Phosphagenics’ pharmaceutical division is centred on:

• Drug delivery – enhancing delivery of existing drugs orally or through the skin
  
  
• Drug enhancement – augmenting the biological activity of existing drugs by adding a phosphate group to the chemical structure of the drug

Phosphagenics’ transdermal delivery technologies, TPM-01 and TPM-02, are the most advanced projects in Phosphagenics’ development pipeline. The first drug to enter clinical trials using the TPM-01 technology was a transdermal morphine formulation, and for TPM-02 a transdermal insulin formulation.

The route to market for Phosphagenics’ pharmaceutical products is through partnering with a larger pharmaceutical company at the appropriate stage in a product’s development so as to maximise return on the Company’s R&D investment.

The core competencies of the pharmaceutical business are generation of pharmaceutical intellectual property and translation of this knowledge base into commercially viable product candidates for the treatment of human conditions and disease.

Phosphagenics’ strategy is to capitalise on its proprietary technology through joining its resources and development capabilities with co-development partners or licensees.

The objective of any development or marketing agreement entered into is to generate revenues from three sources:

• milestone payments and development fees during the pre-marketing phases of product development;
• royalties on product sales by partners; and
• manufacturing and supply of product to partners, predominantly of the phosphorylated delivery compound.

Phosphagenics choice of development products is based strictly upon the market opportunity and the overall commercial viability of each individual drug candidate, including assessment of the current and expected competition for the product, the cost, timing and degree of difficulty to commercialise the product, the patent status of the drug compound and the market size of the drug to be developed.