there's certainly no lack of enthusiasm in other countries. In fact it's still the old way in everything.

Okay. I think this is one for me actually. Futura receives undisclosed transfer price on delivery of orders to Cooper rather than on in-market sales as noted in the Trinity Delta like us today. Can you explain on whether this means that there was some revenues based on volume? Or is there also a share of retail price as well, please? This is very simple to answer. As the legal manufacturer, we contract with the third-party contract manufacturer who manufacture Eroxon. We then mark that up and we sell it directly to Cooper, so they buy it from us. Clearly, it is depending on volume because they know that all that stuff they order, the more or less that we received from them. But in terms of how they then distribute that and price that in the market, we've already 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 trigger not on the retail price, on the wholesale price, not on price that the distributor is getting before the retailer that has the 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 and only way that is at times it's not easy to check exactly what the wholesale price has been achieved in some markets. And therefore, the time it's easy just to take it on the transfer plan. And I'd say -- also say that there is one other advantage of this as a transfer cost, as volumes grow, it gives us greater leverage with the manufacturers. And so earlier, if we've got to 3 manufacturers then there's an opportunity that has manufacturers, 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 where we will get benefit from.

Okay. So a couple of finance questions that have just come in and I'll probably -- at 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. Yes. It's not something that I can answer specifically. We are unable to give you any forward-looking statements. We will be guiding analysts such as Trinity Delta and our broker analyst Liberum. We will be guiding them in a bit more detail towards the end of this year as we have more information in terms of launch plans, volumes, pricing, et cetera. But I'm afraid that at the moment today, there's not a lot of color I can give you on that. And then the second financial question is what's the planned R&D spend over the next 12 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&D spend. That will be something that we will guide the analyst when we are ready to. You heard earlier, James talked about innovation as we work on and we're currently evaluating those plans. . In conjunction with our commercial partners 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 $4.5 million of something being received. In addition to the cash balances that we already have, in addition to the estimated GBP 1 million R&D tax credit, which we're expecting imminently. And in addition to quite conservative revenues that we are expecting coming through. We have said that we have cash visibility into 2025. And when you think about the kind of the value inflect in events that are coming between now and then, that is long enough for us to secure a commercial partner that is long enough for us to get clarity around U.S. launch and U.S. launch time lines, that thing for us to understand how the rest of Europe is going to be rolled out and when the other commercial partners are starting to roll out their launches. And also bringing other commercial partners award the territories, the geographies that we don't currently have. So looking at Australia, Canada, for example, that's definitely all work in process. So I think from a funding perspective, sorry it is a long winded answer, but it all comes back to being very comfortable on our cash position at the moment. Next question is once launched in the U.S.A., will the company consider a dual listing?

Yes. That's an interesting question. I mean we are still a tiny company as far as what the U.K. level and the U.S. market is concerned. Nevertheless, as the U.S. launch proceeds, we do debt income or relevant more U.S.-centric, which is is by far the biggest market. I think what I would say [ AHPs ] current been very, very focused on getting the launch -- sorry, getting the, obviously, a product approved in Europe, the U.S. and then commercializing that. And as that progresses, absolutely, we're going to look at a number of different options, and we want to have the best way to deliver maximum value for shareholders. And the U.S. listing, I mean, certainly, it's one of many things that we can consider. So depending on what we consider the glass half full, glass half empty, you can interpret that how you like. It's certainly not being rolled out , but if be so it's slightly more that we want.

Okay. Got a couple of questions around the slide's not been shown on the recording from last Thursday. Can other investors have access to all of the information at the same time. Yes, leave it.

Yes, leave it. Certainly it was the intent and if they were not, we will [indiscernible]

The next question. We've talked about our timeframe with U.S. launch, if we're safe to assume this is likely to be 2024 rather than 2023.

[indiscernible], commercial probably, yes, I think that's more likely.

Has the company considered an acquisition of female health companies or partnerships with the likes of Ovoca Bio, who were also listed, which would be a brilliant fit for firm.

Again, I'll get back to myself, on the question around the U.S. But we've been very, very focused on what we are trying to deliver on and we've got a very good team here. And I think there are a number of things that we could look at. Just never heard of them too.

[indiscernible] I think it's that -- Yes -- No. They currently running the Phase II 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 a prescription. It's pharmaceutical. They're not devices, they're pharmaceutical. I think that they're focused on central nervous system and anti-depression. And I think -- actually, we probably not the right -- we have looked at female sexual health. But notably, yes, for some reasons, it's a lot more complicated than it can .

