China Aoxing (OTC:CAXG) will collaborate with QRxPharma Limited (OTCPK:QRXPY), a clinical stage Australian pharma, to develop MoxDuo®IV for the China market. MoxDuoIV is an IV formulation of QRxPharma's patented morphine and oxycodone Dual-Opioid™ technology for the acute treatment of moderate to severe pain.
China Aoxing will fund development of MoxDuo®IV for the China market in exchange for exclusive marketing rights of the product in China. QRxPharma will retain ownership of MoxDuo®IV and may use the clinical work completed by China Aoxing in product registrations outside of China. Further financial details of the collaboration were not disclosed.
China Aoxing also licensed the China rights for MoxDuo®IR, an immediate release fixed-dose capsule, which just began its second pivotal Phase III studies among knee-replacement patients in the US. For both the IV and fixed dose formulations, QRxPharma claims improved analgesic response for its combination product with fewer side effects than either morphine, oxycodone or Percocet® alone.
In July 2009, QRxPharma began a comparative proof-of-concept trial of the IV formulation, MoxDuoIV, comparing it to morphine alone in the treatment of moderate to severe post-operative pain in patients following hip replacement surgery. Results are expected in Q2 of 2010. If that trial is successful, China Aoxing would use a similar design in its own clinical tests.
China Aoxing is building a portfolio of pain medications. It has one of a relatively few China licenses to produce narcotic medications. However, the company continues to struggle financially. In the first six months of its fiscal year (ended December 31, 2009), China Aoxing reported revenue of just $3 million, which was about half of its year-earlier results. The company blamed the shortfall on delays in regulatory recertification following moving its drug production from one facility to another. The company’s major accomplishment during the period was the forgiveness of $3.6 million in debt.
American Oriental (NYSE: AOB) has taken a 35% stake in the company, presumably because of its access to the market for narcotic drugs.