Phosphagenics Topical Retinoic Acid Clinical Trial Initiated

Implications: This new delivery system from Phosphagenics for enhancing absorption and reducing irritation will have moderate effect on the retinoid market. Retinoic Acid use has been in decline not so much because of irritation, but because of the introduction of more efficacious retinoids like Tazorac and Differin 0.3%. The trial size was limited, and a larger trial is a good initial step. Efficacy will generally be less than that for the other retinoids.

Analysis: The use of the proprietary delivery system by Phosphagenics for retinoic acid is a good initial step. However a better market may be topical steroids and other anti inflammatory agents for which the market may be also larger, as well as other retinoids which would benefit from enhanced penetration. Retinoic acid was chosen as it has lost patent protection 7-8 years ago, and Tazorac and Differin are still protected. This technology may have more benefit if it is licensed to other companies as a novel drug delivery system.