Shares of Nasus Pharma surged as much as 12.6% to $4.02 after the micro-cap Israeli drugmaker announced it had dosed the first patient in a Phase 1 clinical trial of its intranasal ondansetron product, a nose-spray version of one of the world's most widely used anti-nausea medicines. For a company with a market capitalization hovering near $20 million, even a modest clinical milestone can move the stock — but investors should weigh the excitement against the long road ahead. Nasus Pharma Begins Testing a Nasal Spray for Chemo Nausea — Can a Seven-Person Company Turn Two Big Ideas Into a Real Business?
Shares of Nasus Pharma jumped 12.6% to $4.02 after the Tel Aviv-based drugmaker announced it dosed the first patient in a Phase 1 trial of its intranasal powder version of ondansetron — one of the most common anti-nausea drugs in medicine. For a company with roughly $11.9 million in cash, no revenue, and a staff you could fit in a minivan, the stakes of every clinical milestone are enormous.
The Drug Is Familiar, but the Delivery Method Is New. Ondansetron is one of the most widely used therapies for chemotherapy-induced nausea, with more than 12 million prescriptions dispensed to over 6 million patients in 2023 alone.
The branded version, Zofran, hit peak sales exceeding $1.5 billion. Nasus is betting it can reformulate this well-known molecule as a nose-delivered powder, potentially offering faster absorption without needles or pills — a real advantage for patients already vomiting. Preclinical animal studies showed the nasal version matched the drug-absorption profile of intravenous ondansetron and showed no adverse effects at four times the test dose.
Two Trials Running Simultaneously Could Strain a Tiny Balance Sheet. As of June 30, 2026, the company held $11.9 million in cash with about 11.7 million shares outstanding.
Its accumulated deficit stood at $24.5 million, with zero product revenue. Meanwhile, the FDA cleared Nasus to begin a pivotal (final-stage) trial of its nasal epinephrine product — a needle-free alternative to EpiPen for severe allergic reactions — with that study planned for Q4 2026 and topline data expected in Q1 2027.
The company also recently set up an $8.5 million at-the-market equity program — meaning it can sell new shares into the open market to raise cash, which dilutes existing investors.
Early Data Is Months Away, and the Real Payoff Is Years Out. The Phase 1 ondansetron study will assess safety and how the drug moves through the body, with topline data expected before year-end 2026. Even positive results would only justify advancing to larger, more expensive trials. Two analysts carry buy ratings with a consensus price target of $19.67 — nearly five times today's price — but that target prices in flawless execution across multiple programs, which is a tall order for a pre-revenue micro-cap.
The Bottom Line: Nasus is building a pipeline of nasal-spray drugs around proven molecules, a sound scientific strategy. But investors paying up today are making a bet that a company burning roughly $5 million a year can fund two simultaneous clinical programs without heavily diluting their stake. The next 90 days — with data from both trials potentially in hand — will tell the story.