Phosphagenics in talks for TPM-diclofenac deal

Phosphagenics (ASX:POH) has commenced licensing negotiations with Japan’s Nippon Zoki Pharmaceutical covering the development of a pain relief product for the US market.

The companies are working out the terms of a licensing agreement - covering milestone and royalty payments - for TPM-diclofenac, an anti-inflammatory treatment for acute and chronic pain.

Nippon Zoki has, since March last year, been evaluating using Phosphagenics’ TPM (Targeted Penetration Matrix) drug delivery technology to produce a new formulation of its existing diclofenac products.

The company plans to develop TPM-diclofenac for the US market, where the three currently approved topical diclofenac products generate sales of around US$300 million ($287.5 million) per year. Phosphagenics has patent protection for the TPM-diclofenac formulation.

Phosphagenics CEO Dr Esra Ogru said that while it is difficult to put a timeline on product development, the company hopes that developing and licensing arrangements will be finalised by the end of the year.

“With the commercial success of diclofenac, it is appropriate to review all projects previously undertaken by the company with the aim of achieving short-term and lucrative licensing arrangements,” he said.

Dr Ogru said that initial targets could include the development of a patch to deliver lidocaine, a popular local anaesthetic. Lidocaine patch Lidoderm, marketed by Endo Pharmaceuticals, will be off-patent soon.

Phosphagenics is also using its TPM technology to develop the opioid pain patches TPM-Oxycodone - currently in trials - and TPM-Oxymorphone, which is due to enter clinical trials in 2H13.

Phosphagenics shares were trading 3.85% lower at $0.125 as of around 1.30 pm on Tuesday.