New US commercial partner

Futura Medical (AIM: FUM), the consumer healthcare Group behind Eroxon® that specialises in the development and global commercialisation of innovative and clinically proven sexual health products, today provides an update on its commercial partner status for Eroxon® in the US market. Further to the initial announcement on 13 November 2025 and as outlined in subsequent announcements, in which the Company stated that it was in conversations with Haleon relating to alternative, potentially third party, commercial and distribution strategies and arrangements, the Company has terminated its agreement with Haleon. The Company has also reached an agreement with an alternative distribution partner, Market Performance Group ('MPG'), to distribute Eroxon® in the US. MPG is a leading omnichannel commerce agency that helps brands accelerate profitable growth across retail and eCommerce channels and serving as a trusted partner to many leading health and wellness brands in the US.

Termination of Haleon agreement

As shareholders are aware, following a high impact launch in October 2024 and significant levels of investment from Haleon, US Eroxon® sales progress has been slower than expected. Alongside this, whilst the market opportunity is clear to both parties, its strategic importance to Haleon has lessened. Futura has therefore reached an agreement with Haleon to terminate its partnership.

Futura and Haleon have agreed an early termination fee of $1.9 million. Under the terms of the agreement, Futura has waived its right to the US patent milestone payment in exchange for the return of the US commercial rights to the Company and the rights to use all Eroxon® marketing materials generated by Haleon.

Haleon has invested significantly in the development of marketing assets, all of which will be transferred to Futura and MPG, including the existing domain names. In addition, finished product manufactured by Haleon to remedy the recent US stockout will transfer into Futura's ownership. Together, these arrangements will help support a seamless transition between the two partners and help ensure that supply returns to the US market. A Transitional Services Agreement ('TSA') has been completed between Haleon and Futura to ensure a seamless transition to MPG; MPG will take commercial control of the US market from 1 September 2026 at the end of the TSA period.

The return of the US rights gives Futura the flexibility to pursue the US Eroxon® opportunity on more beneficial commercial terms and to move forward with a new partner which can provide the focus needed to distribute and support the product effectively in the key US market.

The receipt of the early termination fee, alongside the Company's previously stated cash position, is expected to provide working capital into October 2026. As announced previously, the Board continues to actively consider a number of dilutive and non-dilutive funding and strategic initiatives to extend the Group's cash runway.

​Agreement with Market Performance Group

MPG is a leading omnichannel commerce agency delivering integrated commercial solutions that accelerate profitable brand growth. MPG's team - industry leaders from top retailers, Consumer Packaged Goods ('CPGs') and digital platforms - connects brands with consumers across the full funnel commerce landscape, delivering right-sized strategies, strategic go-to-market plans, advanced analytics, and deep retailer relationships. With clear expertise and focus in the health and wellness and personal care sectors, MPG manages multi-billion-dollar annual retail sales on behalf of its clients.

As announced in the Conclusion of Strategic Review within the Results for the year ended 31 Dec 2025, the Board concluded that Futura will move from a 'launch and step back' model focused on R&D and full out‑licensing, to an 'actively manage and optimise' model focused on a hybrid R&D and commercial approach which will provide greater flexibility, insight development and sharing and improved economic participation across markets.

As such, the Company has signed a Distribution Agreement with MPG which will commence from 1 September 2026 when the TSA period ends. This new partnership arrangement will enable Futura, as the expert in the development and global commercialisation of innovative and clinically proven sexual health products, to remain involved in the strategic direction of the product, while leveraging the local marketing and distribution expertise from a highly experienced, well-positioned and motivated partner.

Under the terms of the Distribution Agreement, MPG will be responsible for the distribution and promotion of Eroxon®, whilst Futura will remain responsible for the manufacturing of Eroxon®. Manufacture will continue to be by an existing outsourced manufacturer. Futura will retain ultimate control of all discretionary advertising and promotional expenditure relating to the brand; and will generate revenue from MPG's sales of Eroxon®, with MPG earning a commission on those sales. This new commercial model is a more attractive model for Futura because the Company will have greater control over the commercial management of the brand and its investment in future growth initiatives, whilst receiving greater returns on unit sales versus the previous Haleon out-licensed model. The Board is therefore confident that this model is supportive of the Company's current cashflow runway and will enable the Company to continue to execute the other aspects of its strategy. Following the proactive and constructive relationship and discussions between Futura and Haleon over recent months, it is not expected that there should be any disruption to existing US retailer listings or availability of stock prior to Haleon passing control to MPG from 1 September 2026.

Alex Duggan, CEO of Futura, commented:

"I would like to thank Haleon for their support of Eroxon® throughout the duration of our partnership and their significant investment into the product. 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. As such, I am delighted to be partnering with MPG in this market. MPG has a fantastic track record of partnering with consumer healthcare brands and has excellent relationships with key retailers across the US. We look forward to working with the experienced and motivated team at MPG over the coming years to address the unmet needs of those experiencing erectile dysfunction, and for this market opportunity to contribute to Futura's growth in a meaningful way.

With strong assets in Eroxon®, Eroxon® Intense and the WSD4000 female sexual health portfolio, supported by a well-regarded, experienced R&D team, I believe that this positive development will help Futura pivot towards unlocking the value of its portfolio."

Jason Reiser, CEO of Market Performance Group, commented:

"Our rapidly growing, end-to-end commercial services offering is a key strategic pillar for MPG, and we see Futura Medical as a highly valued partner moving forward. We are thrilled to help build the Eroxon® brand as it enters its next chapter in the US market. Eroxon® has a strong consumer proposition, and we see a large, untapped consumer market in the sexual wellness category that creates a compelling runway for growth.

MPG is uniquely equipped to help convert that opportunity into in market performance. MPG brings an end-to-end commercial support team of experienced operators with deep CPG and consumer healthcare expertise, and a proven ability to build brands in an omnichannel marketplace."

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