OASMIA: OASMIA ENTERS NEW IMPORTANT LICENSE AGREEMENT FOR PACLICAL® VET WITH ORION CORPORATION

Oasmia Pharmaceutical has entered into a license agreement with the Animal
Health business of Orion Corporation, Finland, for the veterinary product
Paclical® Vet (paclitaxel). The agreement covers the Nordic countries and
Poland, the Czech Republic and Hungary. According to the agreement, Oasmia will
receive EUR 2 million in up-front payments plus significant royalties on all
sales. Orion obtains exclusive sales and distribution rights for the included
territories. 

Paclical® Vet is a new cytostatic treatment for veterinary use, developed by
Oasmia. Paclical® Vet is currently in clinical phase III. Another extensive
international phase III study on mastocytoma in dogs will be initiated during
spring 2008. The purpose is to ensure efficacy and safety in order to seek
marketing authorisations for the product. If positive, Paclical® Vet will be
the first cytostatic product to be registered for the treatment of dogs. 

Oasmia is responsible for all clinical development and registration of
Paclical® Vet. Oasmia has in 2007 already established a licensing agreement
with Orion Corporation regarding Paclical® for human use. 

- Orion Corporation has been leading in the Nordic region within animal health
for a number of years. For Oasmia, they are an ideal partner in exploring this
rapidly growing market. Together, we will be the first to explore this
interesting field, comments Julian Aleksov, CEO of Oasmia. 

- Oncology is one of the key therapeutic areas for Orion. Paclical® Vet ideally
complies with our strategy and our goal to provide our customers with
innovative products for unmet medical needs, such as the challenge of to treat
cancer. For us, this agreement with Oasmia means expanded collaboration with a
company dedicated to innovative technologies and seeking new treatment
approaches, says Satu Ahomäki, Senior Vice President heading the Animal Health
business of Orion. 

Today, there are 140 million dogs only in the EU and the US. The market,
calculated as the number of dogs over six years old in the EU and the US of
which 40 % will suffer from cancer, totals 1,5 billion USD. The Nordic region
accounts for 3-4 % of the total world market. The market for Paclical® Vet is
estimated to reach 350 to 650 million EUR in year 5 to 10 after registration. 

About mastocytoma (Skin cancer)
Mastocytoma is a malignant form of cancer, originating from the mastocytom
cells of the skin. The disease is graded I - III depending on the seriousness
of the disease. This form of cancer accounts for approximately 20 % of all
malignant skin tumours in dogs. Today, the most common form of treatment is
surgery, although chemotherapy developed for human use is also used.
Unfortunately, surgery as a treatment of grade III tumours is ineffective, and
euthanization is often the only remaining alternative. 






About Paclical® Vet
Paclical® Vet is a water soluble, solvent free nanoparticle formulation, based
on the well-known cytotoxic substance paclitaxel. It´s unique properties are
based on Oasmia's nanotechnological formulation and micellar model XR-17, which
is protected by international patents. The new Oasmia platform means that
paclitaxel is water-soluble, that no premedication is necessary, infusion times
can be shortened and infusion procedure can be made more effective. 

About Oasmia
Oasmia Pharmaceutical AB develops second and third 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 cooperates 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.

About Orion 
Orion is a European pharmaceutical and diagnostics company which emphasises the
development of innovative medicinal treatments and diagnostic tests for global
markets. Orion develops, manufactures and markets pharmaceuticals for humans
and animals, active pharmaceutical ingredients as well as diagnostic tests.
Orion's clientele consists mainly of healthcare service providers and
professionals. The Group's net sales in 2007 were EUR 683.6 million and in the
end of 2007 there were 3 176 employees working for the Group. Orion's stocks
are listed in OMX Nordic Exchange Helsinki. 

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