EffRx - Effervescent Pharmaceuticals

Drug Delivery Technology Market

The contract development and manufacturing market is continuously growing due to demand for new and novel products. The total prescription drug contract manufacturing market was valued at $12.4 billion in 2004 and, at a 10% average annual growth rate, is expected to reach $25 billion in 2011 according to Frost and Sullivan. The contract development and manufacturing market, including OTC and nutritional products, was estimated at $100 billion in 2004, and is also expected to increase at a 10% average annual growth rate according to the Business Communication Company. EffRx believes there are extensive growth opportunities for an experienced, service-minded and well-established company. Novel drug delivery technologies have become an important focus area in the pharmaceutical industry as companies look to new drug formulations as a means of product differentiation, particularly as their existing products lose patent protection. According to the Business Communication Company, the market for advanced drug delivery systems grew from $16.3 billion in 2000 to $27.4 billion in 2005, representing at CAGR of 11%. This growth is expected to continue as approximately one third of existing prescription pharmaceuticals in the United States come off patent over the next few years, representing approximately $30 billion annually, and new drug approvals are not expected to fully compensate for these expirations. As such, pharmaceutical companies will seek to extend the profitability life cycle of their existing products by developing new proprietary formulations as well as higher margin, value-added generic products.

Effervescent Technology

Effervescence is a proven drug delivery technology with several advantages compared with traditional delivery forms such as pills or liquid formulations. The primary advantages include more complete and faster absorption, faster onset of action and reduced gastrointestinal side effects. Numerous studies have demonstrated the benefits of effervescent delivery. Additionally, effervescent solutions and fast-melt technologies circumvent the problems associated with swallowing solid pills, tablets or capsules, making these formulations attractive for drugs targeted at the pediatric and geriatric populations and for compounds that are administered in large dosage forms.

Effervescence is a popular, well-established delivery form in Europe and is an emerging drug delivery technology in the US. Market research suggests that the US market is receptive to effervescent formulations, provided the products taste good. As such, our expertise in taste-masking and taste-profiling are key competitive advantages in the development and marketing of effervescent products.

Beyond Effervescence

In addition to soluble effervescent products, EffRx is engaged in the development of taste-masked granules, fast melt lozenge technologies, and sustained or controlled release delivery forms. Novel dosage form applications rely on our broad skills in formulation, manufacturing processes, and polymer utilization. For example, our expertise with granulation and coating processes is a key to developing unique product attributes.

Product Overview

EffRx has a number of products in various stages of development, including two products approaching clinical trial and a third product in active development. These products include soluble effervescent forms and rapid melt lozenges. Several formulation stage products include taste-masked granules for inclusion in tablets and for delivery as granules. Active product development areas include osteoporosis, xerostomia, pain management, CNS, metabolic disease / diabetes agents.

Intellectual Property

EffRx considers the protection of its proprietary information, technologies, know-how, products and processes to be material to the success of its business. The Company has a robust technology platform in the field of formulation and manufacturing, and believes that the formulations, manufacturing processes, and the therapeutic advantages of its products provide a strong basis for intellectual property protection. Effervescent applications are a key element of our intellectual property position, but not all applications are dependent upon effervescence per se.