A new condom that aims to enhance erections may also lift earnings and buyout prospects for unprofitable U.K. drugmaker Futura Medical Plc. (FUM)
Durex condoms made by partner Reckitt Benckiser Group Plc will contain a dose of Futura’s Zanifil gel inside the tip, boosting blood flow within the penis. The product results in firmer, larger and longer-lasting erections for men who may find wearing condoms challenging, according to Futura.
Premium pricing may help the condom generate global sales of 150 million pounds ($235 million) annually within five years, tempting Slough, England-based Reckitt Benckiser to keep all that revenue for itself, said Daniel Mahony, who manages $300 million at Polar Capital in London. Reckitt Benckiser, the maker of Lysol cleaners, doesn’t usually agree to sales-sharing accords, which makes it likely takeover talks are under way, said Lala Gregorek, an analyst at Edison Investment Research.
“It’s essentially Viagra in a condom,” said Mahony, who owns shares of Guildford, England-based Futura. “I wouldn’t be surprised if Reckitt tries to either buy the whole company or buy that royalty stream out at some point.”
Futura Chief Executive Officer James Barder declined to comment on any discussions with Reckitt Benckiser. While Futura isn’t for sale, he said, “ultimately, we’re looking to optimize and maximize our return at the appropriate time.”
source: bloomberg.com
1 comment:
This is funny how can viagra come in a condom.
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