Equity Research Nosa Plugs: Positive results and proof of concept

On July 11, 2025, NOSA announced positive results from an in vivo study testing the drug delivery plugs. The study showed that a significant level of the drug used in the study was absorbed into the blood plasma, demonstrating that the delivery technology works and that therapeutically relevant levels can be achieved. The results in the study will, together with previous data, act as proof of concept in negotiations with a potential partner.

NOSA tested the drug Memantin using the proprietary NOSA Drug Delivery plugs. NOSA Drug delivery is a nasal plug that releases drugs in gas form while the user breathes through the product. The technology enables more effective absorption of drug molecules through the nasal mucosa, primarily via the olfactory and trigeminal nerves.  The drug that was studied, Memantin, is an NMDA receptor antagonist that works by modulating the effects of glutamate, a neurotransmitter, which can be overactive in Alzheimer’s disease and contribute to neuronal damage. The study was able to demonstrate significantly higher doses of Memantin in blood plasma than initially expected; up to 8 times higher relative to the recommended dose for therapeutic effect. Importantly, levels found in blood plasma were 4 times higher in spite of administrations of half the recommended dose. This points to the ability of the Drug Delivery plugs to achieve relevant effects with smaller doses, in turn, possibly, limiting dose-specific side effects or bypassing toxicity. It is also worth keeping in mind that the pathways used by the plugs can allow drugs to enter the brain without getting stuck in the blood-brain-barrier (BBB), a common problem for other delivery methods.

Given the plugs ability to both administer drugs that require fast uptake and slow release, combined with the results mentioned above, NOSA has built a strong case for the plugs when it comes securing a potential partner. As is mentioned in the press release by the CEO, Adrian Liljefors; “This marks the final step in our proof of concept and now opens the door to entering into collaboration agreements with pharmaceutical companies that want to use our technology to administer their drugs” (translated from Sweidsh). It is as of yet unclear if the choice of Memantin points to a chosen focus on neurological disorders, or even Alzheimer’s, in particular. It could be the case that the drug was well suited for the study but that other indications and disease areas are up for discussion as well, as has been discussed in previous reports and interviews. Nonetheless, Alzheimer’s represents a huge market with significant potential, meaning that a collaboration agreement, or licensing agreement, could be of significant size.

Carlsquare Equity Research is emboldened by the strong results from the in vivo study. It is likely that the results will allow for more “tangible” discussions with potential partners, an important step seeing as the company aims to ink a deal before 2026. As we have mentioned in previous reports, we believe a significant part of the NOSA case is made up of Drug Delivery, albeit keeping in mind that we believe that the project cannot be reliably valued by external parties until a target indication is made public. We look forward to more data from the study being published as well as further updates regarding discussions with potential partners.

Read our latest update (21 May) covering Q1 here.

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