GSK returns rights to Futura Medical's ED gel

Drug major GlaxoSmithKline has returned the development rights to MED2002, a topical gel for erectile dysfunction, to its originator, fellow UK-based Futura Medical, sending shares in the latter down 30% to 41 pence on the day of the news, May 15.

According to Futura, current priorities within GSK meant that they were unlikely in the near future to approve a marketing agreement for the agent, which recently completed Phase II trials. The companies' negotiation over global distribution rights for the provision of pain relief using Futura's transdermal delivery technology is unaffected by this decision on MED2002.

During the period of exclusivity with GSK, Futura says it has continued to advance MED2002 in key areas such as onset of action, safety profile and esthetics, and the firm says it will reopen discussions with potential licensees. Analysts at Edison Investment Research noted that, while Futura is trading at an all time low. The pull-out by GSK, which co-markets Bayer's ED drug Levitra (vardenafil), could be viewed as a buying opportunity rather than a setback as the stock could get back on track if the firm secures another partner. James Barder, Futura's chief executive, said: "whilst we are clearly disappointed by the decision, the progress in the development of MED2002 has been significant. We are therefore confident in our ability to secure new commercial arrangements on favorable terms for the final development and marketing of MED2002."