Oasmia Pharmaceutical – betting on a unfulfilled promise

In 2010 Oasmia Pharmaceutical was listed on the Nasdaq OMX with Carnegie as primary advisor. They wrote an analysis prior to the listing which is a good read when you as a sceptic investor want to view other analysis in the sector. As a whole I found the timelines in drug development far to optimistic on the verge to deceiving. Carnegie projected sales to explode already in 2011 to 197 million Swedish. In 2014 the sales stood at 2 (two) million. The market cap it was floated at amounts to 970 million. Today its market cap is 1,73 bn Swedish approx 300 MUSD.

It is still expensive although Oasmia Pharmaceutical just received a marketing authorization in Russia.

Oasmia is listed on OMX, Frankfurt and is now raising money to be listed in the US on Nasdaq.

Despite its rather high market cap Oasmia is burning money at an alarming rate. 117 million SEK in 2014 to be precise. So the company which has hit the market up for additional cash every second year haven´t turned the corner yet. It will be exciting to watch the appetite in US for its 23 MUSD offering.

The timing is right. The question is whether the company is ready?