Equity Research Nosa Plugs: Drug Delivery patent submitted

Carlsquare Equity Research is positive regarding the recent news that a patent for the drug delivery technology has been submitted. Furthermore, more information was shared regarding the different indications being tested. Among others, drugs for Alzheimer’s and epilepsy were tested.

Drug Delivery patent submitted and information released

NOSA announced on the morning of December 19 that the patent for Drug Delivery has been submitted. As has previously been communicated in both updates and interviews, information before the submission was intentionally scarce. However, with the patent submitted, it is now possible to look at the different indications and drugs being tested. As was expected, given what information had been shared before, the plugs were able to both generate a quick uptake and a slow and sustained, release up to 24 hours. In total, over 50 generics were identified that have the potential for improved delivery through the NOSA plugs rather than current delivery methods, e.g., pills or injectors. Key indications that were tested for include Alzheimer’s, epilepsy, drug withdrawal, and antidotes. Although a wide variety of indications can be investigated further, CNS disorders are likely to be a focus going forward.

As has been previously communicated, the intent is for pharmaceutical companies to market their drugs using NOSA plugs instead of injectors or pills. It is mentioned that companies will be able to obtain exclusive licenses for the distribution of generics using the NOSA plugs, possibly revitalizing markets for older generics that remain effective. Some estimates of different markets are given as reference, notably the market for auto-injectors, Alzheimer’s, and epilepsy. Regarding auto-injectors, NOSA drug delivery can serve as a replacement, an attractive opportunity given that the market turnover is around SEK 130 billion, according to the press release. The corresponding market sizes for Alzheimer’s and epilepsy are quoted as SEK 50 billion and SEK 100 billion respectively. The next step for the company will now be to seek partners for the technology. Understandably, discussions have already been held but at a surface level pending the patent submission. Furthermore, by the end of Q1 2025, new goals for the drug delivery plugs will be made public.

We are encouraged by the press release and expect that more news and information on discussions will follow in 2025. We note that deal-making in the field of drug delivery can be a long and tricky process. However, deal activity appears healthy, with many different technologies being licensed and co-developed in 2024. As an example, the Swedish company Sobi announced in September that it has entered into an international development and distribution agreement with the USA-based drug delivery company Enable Injections for the subcutaneous administration of pegcetacoplan, a drug developed by Sobi for the rare blood disease paroxysmal nocturnal hemoglobinuria (PNH). The key factor in that deal was improving the patient’s ability to self-administer. This highlights the demand for new drug delivery technologies, like the NOSA plugs, that ease and improve administration while decreasing how invasive the delivery is.

Summarily, we are positively encouraged by the press release. Although expected, a lot of information was shared regarding the amount and types of drugs being tested. We look forward to more information being shared and, when a direction with the technology is made, to include the information in our models.

Read our latest update (19 November) covering Q3 here.

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