Oxford Pharmascience hits stumbling block with OXPzero

The AIM-traded firm said the two variants leverage its proprietary OXPzero technology platform, which aims to mask the bitter taste and irritation of non-steroidal anti-inflammatory drugs (NSAIDS) and to provide reduced risk of gastrointestinal side effects.

Ibuprofen and naproxen are the two dominant NSAID molecules in the pain relief and anti-inflammatory sector, with combined worldwide sales in excess of $5bn per annum.

Oxford said it has initially held discussions both directly and through a major investment bank advisor with several global OTC pharmaceutical companies with strategic interests in the NSAIDs market, with the aim of securing a partnership deal for the OXPzero platform.

It said these discussions have confirmed that the OXPzero technology, and particularly its gastrointestinal safety profile, would be a potentially disruptive and very valuable asset to OTC markets.

“Feedback received to date, however, indicates that these OTC companies would prefer to see the assets further developed and to have more clarity on the regulatory pathways for OTC product approval, before committing to a partnership agreement on either asset or on the platform,” Oxford’s board said in a statement.

“Discussions are ongoing in respect of the taste-masking applications of the technology as described below.”

The company said it is considering its next steps in terms of development and regulatory work, and will make further announcements on the processes as appropriate.

“Oxford Pharmascience remains well-funded to complete this next stage of work, with cash balances as at 30 June 2016 of circa £22.1m before receipt of research and development tax credit of £0.74 million,” the board confirmed.

It added that during discussions with prospective partners, it became clear that in OTC markets the taste-making benefits of the OXPzero technology are of significant interest.

Oxford said there are multiple opportunities in the area, including taste-masked formulations for pain and fever - all areas in which paracetamol-based formulations currently dominate due to the ease of masking the taste of paracetamol.

“While a platform licence deal is less likely in the near-term, we believe the key benefits of our OXPzero Ibuprofen and OXPzero Naproxen compounds are now better understood in terms of their application across multiple differentiated products and categories,” said Oxford Pharmascience CEO Marcelo Bravo.

“Ongoing partnership discussions involving the taste masking benefits of the OXPZero technology have the potential to demonstrate commercial validation and Oxford Pharmascience will update shareholders on this and all material further developments in due course.”

The company also announced that non-executive director Anand Sharma had resigned from the board with immediate effect, to concentrate on his “other professional and personal commitments”.