(NGM: OASM A) Promising results pushes Oasmia to next level The period in brief · Net sales for the group amounted to 53 224 SEK, thousands, (9 863 SEK, thousands) · Operating profit/loss amounted to -4 822 SEK, thousands (-7 966 SEK, thousands) · Profit after tax amounted to -4 937 SEK, thousands (- 8 430 SEK, thousands) · Earnings per share amounted to -0,15 SEK (- 0,27 SEK) Third quarter, Nov 2007-Jan 2008 · Net sales for the group amounted to 31 718 SEK, thousands (6 210 SEK, thousands) · Operating profit/loss amounted to 11 632 SEK, thousands (-2 900 SEK, thousands) · The profit after tax amounted to 11 866 SEK, thousands (-3 040 SEK, thousands) · Earnings per share amounted to 0,36 SEK (-0,10 SEK) Key events during the third quarter In November Oasmia and Orion Corporation, Finland, entered a license- and distribution agreement with exclusive rights for marketing and sales of the pharmaceutical Paclical® for human use in the Nordic region (Sweden, Denmark, Norway, Finland and Iceland). Orion also obtained first right of refusal for the same region for an upcoming candidate from the Oasmia product portfolio. Oasmia received 2 million Euros during the third quarter. The company will receive another 2 million Euro when a registration of the pharmaceutical is obtained. Furthermore, the agreement also entitles Oasmia royalties on all sales. Oasmia will be responsible for clinical development, registration and production of Paclical®. More negotiations were in progress with international partners regarding licensing of Paclical® and Paclial® Vet and Oasmia is expecting to close further agreements during 2008. In November the results of the clinical Phase I/II study were presented at the annual Veterinary Cancer Society Congress in Florida. In January Oasmia received final advice from the European Medicines Agency EMEA for the Phase III clinical development program for Paclical® on the indication ovarian cancer. The company has recruited new competence and strengthened it's organization, mostly in clinical trials and production but also in the department of Regulatory Affairs. The number of employees increased during the period May 2007 - Jan 2008 with 12 people to a total of 41 people. Key events after the close of the period In the end of February Oasmia presented interim results from a Phase III study with the pharmaceutical candidate Paclical® Vet at a veterinary congress in Copenhagen. The congress was the first joint congress for the organizations ESVONC (European Society of Veterinary Oncology) in Europe and VCS (Veterinary Cancer Society) in the US. The results presented at the congress showed that 58 % of the 24 included dogs in the study treated with Oasmia's pharmaceutical candidate Paclical® Vet responded. Sixteen of these dogs underwent full treatment of three cycles and 62 % responded. Future development Focus is currently on an international Phase III study for Paclical® Vet in the EU and USA. This study is expected to fish in 2008 and will form the foundation for a global registration. Several negotiations are in progress globally concerning the licensing of the pharmaceutical candidate. The company also intends to launch a large international Phase III study with the product for human use, Paclical®. Far reaching negotiations concerning licensing are continued. Oasmia continues to develop the existing product portfolio and prepares several new products for clinical trials. Business activities The main business activity in the parent company Oasmia Pharmaceutical AB (publ) consists of research, development and production of in-house pharmaceuticals with an emphasis on oncology. Focus lies on human and veterinary oncology where the company has a solid product portfolio. The company office, research and production facility is situated in Uppsala, Sweden. Oasmia owns 100 % of the subsidiary Qdoxx Pharma AB. The company's main business activity consists of parallel import of pharmaceuticals. The business idea of Qdoxx Pharma is to import and provide qualitative and price worthy pharmaceuticals on the Swedish market. Qdoxx Pharma has had a positive development trend during the period. Net sales has increased to 34 519 SEK, thousands (9 328 SEK, thousands). Oasmia also holds a 51 % share of the company GlucoGene Pharma AB. GlucoGene is a research company that has developed a novel type of xyloside. The aim is future treatment of brain tumours. The xylosides are currently in pre-clinical phase. Research and Development The Oasmia Pharmaceutical AB research and development activity is mainly directed towards human and veterinary oncology. The company research on the natural ageing and death of the cell has formed the platform for the development of the company's solid product portfolio, containing among others the unique pharmaceutical Paclical® and Paclical® Vet. The basis for the Oasmia product portfolio is a group of novel, unique and patented substances. One of these, XR-17, is specifically designed with the property to form micelles around the active part of the pharmaceutical. Oasmia's XR-17 can be used together with a variety of different substances in order to improve their profile and effect, especially substances that are sparsely water-soluble. The pharmaceuticals in the company product portfolio are all based on the excipient XR-17. Product portfolio The company product portfolio consists of Paclical® for human use and Paclical® Vet for veterinary use as well as the products Docecal®, Doxophos® and Carbomexx®. Oasmia sees its main task to implement the progression of the clinical Phase III programme for Paclical® and Paclical® Vet. Docecal®, Doxophos® and Carbomexx® are on the verge of entering clinical phase I/II- studies. These products covers theoretically 80 % of the standard treatments used today for the most common forms of cancer. Oasmia holds world-wide patents for all products. Market Of the total market for cytostatics, Paclical® is part of the group taxanes to which pharmaceuticals such as Taxol®, Taxotere® and Abraxane® belongs. The market size for this goup is about 2.5 billion USD in 2007 with an estimated annual growth of about 5 %. The prognosis for nanoparticle taxanes to which Paclical® belongs, are estimated reach 40 % of the total taxane market the coming five years. (for complete report see attached file)