OrbiMed Advisors LLC has invested $4.3 million in Otic Pharma Ltd., which is developing treatments for diseases of the ear. The company's treatments are based on foam, called "Foam-Otic", rather than drops. Foam-delivery is better than drops, because foams stay in place longer, improving the efficiency of the active pharmaceutical ingredient, such as an antibiotic or steroid, enabling lower and less frequent doses.
Ear infections are among the commonest of childhood illnesses, and Otic Pharma is targeting this market. The company is also developing veterinary treatments for pets, such as dogs, which tend to shake off any ear drops. The company estimates the market for its human foam-delivery drugs at over $1 billion, and the veterinary market at $500 million.
Otic Pharma chairman Dr. Gad Riesenfeld and Dr. Eran Eilat founded the company Peregrine Ventures' Incentive Technological Incubator in Ariel. It has raised a few million dollars to date from Peregrine and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) chairman Philip Frost.
Otic Pharma is about to complete a clinical trial on 105 patients to test the safety and efficacy of Foam-Otic at reduced dosages and lower frequencies of the drug, compared with ear drops. "We do not yet have the results of the trial, but, on the basis of smaller scale trials and preliminary information we've received, we are pleased by the safety and efficacy of the product, Otic COO Dr. Rodrigo Yelin told "Globes".
The trial is not based on US Food and Drug Administration (FDA) protocols, but is intended as the basis of a larger trial with hundreds of patients, after which it will be possible to apply for marketing approval of the foam.
"The financing from Orbomed will enable us to move forward on the product's development and registration," said Yelin. "At some point, we'll probably have to bring in a marketing partner, but as we move toward market ourselves, we can get a better deal."
The financing will enable Otic Pharma to begin a trial for its veterinary product. A possible partner for Otic is Perrigo Company (Nasdaq:PRGO; TASE:PRGO), which specializes in dermatology drugs on the brand-generics border, which can be marketed to consumers. However, there are several other companies developing foams for other bodily orifices, such as the nose.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2012
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