Oasmia Pharmaceutical logoOasmia Pharmaceutical (Nasdaq: OASM) has multiple key drivers in place to generate serious traction with retail and institutional investors in the near term.
The company recently raised $10 million in a U.S. IPO, has begun generating revenue, and has several late stage drugs in the pipeline. 

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Oasmia Pharmaceutical develops new generations of drugs in the field of human and veterinary oncology. The Company’s product development focuses on creating and manufacturing novel nanoparticle formulations and drug-delivery systems based on well-established cytostatics (cancer drugs which stop cell growth and division) which, in comparison with current alternatives, show improved properties, reduced side-effects, and expanded applications.

OASM shares began trading in an October, 2015 U.S. IPO at $4.06/share following a $9.5 million capital raise with Rodman & Renshaw and Joseph Gunnar & Co. lead managers.

Stock Symbol: OASM (NASDAQ)
Incorporation: Sweden
Closing Price: $2.98 (3/04/16)
52 Week Range: $2.88 – $4.49
Shares Outstanding (ADR): 34.9 Million
Market Cap: $104 Million
Float: 16.6 Million free trading shares


XR-17 Patented Technology the Key

OASM has breakthrough and patented (patent protection to 2028) technology that the company is now bringing to market.

This patented technology, called XR-17, is introduced in the video below.

OASM’s XR-17 technology:

•Improves solubility and facilitates administration of several large-market chemotherapy drugs
•Improves pharmacological profile and bioavailability of drugs
•Allows for dual encapsulation of water-soluble and water-insoluble APIs in one nanoparticle


 

Oasmia Pharmaceutical has three drug candidates that have large market potential in seven major markets (US, Germany, Italy, France, Spain, UK and Japan) as well as a number of emerging markets.

Oasmia Pharmaceutical - pipeline

Paclical is one of Oasmia’s biggest drug candidates with phase III trials already successfully completed.
In January, Oasmia Pharmaceutical announced that Paclical had been submitted for marketing authorization to the European Medicines Agency (EMA). Oasmia anticipates Overall Survival Data for this product, alternatively branded Apealea by the Company for use in Europe, during the second quarter of 2016 that it will add to the existing submission to EMA. The data resulting from this study will also be used as the basis for the Company’s US submission to FDA. Discussions of label extension are ongoing and as a part of that, a dose-finding study of weekly administration in metastatic breast cancer patients has been completed and the results are currently under evaluation.
Paclical has been fully approved in Russia and OASM is has begun generating revenue with the drug.

 OASM’s Paclical formulation contains a lower ratio of carrier vs Active Pharmaceutical Ingredient (API) which:

  • Enables higher doses
  • Shortens infusion times
  • No need for pre-medication (huge advantage over many chemo agents)
  • Reduces toxicity
  • Lowers production cost
Product Paclical Taxol Abraxane Cynviloq
Company Oasmia

NASDAQ:OASM)

Generic Celgene Corporation (NASDAQ:CELG) Sorrento Therapeutics (NASDAQ:SRNE)
Infusion solution Micellar solution Emulsion Colloidal suspension Micellar solution
Particle size 25 nm 10-22 nm 130 nm ~25 nm
Excipient XR-17 Cremophor EL Human albumin Poly-lactide and polyethylene glycol diblock copolymer
Dose 260 mg/m2 175 mg/m2 260 mg/m2 260 mg/m2
Ratio 1.3 : 1.0 88.0 : 1.0 9.0 : 1.0 5.0 : 1.0
Infusion time 1 hour 3-72 hours 1 hour 30 min
Hypersensitivity No Yes Yes No

The market for a vastly improved formulation of the common drugs Taxol and Abraxane is huge. Together, Taxol and Abraxane generate in excess of $1.7 Billion in annual sales. Keep in mind the market capitalization of OASM is a mere $104 million. Capturing even a small fraction of the Taxol/Abraxane market will drive the market cap of OASM much, much higher. 


 Market Potential not Priced in

OASM has had very positive news in recent weeks that I believe the market has not priced in, especially given the market potential of the late stage development pipeline the company has.

 

Q1 –2016 Filing for final sales approval for Apealea/Paclical to EMA
H1 –2016 Launch of Apealea/Paclical in Middle East & Africa with commercial partner
H1 –2016 Announcement of partner relationship for sales of Apealea/Paclical (China / Europe / US)
H1 –2016 Expecting OS data for Apealea/Paclical
H2 –2016 Submission for market approval of Apealea/Paclical to the FDA
H2 –2016 Expecting market approval of Apealea/Paclical in EU
H2 –2016 Expecting market approval of Doxophos® in Russia

And this is just the beginning. OASM’s patented XR-17 technology can be applied to other extremely successful, large market drugs to improve solubility, facilitate administration, and improve their pharmacological profile and bioavailability.

Oasmia Pharmaceutical - target drugs

This opens up enormous partnering opportunities for OASM, and could be why nearly 800,000 shares were snapped up by institutions in the most recent data. 


The OASM value proposition at current market capitalization of just $104 million is:

  • A very late stage development pipeline of patented drugs
  • Just beginning to generate revenue
  • Enormous market ($1.7 billion by less effective competitors) for just the first drug to launch, Paclical
  • Recent capital raise of $9.5 million = no need for near term dilution as multi-drug commercialization progresses
  • Multiple positive catalysts for the remainder of 2016
  • Increasing investor awareness (and likely analyst coverage) as positive catalysts play out

 

For further due diligence read: Oasmia Pharmaceuticals – Advancing Nanotechnology Based Chemotherapies.

 


 

Gary Anderson sig.

Please read disclaimer
Disclosure: Receipt of $20,000 from Star Media, LLC

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