Pancreatic cancer is a difficult disease to treat. In 2020 alone, a total of 495,773 new cases emerged with 466,003 deaths of 246840 males and 219163 females. Companies like OncoSil are trying to change this. Oncosil Medical Limited (ASX: OSL) is an Australian-listed medical device company that focuses on localised treatments for patients with pancreatic cancer and liver cancer. It has created a medical device that is equipped with targeted radioactive isotopes (Phosphorus-32), implanted directly into pancreatic tumours in a treatment known as brachytherapy. This approach delivers concentrated and localised radiation without harming surrounding tissue. 

OncoSil Taps markets to expand Commercialisation Efforts

The company expects to raise $7.1 million which will be used to invest in a range of projects destined to boost commercialization and revenue growth. Below, we illustrate how the company plans to spend the expected $7.1 million that will be realised.  

Commercialisation of OncoSil Products: The OncoSil device is increasingly used in hospitals, with the device being approved in over 35 countries across the world. However, Oncosil (ASX: OSL)  must invest more in sales and marketing to accelerate the adoption of its device across hospitals and equally train doctors on how to use the device to deliver treatment to patients with pancreatic cancer. While commercialisation is taking hold, OncoSil (ASX: OSL)  has submitted additional information to the Food and Drug Administrator (FDA) in the United States (U.S.) to ensure it can be fully approved for use across U.S. hospitals. 

The U.S. is an important market for cancer drugs as advanced economies in North America and Europe have an ageing demographic and equally have the means to afford treatment via Oncosil (ASX: OSL). 

Costs of Clinical Trials and Expansion: Clinical trial expenditure to expand the use of the OncoSil device in combination with FOLFIRINOX  chemotherapy and other trials will be funded from the capital raise. This will expand the range of treatments for OncoSil and ensure that revenue growth persists as the company continues to implant itself in over 35 countries. Furthermore,  Clinical trials, if successful, can bring about long-term revenue growth and increase their competitiveness over the long run. This will make Oncosil (ASX: OSL) one of the leading treatments for pancreatic cancer across the world and approval by the FDA will encourage more countries to adopt the treatment device as a potential treatment for pancreatic cancer.  

Manufacturing and Supply Chain Optimisation: Completion of the next milestone and validation of the Macquarie Park, NSW. This is necessary to ensure that OncoSil can manufacture, market, sell, and train doctors to use its device. While it is expensive to have full control of the supply chain,  this will improve the predictability of supply and ensure the company is well-placed to ramp up production to meet demand from other countries. Furthermore, due to the proprietary nature of this technology/device, it is essential to protect the intellectual property that will confer the company a competitive edge over the long-run. Meanwhile, production at a local factory will equally ensure the adaptability of their supply chains to reduce cost and adjust effectively to potential external challenges. General Working Capital and Capital Raising Costs: General day-to-day running and the cost of raising the funds are estimated at $1.5 million if the target is met. As such, cash flow is required to keep production on, ensuring that staff wages and other necessary costs are met during this period. 

Impact of change in ASX Market price

Expanding its treatment centres and production will ensure that the company serves a range of markets, supporting its share price over the medium term. An increase in the share price will correspond to a proportionate increase in the value of its shares, which supports the need to support its expansion at this time through a capital raise. 

2023 Was a Good Year for OncoSil, But 2024 Can be Better

In 2023, OncoSil focused on regulatory and ethics approvals, and site training in over eighteen (18) hospitals that are fully trained to treat patients using the OncoSil device. Commercial progress was seen in Spain with a total of 10 hospitals already performing commercial treatments, and a further 3 hospitals were trained to begin treating patients. 

The first ten patients were equally treated in Spain using the OncoSil device and other commercial agreements have been completed in the region of Catalunya and the Canary Islands, where hospitals with the necessary infrastructure can perform the treatment.  OncoSil (ASX: OSL) capital raise is an opportunity for investors to support the company’s control trials and commercialisation efforts across the world. As treatment is being rolled out in hospitals across Europe and Turkey, it is essential to further advance adoption across other jurisdictions to support the share price over the long run.