Date: 2015-07-07
Type of information: Establishment of a new subsidiary in the US
Compound: new subsidiary in the US
Company: Oasmia Pharmaceutical (Sweden)
Therapeutic area: Veterinary medicine
Type agreement: establishment of a new subsidiary in the US
Action mechanism:
Disease:
Details: * On July 7, 2015, Oasmia Pharmaceutical, a developer of a new generation of drugs within human and veterinary oncology, announced that it has established a sales company in the United States, designed to generate adoption for Paccal Vet-CA1 (paclitaxel for injection), its leading companion animal therapeutic. In the United States, Paccal Vet-CA1 is indicated for the treatment of resectable and non-resectable squamous cell carcinoma in dogs that have not received previous chemotherapy or radiotherapy, and for the treatment of non-resectable stage III, IV or V mammary carcinoma (mammary cancer) in dogs that have not received previous chemotherapy or radiotherapy. These indications are conditionally approved pending a full demonstration of effectiveness. Paccal Vet-CA1 was previously distributed by Zoetis, a veterinary drug company that was spun off from Pfizer in 2013. Due in part to Zoetis’ recent announced operational efficiency program, Oasmia has determined that it will be more beneficial for the Company to develop its own marketing and sales organization. For this reason, the Company has successfully regained the exclusive global rights for Paccal Vet and Doxophos Vet, and established ‘Oasmia Pharmaceutical Inc.’, which will identify opportunities in the United States that it believes will result in overall Company growth. In order to achieve growth, the Company has already begun the process of identifying key talents in the pharmaceutical sales space with the goal of establishing an experienced and effective team. Furthermore, the Company is performing due diligence on potential products for acquisition that it feels would complement the Oasmia brand and increase exposure to its sales channel. Zoetis will be relinquishing control of the sales efforts for the Oasmia family of proprietary products, not only in the United States but throughout the rest of the world, with the exception of Japan, which is partnered with another company. Within the estimated $7 billion global companion animal drug market that is commonly based on generic human products, approximately 25% of dogs will develop a tumor during their lifetime. With 80 million dogs in the US alone, and many of their owners considering their pets a significant member of their family, the market potential for successful treatments is significant. As owners are increasingly educated regarding cancer management, Paccal Vet-CA1’s high efficacy, yet cost-effective pricing, establishes the potential for widespread public adoption. The company is similarly optimistic regarding the market potential for Doxophos Vet, a patented formulation of doxorubicin that is in the final stage of development by Oasmia, and will be submitted for the treatment of lymphoma, the most commonly medically treated cancer in dogs. During the period of the transition of rights, business and operations will continue as usual. The transition is expected to be finalized in September 2015 and the marketing activities are planned to be transferred in July 2015.
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