Oasmia Pharmaceutical AB, Sweden - Listing Prospectus: NASDAQ OMX Stockholm

A Number of Promising New Product Candidates for Cancer Treatment, Within Both Human and Veterinary Oncology

UPPSALA, Sweden, July 15, 2010 - ABOUT OASMIA

Oasmia is developing a new generation of drugs with emphasis
on human and veterinary oncology. Our main business activity focuses on
improving product life cycles and the versatility of current pharmaceuticals.
In-house research in nanotechnology and a long-term working basis can be seen
as a guarantee for reaching our highly set goals.

In addition to strategic investments in oncology we also have a number of
promising patents and product candidates in therapy fields such as infection,
asthma and neurology.

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BUSINESS CONCEPT

Oasmia's business concept is to develop and license drugs
which improve the effect in the treatment of serious diseases in the areas of
oncology, infection, asthma and neurology. Licensing creates future value
through milestone payments and royalties on sales of pharmaceuticals after
marketing approval has been obtained.

STRATEGY

Research & development

Oasmia's research and development strategy is focused on extending the
life cycle of existing drugs by producing new formulations that improve the
characteristics of the drug and/or expands its area of application.

Production

The basis for Oasmia's production strategy is the Company's
in-house development of all processes for the synthesis of compounds and
production of the finished drug. Pilot-scale production is handled internally
to meet requirements in the clinical trials. Oasmia's strategy for full-scale
production involves the use of contract manufacturers.

Sales

The strategy is to create future value through partnership
agreements with international or regional drug companies for continued
development and commercialisation.

Risk management

As a research-based pharmaceutical company, Oasmia is exposed
to various risks and uncertainties that can have a negative impact on its
operations. The Company works continuously to ensure that effective
procedures are in place for identifying, assessing and managing these risks.
The Company's risk prevention activities cover all areas of the business with
a particular focus on the Company's clinical studies and drug production.

PRODUCT PORTFOLIO

The drugs currently available in Oasmia's product portfolio
are all based on the Company's patented micellar platform XR-17. The first
drug candidate within human medicine is Paclical(R), which contains the
well-known cytostatic paclitaxel. Approval is expected in Europe in 2011 and
in the U.S. in 2012 for the indication ovarian cancer. Other drug candidates
are Docecal(R), Doxophos(R) and Carbomexx(R), all within oncology.

Oasmia's leading drug candidate within veterinary medicine is
Paccal(R) Vet, which, like Paclical(R), contains paclitaxel. Before the end
of 2010, the Company expects that Paccal(R) Vet will be approved for
treatment of mastocytoma (the most common skin tumour among dogs). Oasmia
also has three other promising drug candidates for treatment of various types
of cancer in dogs: Docecal(R) Vet, Doxophos(R) Vet and Carbomexx(R) Vet.

INVESTMENT CASE

    1) Short time to commercialization. Clinical Phase III trials
       began with Paclical(R) and Paccal(R) Vet in 2008. Phase III for
       Paccal(R) Vet was closed in the first half of 2010, with significant
       positive results. The study is the largest study in the world within
       veterinary oncology to date and the goal is to have these two product
       candidates registered in 2011 and 2010 respectively. In addition,
       Oasmia has six major projects which have passed the preclinical stage.
    2) Oasmia has reached significant milestones in terms of the
       licensing and distribution agreement with Orion Corporation for
       Paclical(R) in the Nordic and Paccal(R) Vet in Europe, which provides
       the company with 14 MEUR, along with a distribution agreement with
       Abbott Laboratories for Paccal(R) Vet in the United States and Canada
       which pays 19 MUSD and future royalties. For Japan, Oasmia has signed
       an agreement with Nippon Zenyaku Kogyo Co. Ltd. (Zenoaq) which pays
       3.25 MEUR.
    3) Excellent opportunities for new licensing and distribution
       agreements for additional indications and/or other geographical
       markets and for the Company's other product candidates.
    4) A trigger in the short term is to close agreements on licensing
       and distribution for Paclical(R) in Europe (e.g. the Nordic region)
       and the United States and enter clinical phase with the other product
       candidates. Oasmia has strong intellectual property rights since the
       Company holds valid patents in 26 countries based on six different
       patent families. Oasmia has also submitted eleven additional patent
       applications in the six patent families.

SHARE INFORMATION

Oasmia is listed on NASDAQ OMX Stockholm.

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Contact: Maria Lundén, Head of PR +46-70-266-11-33