Pain management drug company PharmStar Pharmaceuticals (PINK:PHAR) has entered into a distribution deal that brings its liquid aspirin closer to reaching the market.
Wilson, North Carolina-based PharmStar’s agreement with wholesale distributor Alert Medical Supply commits Alert Medical to order $5 million of PharmStar’s over-the-counter drinkable aspirin over a three-year period that starts when production of the Aquaprin product begins. PharmStar expects Aquaprin production to start in the third quarter of 2012.
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The distribution deal also comes with an unspecified Alert Medical equity investment in PharmStar. Alert Medical could expand the distribution agreement to include other PharmStar products as they become available. PharmStar does not yet have any revenue. Aquaprin is the company’s first product.
Aquaprin is a liquid derivative of aspirin. PharmStar’s formulas will be sold in foil packets carrying crystals that are designed to dissolve in water. PharmStar claims the liquid product enables the aspirin to be absorbed into the bloodstream up to 10 times faster than other over-the-counter pain relievers and with little stomach irritation. Aquaprin needs no additional U.S. Food and Drug Administration approval because it is considered an “effervescent aspirin” that falls under existing rules for OTC analgesics.
PharmStar said that Aquaprin can be used for pain indications such as headaches and migraines as well as for cardio-protective applications. The company estimates the pain reliever market represents $10 billion in annual U.S. revenue; $30 billion worldwide. While it is a large market, it’s a market served by multiple established products and PharmStar will need to make its own mark within that already crowded field.