Oasmia 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)
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.
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
|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|
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
- Oasmia Pharmaceutical AB Provides Updates to Clinical Program Development (Wed, Feb 24)
- Oasmia Has Submitted a Marketing Authorization Application to the European Medicines Agency for Its Lead Cancer Product Apealea(r) (Paclical(r))(Mon, Feb 8)
- Oasmia Submits Application for Market Approval of its Next Generation Anti-Cancer Drug Doxophos(r) in Russia (Mon, Jan 4)
|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.
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.
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Disclosure: Receipt of $20,000 from Star Media, LLC