Orexo signs exclusive worldwide license agreement for a novel formulation

Uppsala, Sweden, 28 August, 2009 - Orexo (STO: ORX) announces it has signed an exclusive worldwide licensing agreement with a Novartis affiliate to develop and commercialise a novel product related to Orexo’s OX17 program.

Under the terms of the agreement, Novartis will fund all future development of the new product and will receive an exclusive license to all related intellectual property. Orexo will receive milestone payments upon major development achievements, and will be eligible for further milestone payments upon the attainment of certain sales targets. In addition, Orexo will receive royalties on future sales of the product. The agreement’s financial terms were not disclosed.

Torbjörn Bjerke, President and CEO of Orexo, commented “Our development collaboration with Novartis, one of the finest healthcare companies in the world, has been outstanding and I am now very pleased to extend this to a full licensing agreement for the new product. This agreement is potentially an important step towards Orexo becoming a sustainable profitable pharmaceutical company. We are convinced that Novartis will make the new product a success.”


– Ends –

For more information, please contact:
Torbjörn Bjerke, President and CEO, Orexo
Tel: +46 (0) 708-66 19 90
E-mail:  

Johan Andersson, Investor Relations Manager, Orexo
Tel: +46 (o) 702-10 04 51
E-mail:  


Notes to Editors

About Orexo
Orexo is a pharmaceutical company focusing on developing treatments for pain and inflammation. The company has four products on the market as well as a competitive product portfolio in late stages of development. Sales and product development are mainly carried out through worldwide partnership agreements with larger pharmaceutical companies. Orexo has 128 employees, and has its head office located in Uppsala, Sweden. More information can be found at www.orexo.com.

Product portfolio
Commercialized products with distribution- and marketing agreements

Product Indication Status
AbstralTM Breakthrough cancer pain Marketed in EU, Phase III in US and Japan Partnered with: ProStrakan, Gedeon Richter, Hospira, Kyowa Hakko Kirin, Neopharm and NovaMed
EdluarTM Insomnia FDA approved, launched in the USA Partnered with Meda
Diabact® UBT / Heliprobe®System Diagnosis - Helicobacter pylori Marketed in EU and other territories*
*Marketed through Kibion AB, subsidiary of Orexo

Partnered development projects
Product Indication Development phase Partner(s)
OX-NLA Rhinitis Phase III-ready Meda
OX-MPI Pain, inflammation Pre-clinical development Boehringer Ingelheim
OX17 Certain disorders Phase II/III Novartis

Prioritized projects for which licensing discussions have begun
Product Indication Development phase
OX914 COPD/Asthma Phase II
Arachidonic Acid Franchise
(OX2477/OX-CLI) Asthma/COPD Pre-clinical
OX641 Migraine Pre-clinical
OX-PKX Various projects using the PharmaKodex platform Formulation

Projects with potential for further development
OX219 Opioid addiction Ready for clinical studies
OX30 Chronic pain Pre-project

More information can be found at www.orexo.com.

Note:
This is information that Orexo AB (publ) is required to disclose pursuant to the Swedish Securities Markets Act. The information was provided for public release on August 28, 2009 at 08:00 CET.

Orexo

Orexo AB (publ) is a pharmaceutical company, focusing on development of new, patented drugs by combining well-documented substances with innovative technologies, and the development of new treatments for respiratory and ...

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Orexo signs exclusive worldwide license agreement for a novel formulation