Futura Medical plc

Good morning and welcome to the Futura Medical PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses which is appropriate to do so. Before we begin, I would like to submit the following poll. and I would now like to hand you over to Interim CEO Alex Duggan. Good morning.

Good morning and welcome to the Futura Medical 2025 Interims presentation. Many of you will have seen board changes announced over the last three months, and I'm the new face to the team. I'm Alex Duggan. I'm appointed as the interim CEO since August of this year. I've got 25 years experience working in consumer healthcare and pharma businesses, taking leadership roles in both small and mid-sized public and private businesses. My remit as interim CEO is to conduct a full review of the performance and the strategy and put in place strategic and leadership plans that best benefit the shareholders and all other stakeholders of Futura. Before we start today, can I just draw your attention please to the disclaimers shown here. These along with the presentation and the recording today will be available on our website for you to review. H1 has been a very active time for Futura on many fronts. So our agenda today is perhaps a little longer than normal for our interims, as we'd like to update you as much as possible on where we are. First, Angela will provide us with an update on the first half financial update and trading update. Then I will follow giving some reflections on what I've seen in my first 60 days and an update on our market launches and a summary of our focus to improve business performance. Ken will then talk through our MPD pipeline and an update on the status of the patents. And after the summary, we will answer any questions that may have been received during the presentation. So just before I hand over to Angela to provide the financial update, these are the key outtakes for today. First, we've seen further market launches during H1 in seven countries, but we are seeing challenges around sustaining consumer uptake. we see in all markets is the initial trial seems strong which is very positive but for various reasons repeat underlying sales are not coming through as expected this has had a direct impact on our supply volumes and our royalty streams and so the full year 2025 performance is likely to be significantly below market expectations As announced on my appointment, a strategic review has commenced with initial findings coming through now, and some of these findings I can share with you today. As per the recent R&S on the 19th of September, the shift in performance versus prior expectations has put the company in a challenged position. However, the board does remain confident that there is value in the group assets. and development plans for both the Intense and WSD4000 development products will continue to progress. Although there is always a risk in any R&D project, early indications for these two projects are quite positive. Evidently, my job, and that of the board, is to ensure that we do all we reasonably can to protect our stakeholders and shareholders to derive as much value as possible from our current product and from our new development products. I will come back to this again, but first I'd like to hand over to Angela to cover our H1 financial update.

Thanks, Alex. So let me take you through the results for the first half of 2025. We generated just over a million in revenues during the period. Around half came from royalties in the US, nearly half from sales across the EU, including the UK, and a small contribution from LATAM and the Middle East. The lower sales this year reflect the channel fill and the stocking that took place during 2024, which our commercial partners and customers are still working through. On those sales, we delivered an initial gross profit of 0.7 million. However, given the continuing lower demand, we took the prudent step of providing for potential inventory obsolescence on stock that was manufactured last year to meet minimum order quantities when we transitioned to our new supplier. This provision was 0.49 million. R&D spend remained broadly in line with last year, and that was focused on progressing intents and WSD 4000. And our core G&A costs were 2.6 million. This is down from 3.4 million last year, showing the benefit of some cost reductions we've put in place. But that said, with lower demand expected in the US, we reviewed our manufacturing assets and identified indicators for impairment. As a result, we have impaired the US plant and equipment and provided for the final instalment due later this year, and this has resulted in an exceptional charge of 3.6 million. After these items, the loss after tax for the period was 6.6 million. On a pre-exceptional basis, that loss was 2.6 million. If you strip out the 0.64 million of non-cash share base payment charge, the adjusted loss after tax comes to around 1.9 million. Cash at the end of the period was 3.69 million. If we then move on to the trading update released in recent weeks, this provided further clarity on revenue expectations for the full year, which we have confirmed will fall short of market expectations. Alex will talk in more detail about market specifics later in the presentation, but in summary, we continue to see slower in-market sales of Iroxon than both Futura and our commercial partners had anticipated ahead of launch. Based on initial partner forecasts, 2025 sales were expected to reach around £5 million. This included a $2.5 million milestone payment, approximately £1.9 million, linked to the granting of the US patent. We now expect that to be received in 2026, and Ken will cover off the US patent point in more detail as well. In our recent announcement, we guided that the four-year sales for 2025 are now expected to be between 1.3 and 1.4 million. As part of that same update, we also disclosed that cash at the end of August stood at 2.7 million. Under current plans and taking into account the cost reductions we've implemented, as well as the cost of implementing those measures, this provides runway into January 2026. We are actively exploring a number of commercial and financing options to extend this runway, and we will update the market when we're able to. I'll now hand you back over to Alex.