NSAIDs Programme & Year End Financial Review

Oxford Pharmascience Group plc

("Oxford Pharmascience" or the "Company")

Update on NSAIDs Programme& Year End Financial Review

NSAIDS Programme - Summary Update

Following recent announcements on its OXPzeroTM Ibuprofen and Naproxen programmes, Oxford Pharmascience (AIM: OXP), the specialty pharmaceutical company that redevelops medicines to make them better, safer and easier to take, gives a summary view of its lead NSAIDs (non-steroidal anti-inflammatory drugs) programme regarding pipeline status, indicative timelines and market potential. The Company also today discloses that its expected year end cash position (as at 31 December 2014) is circa £6.7m, which provides sufficient capital to deliver its NSAID portfolio through to anticipated commercial inflection points in 2015 and beyond.

Highlights

· Late stage pipeline with 2015/16 focus on the $12billion NSAIDs market, proceeding with late stage confirmatory Proof-of-Concept (POC) studies with OXPzeroTM Ibuprofen and OXPzeroTM Naproxen

· With POC study results expected in Q2/Q3, the company plans to initiate partnering discussions from mid-2015

· OXP's disruptive technology set to provide strong differentiation for Global Brand Owners in the over-the-counter (OTC) market and provide a compelling healthcare case for patients and payors in prescription markets (Rx)

· With a cash position at 31 December 2014 of c. £6.7m, the Company is well funded to deliver the portfolio and continue operations through commercialisation

The Company is keenly focused on its NSAID programme, and is proceeding in the first half of 2015 with POC studies for both OXPzeroTM Ibuprofen and OXPzeroTM Naproxen, two widely used NSAIDs. OXPzeroTM Ibuprofen headline PK data is expected by mid-2015 and headline endoscopy data is expected in Q3 2015. OXPzeroTM Naproxen headline PK results are expected by the end of Q1 2015 and headline endoscopy data is expected in Q2 2015. Assuming the data is in line with expectations in confirming equivalent bioavailability vs. standard forms and confirmation of reduced gastrointestinal erosions, the Company believes that it will possess a robust data package with which it will be able to initiate partnering discussions during the second half 2015.

The global NSAIDs market, which in total is worth c.$12bn per year (source: Evaluate pharma), includes both an OTC market which is concentrated in the hands of several global brand owners and the Rx (prescription) market. The OXPzeroTM technology can provide significant opportunity for pharma partners to differentiate and establish competitive advantage for their NSAID products while providing patients and health care systems with improved quality of care. Company modelling suggests every 1% of current market sales captured for gastric-safe Ibuprofen and Naproxen could equate to $26m in OTC and $23m in Rx markets respectively.

The Company is also in early formulation stage of an OXPzeroTM Aspirin product aimed at long term anti-platelet treatment for cardiovascular disease. Further updates on this programme will be given throughout 2015.

2014 Financial Review

Over the last 24 months the Company has become increasingly focused on its development work across the NSAID platform. Nevertheless, as stated at the time of the interim results, the calcium supplement business continues to contribute revenue although at a lower level. The Company now expects revenue for the year to 31 December 2014 to be around £0.7m.

The Loss Before Tax for the year ended 31 December 2014 is expected to be in the region of £3.5 million, which reflects the acceleration in 2014 of R&D investment in the NSAIDs programme. As a result of tight cost control, cash and cash equivalents on the balance sheet as at 31 December 2014 are approximately £6.7m. This leaves the Company well-funded to deliver its NSAID portfolio through to anticipated commercial discussions and value inflection points in 2015 and beyond.

The Company expects to report its year end results around 5 March 2015. A further announcement will be made in due course.

For further information:

Oxford Pharmascience Group plcMarcelo Bravo, Chief Executive +44 20 7554 5875

N+1 Singer (Nominated Adviser & Broker)Aubrey Powell/Jen Boorer +44 20 7496 3000

About Oxford Pharmascience Group Plc

Oxford Pharmascience uses a range of proprietary technology platforms to re-develop existing medicines to make them better, safer or easier to take. The Company does not manufacture or sell its own pharmaceutical products direct to consumers, but instead seeks to license its technologies and dossiers to a network of partners, mainly leading pharmaceutical companies with Rx (prescription) and OTC (Over the Counter) branded portfolios. 

Oxford Pharmascience focuses on existing medicines that are proven to be safe and effective but nevertheless still have associated issues and side effects often affecting compliance. By working with such medicines, the Company is able to develop new innovative products for a fraction of the cost, in much quicker timescales and without the high risk of failure associated with developing new drugs.

About NSAIDs

NSAIDs are one of the most widely used classes of drugs, with more than 30 million users worldwide consuming NSAIDs each day and combined annual sales in excess of $12 billion (source: Evaluate Pharma). However, chronic use of NSAIDs causes well-documented GI side effects, including ulcers and bleeding, and leads to significant morbidity and mortality in many patients. The OXPzero™ platform technology reduces these risks and is being selectively applied to the most commonly used molecules in the NSAID category, namely ibuprofen, naproxen, diclofenac and aspirin, to maximise both the significant health benefits to users and the capture of commercial value for the company over the medium term. Ibuprofen, naproxen and diclofenac are the most commonly used drugs for pain and inflammation (accounting for 76 % of chronic pain prescriptions in the US and Europe in 2013) and aspirin is widely used as an antiplatelet agent.