Phosphagenics partners with US firm to market OTC drugs

Melbourne-based pharmaceutical and drug delivery company, Phosphagenics, has partnered with US-based Quigley Corporation to create a new 50/50 joint venture company, Phusion Laboratories.

The new company will develop and market of over-the-counter (OTC) drugs featuring Phosphagenics' Targeted Penetration Matrix (TPM) drug delivery technology.

Phosphagenics will be primarily responsible for research and product development while Quigley will handle the bulk of the marketing and distribution.

As a part of the deal, Quigley has made a one-time payment of US$1 million to Phosphagenics and issued 1.44 million shares to the company, worth approximately $3.185 million. It has alos contributed US$500,000 in capital and US$2 million to initial development and marketing costs of the new Phusion products.

TPM is a trans-dermal drug delivery technology that is capable of delivering both small and large molecules through the dermis without irritation.

The focus on OTC drugs obviates the need for the lengthy and expensive regulatory process of bringing a new prescription drug to the market.

“Phosphagenics has invested more than nine years in developing its proprietary TPM technology," said Harry Rosen, CEO of Phosphagenics, in a statement.

"Quigley has a proven track record of distributing its OTC lines throughout the US. We see extraordinary products coming out of this joint venture for large markets such as acne or smoking cessation where irritation is a major issue.

"Our technology has demonstrated that not only can it deliver products more effectively than other commercial products but can also significantly reduce irritation. We believe our partner has an exceptional ability to effectively market and distribute future products."