A company that’s poised to disrupt the nasal drug delivery market has signed a licensing deal with Avanir Pharmaceuticals (Nasdaq: AVNR) valued at $110 million. OptiNose’s drug delivery system in Phase 3 development to treat migraine headaches with Sumatriptin uses the power of breath to more effectively deliver liquid and dry forms of drugs through nasal passageways.
Yardley, Pennsylvania-based OptiNose received an upfront cash payment of $20 million and is eligible to receive some shared development costs and up to $90 million more if it reaches additional clinical, regulatory and commercial milestones. It also stands to get royalty payments from Avanir based on net sales in North America.
Companies have sought alternative delivery options because of complications from some conditions, such as nausea that make taking oral medication undesirable. An aversion to needles is another reason. In addition to improving the effectiveness of the drug, an indirect benefit of these drug delivery alternatives is to improve adherence.
Yardley, Pennsylvania based OptiNose came to the Philadelphia area in 2000, after it was founded in Norway the same year.
Among OptiNose’s current investors are Avista Capital Partners, Entrepreneurs Fund and WFD Ventures.
Longterm, OptiNose sees its approach to drug delivery as improving treatment for central nervous system disorders because of the possibility its technology could be used to overcome the blood brain barrier, according to its website. It also believes its technology could be sued for vaccines.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Greg Flesher, senior vice president of corporate development of Avanir Pharmaceuticals said in a company statement: “OptiNose has developed a unique device that has the potential to transform the clinical profile of the leading migraine drug, resulting in a new product candidate that we believe can significantly improve upon the current treatment options.”