Yes. I think you can say that without putting 2 final points on it. I think that the female market for sexual health is very poorly served. It's in relation to male products. With male products, obviously, the PDE5 inhibitors, the oral medications have been around for a while. And they did it for a long, long time of a very, very effective therapy. Of course, now we have the Eroxon coming along which we're very optimistic about. But in the female market, products tend to be very effective and have high side effects as a generality. So if we look at partnerships, we also have to bear in mind those factors and also there are restrictions. So let's not say that we're neglecting this area, but at this point in time, partnering with a company that's offering a product that's not very effective with high [indiscernible] not really on our wishlist.

I think I would also add that as a company that has relied on the support, and we've got 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 saying to the board will be fairly [indiscernible] plunges back into debt or loss-making situation by taking on early-stage unproven products from [indiscernible]. Next question.?

We have noticed that Cialis launched sales together at Boots around the start of June, noting that the marketing was geared towards the couple, do you think this is a coincides or do you feel it's in response to the Eroxon marketing launch?

Actually, if you look at the way that Cialis is marketed in the U.S., it's always been a product that is geared towards the cover, so to speak. However, when you look at its therapeutic profile, it's very similar to Viagra. It takes typically 30 to 60 minutes before it starts working. So the fact that you can't use it for spontaneous intercourse, is a limitation, which also applies to Viagra. Also, the products are behind the counter in the U.K. And if you wish to buy that product, you have to go through a pretty significant questionnaire which can be up to 40 questions that have to be answered before the pharmacists will give you the product, that's not a limitation exist for Eroxon. So it's slow in action, it takes overcoming a mental barrier to go to the trauma or having to answer all these difficult questions before we are allowed by the [indiscernible] in the U.K.

I think I'd also add that certainly, in all the advisory meetings we've had with, [indiscernible] they consistently say, if you can treat a couple, the efficacy of all products is better. So it is no great surprise that Cialis is focusing on treating the couple as opposed to an individual. Yes.

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 the share price is not high enough. I suppose we're a little disappointed with where the share price is at the moment. I mean the market is not in a great place. But I think we've done pretty well in last 18 months, 2 years, and I think we're pretty confident that that will progress to a number of other things that we're working on. Shareholder base, yes, we want 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 a conscious and [indiscernible] will be looking to expand.

Are there any plans to launch in high population countries such as India and China?

I mean, yes, we had a significant number of approaches in both markets. As I said earlier, we do have a deal with [ Kohei ] in China, which we are currently exploring, is not progressing as fast as we like. We certainly know that as far as China is concerned, we will need additional chemical work. India, I am not sure at this stage. The focus has been very much at this stage, securing a U.S. partner. And other markets, secondary to that the U.S. is by far the biggest market in the world, both in healthcare terms but also in erectile dysfunction. So that has really been our primary focus, and I cannot touch on earlier. So absolutely, we want to have a global distribution, and we've got a number of discussions going on. And we'll update you on that, that's the one we can do that.

If you chose listing was moved from AIM to main market, will the company attract more institutional support?

Well, I suppose an answer that is no different to the other question on dual listing. It's -- I think the board is going to take a pretty open minded approach and what we'll do next. What we clearly can do is drive liquidity, drive value, which is in everybody's benefit but no decision has been reached on that at this stage. We move from aiming to market or ceratin pros and certain cons, certainly [indiscernible] IHT benefits. And there is time regulation. So it's certainly at the moment, it has not been our focus, our focus has been driving the company to revenue to obviously break even and then to profit and obviously, especially on the commercial side, closing out deals and launching in main markets in Canada. So -- but absolutely, these are valid points and some that we will increasingly consider .

Okay. So this is a follow-up question, I think it's for me. And it's in relation to the question that we got asked around the transfer price. It has been noted that potentially discourages your marketing partner to go for margin -- sorry, encourages your marketing partner to go for margin/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. So our partners are incentivized to -- there are KPIs that they have to contractually meet in the form of advertising and promotional spend. They've also done a awful lot of pricing analysis to determine where the peak prices before volumes start to reduce. And we work very closely with our commercial partners to ensure that, that is the strategy. So that doesn't really answer the question, but I think we are comfortable that that is not a strategy that our commercial partners will undertake given the contract that we have in place with them.

