Interim Report, January - September 2005

Key events during the period · Net sales amounted to MSEK 59.0 (year-earlier period: 85.9) [1,2] · After tax, a net loss of MSEK -7.9 was reported (27.4) · Earnings per share amounted to a loss of SEK -211.70 (786.19) · RapinylTM (OX 20) – Orexo received a milestone payment of MUSD 6.5 (approx. MSEK 50), following completion of clinical study · New recruitment and reorganization implemented to facilitate continued expansion – Claes Wenthzel appointed new Executive Vice President and CFO and Thomas Lundqvist, one of Orexo’s founders, appointed new Executive Vice President and CSO. · Extraordinary General Meeting was held at which Hans-Peter Hasler was appointed new Member of the Board Third Quarter 2005 · Net sales amounted to MSEK 56.1 (72.1) [1,2] · After tax, a net profit of MSEK 27.4 was reported (45.4) · Earnings per share amounted to MSEK 723.15 (1,263.11) For further information, please contact: Zsolt Lavotha, President and CEO, tfn +46-18-780 88 00, e-mail: Claes Wenthzel, vice vd och CFO, tfn +46-18-780 88 00, e-mail: About Orexo Orexo is a product focused drug delivery company that develops proprietary pharmaceuticals to address areas of unmet therapeutic need. Orexo exploits its multidisciplinary capabilities to assess areas of therapeutic need that can be met by developing proprietary pharmaceuticals based on well documented pharmacologically active compounds that incorporate Orexo´s proprietary drug delivery technologies. The Company has commercialized one product, three product candidates in the clinical phase - where of one is out-licensed in North America and Japan - two product candidates in the formulation development phase and one project at an early research stage of development. About drug delivery Drug delivery is about finding methods to make the active component of a drug to function in the optimal manner through new preparations or formulations. Many of the pharmaceuticals sold today have shortcomings - for example, they may be slow-acting, product side-effects, require frequent administration in high dosages, or perhaps can only be injected. This is why Orexo believes that the demand for new procedures that can enhance treatment efficiency is increasing sharply. Several best-selling prescription drugs in the U.S. has been improved through drug delivery. This text is an unofficial translation of the Interim Report prepared in Swedish. In the event of any discrepancy between the English translation and the official Swedish version, the Swedish version shall prevail. -------------------------------------------------------------------------------- [1] Unless stated otherwise, this interim report refers to the Group. Figures within parentheses denote results for the corresponding period during the previous year. All share-related data refers to information prior to the split authorized by the Annual General Meeting on April 20 that is conditional on agreements between the principal owners. At the time of the presentation of this report, the conditions have not been fulfilled. 2 Figures for 2004 have been restated in accordance with IFRS. For more information, see page 16