OASMIA: OASMIA PHARMACEUTICAL ANNOUNCES LICENSING AGREEMENT WITH ORION CORPORATION REGARDING NEW INNOVATIVE OVARIAN CANCER DRUG CANDIDATE, PACLICAL®.

(NGM:OASM A)

Oasmia Pharmaceutical, Sweden and Orion Corporation, Finland, have entered a
license and distribution agreement for marketing and sales of the human cancer
drug Paclical® (micellar paclitaxel) in the Nordic region, encompassing Sweden,
Denmark, Norway, Finland and Iceland. The product is currently entering Phase
III development by Oasmia, with ovarian cancer as the target indication. 

Orion receives the exclusive rights in the Nordic region to distribute and sell
the product. Orion will also have first right of refusal for one more cancer
drug candidate in the Oasmia product portfolio in this region. According to the
agreement, Oasmia will receive payments of EUR 4 million, partly up front and
partly subject to a successful development and regulatory process for
Paclical®, as well as royalties from the sales. 

Oasmia will be responsible for the clinical development, registration and
production of Paclical®. 
Paclical® is currently entering into clinical phase III and further clinical
studies in ovarian cancer are planned for the first quarter of 2008. Other
indications will follow during the same year. Orion Corporation will be
responsible for the distribution and sales in the Nordic region after
registration. 

- We are very pleased to announce our agreement with Orion, as the first in a
number of upcoming agreements for the world-wide distribution of Paclical®.
Orion, with it's strong presence and long tradition in the Nordic region, is an
ideal partner to reach cancer patients with our product in this region, which
represents approximately five per cent of the world market for Paclical®. The
market for taxanes currently exceeds EUR 61 million yearly in the region. We
regard this agreement as the first step in a broader co-operation between Orion
and Oasmia, says Julian Aleksov, CEO of Oasmia. 

- Orion is pleased to work towards bringing new treatments for cancer patients.
This product will offer an improved way to treat ovarian cancer and Oasmia's
work in this field will hopefully materialise in other innovative treatments as
well. For Orion's Urology and Oncology business area this is an important
product, says Timo Lappalainen, Senior Vice President of Proprietary Products
division at Orion. 

About Paclical®
Paclical® is a novel water soluble, solvent-free nano particle formulation
based on the well known 
cytotoxic agent paclitaxel. The unique properties of Paclical® are based on
Oasmia's nanotechnologically produced excipient and micellar model XR-17 which
is protected by international patents. The novel platform makes paclitaxel
hydrophilic, makes premedication unnecessary, shortens the infusion time and
facilitates the infusion. 















About Oasmia
Oasmia Pharmaceutical AB develops next generation cancer drugs based on
nanotechnology for human and veterinary use. The broad portfolio is focused on
oncology and contains several promising products in clinical and pre-clinical
phase. Oasmia co-operates with leading universities and other biotech companies
to discover and optimize substances with a favourable safety profile and better
efficacy. 
The company was founded in 1998 and is based in Uppsala, Sweden.
For more information, please visit: www.oasmia.com

About Orion 
Orion is dedicated to treating and preventing disease by discovery and
developing innovative medicinal treatments. In 2006, Orion generated sales of
EUR 641.1 million and invested EUR 84.1 million in research and development.
Orion Corporate headquarters are situated in Espoo, Finland and the company has
approximately 3,060 employees. For more information, please visit:
www.orion.fi/english/ 


















More information is available at www.ngm.se or www.oasmia.com
For further information please contact: info@oasmia.com or call: +46 (0) 18 50
54 40 

Oasmia Pharmaceutical AB is a pharmaceutical company that specialises in the
treatment of severe diseases based on the latest concepts in bio-organic
chemistry. Our vision is to improve the treatment of serious diseases.
Primarily, this development is in oncology but Oasmia also conducts research in
antibiotics, asthma and neurological diseases. Oasmia has in-house production
capacity of pharmaceuticals for clinical trials, both company related and
others. Oasmia has developed several products based on existing pharmaceuticals
in a new environment, which leads to new solutions for cancer treatment. These
products give Oasmia a solid product portfolio within oncology with several
products in clinical or pre-clinical phase. Oasmia is listed on NGM Eguity.