But I think what I also add is that when we are negotiating with different commercial partners, we have a pretty good idea of what we know what we thought on market could support from a retail price. And we can't factor that into whatever the transfer price was. So that side, we know what the price is fixed and if we can drive down the cost of goods of manufacture, then that will increase our margin [ quid pro quo ] if they can get a feed more elsewhere rather than [indiscernible] Again, as you get more of a global market, if somebody tries to determine market and charge a lot more, you're going to start to struggle in different parallel imports coming in.

Is it suggested that Eroxon discourages oral sex due to taste, is this correct? And if so, can it be countered?

I don't think that the product tastes bad, and we understand that people are using it for oral sex. But I also think it's fair to say that given the way the product can balance development, it wasn't optimized in terms of play before oral sex. So that might be an area that we look at in the future, to be honest. But I think most people who taste it find it fairly neutral and there's no reason why they couldn't use it that way. .

And then we've got 2 questions in relation to the pain relief portfolio. And there are the plans for development continuing? Or is this dependent on Eroxon revenue hitting the threshold?

Yes. I mean at the moment, we see more value in really driving Eroxon. This is a new product category that the U.K. is unusual in that pretty much any major market in the world where 200 PD [indiscernible] Cialis, Viagra switch to the [indiscernible]. Everywhere after the rest of Europe, I think in Denmark, the U.S. 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 that biggest opportunity, the biggest value is around really exploiting Eroxon, and that's where it comes to main focus lies at the moment.

Next question. What reasons do your broker give for the share price performance today? Is the share price being held back by fickle retail investors and by perceived practice product phase by Futura. Now I think the third thing that we can say is that certainly, the feedback that we 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. Market hasn't been great for some time now. But in terms of share price performance, the feedback that we've had is that they're quite pleased by that. Not sure we can comment on fickle retail investors or what the perception is for the past product failures. It's a bit of a -- we have a quite high shareholding by retail investors, and it comes with its pros and cons. The benefit of a high retail investor base is, it provides a lot of liquidity. But the other side of that is that it's quite unpredictable. And 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 comment on in terms of intentions by retail investors. Do you have anything to add to that?

Yes. I mean we're against the backdrop of interest rates rising. I think today sort of gives you can get over 5%. People will have different reactions. So we are against the backdrop of a difficult market, aimed in flat lined -- approximately flat line in all. So -- but for us, at the moment, the focus remains very clear. It's turning Futura from a loss-making company to a revenue [indiscernible] done, but then moving into profit as soon as we can do. And I think the vagaries of the market, it will correct itself in due course. Yes, we'll be working on and focus to do everything we can do to attract more institutional backing. But just have to accept that we are in market.

But also, I think we have a clear strategy. And I think it's been apparent that we have -- we set out on the strategy. We believe that we have delivered to date on that strategy. And I think our focus is on continuing to deliver that strategy. And we can't control some of the external things that are going on in the market, but we can control performing and doing all the things that we said we're going to do. We know your comment that institutions being happy, but have current II, given any reason for reducing holdings, which has pulled the stock into a down trend. Now I'm not aware of any significant reduction from institutional investors, reducing their holdings. So I can't really comment on that, but the answer was no, we've not had -- we have not had any feedback. With Lombard having such a large holding within the company, do you see this as an issue to attract new institutional investments? No.

They have been very very supportive.

Yes. I think it's actually the opposite. I think off the back of Lombard's exercising their warrants a couple of weeks ago, especially with the market being the way that it is, to be able to come out and advise the market that we are very well funded with the biggest holdback for any of our peers at the moment, there is uncertainty around funding. We don't have that. So I don't think that's an issue. And I think that certainly is a plus point to be able to confirm that we are funded.

If there are no further questions, I think we'll draw this to a close. First of all, can I -- on behalf of our Board, thank retail investors for supporting the company. Appreciate we've had some strong retires, but the company is very well positioned there, and I think we are pretty excited with where it's going. And we look forward to interacting with shareholders in due course and hopefully some exciting updates for the remainder of the year and I turn it to Ken.

James, Ken, Angela, thank you all for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. It's going to take a few moments to complete but I'm sure will be greatly valued by the company. On behalf of the management team of the Futura Medical plc, we'd like to thank you for attending today's presentation, and good morning to you all. .