Key Highlights
- Oncosil raised $5.3 million under its entitlement offer
- They are being used to fund clinical trials
- Oncosil Medical (ASX: OSL) will accelerate commercialization efforts across the world
What’s New?
OncoSil Medical Ltd has successfully raised $5.3 million through a non-renounceable entitlement offer and this money is being used to finance expansions and commercialization as well as further clinical trials across the world.
Why it Matters?
Commercialisation of OncoSil Product
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 commercialization 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 approved for use across U.S. hospitals.
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 cancer treatment device as a potential treatment for pancreatic cancer. The 200th patient has been treated with the Oncosil device and the 5th patient has been treated under the Pancosil trial.
Leveraging Partnerships to Gain New Markets
OncoSil Medical Ltd has entered a pivotal 3-year exclusive distribution agreement with Abdulla Fouad for Medical Supplies and Services to market their OncoSil device in Saudi Arabia, opening up access to the largest market in the Middle East.
This will enable its products to be accessible across Saudi Arabia which has a very developed healthcare system and supportive demographics that will maintain or reinforce demand for its product in the region.
How will the Funds Raised Influence Short-term Performance
The capital raise has been instrumental in supporting Oncosil’s expansion and will enable the clinical trials to continue while it leverages new partnerships to expand into other regions across the world.
