NexMed Inc has entered into an R&D agreement with a Japanese pharmaceutical company to develop NM 20138, a new once-a-day patch treatment for bronchial asthma. NM 20138 incorporates an off-patent anti-asthmatic drug compound and the NexACT technology. Pursuant to the terms of the agreement, NexMed has received a modest signing payment and will receive additional payments based on the achievement of certain R&D milestones. NexMed has also retained the rights to manufacture and commercialize the new product worldwide except in Japan. The World Health Organization reports that 100-150 million people worldwide suffer from bronchial asthma. The current US market for asthma care is estimated at $6 billion per year.

Dr. Joseph Mo, President and C.E.O., of NexMed said, "We are pleased to provide our new partner access to the NexACT technology as well as to our scientific team and infrastructure." Dr. Mo further added, "We believe NexACT, as a platform technology, represents significant opportunities for pharmaceutical companies to develop new, patient-friendly products, and to potentially extend the life cycles of blockbuster products."

The NexACT platform technology may offer significant commercial potential in the development of new and improved topical products where the desired therapeutic effect depends on effective and efficient absorption of active ingredients. NexACT consists of a series of different skin penetration enhancer molecules, and can be formulated in pharmaceutical dosage forms such as creams, patches, lotions, solutions or intranasal sprays.