Orexo receives 2 million EURO in milestone payment

Orexo’s European licensing partner ProStrakan Group plc. has announced submission of a New Drug Application for approval of the pain product Rapinyl™ in Europe. Orexo receives a milestone payment of 2 million EURO in connection with this announcement – approximately 19 MSEK. The license agreement with ProStrakan Group plc. provides for in addition to the already received up-front license fee payment of 5 million EURO (approximately 47 MSEK) and this milestone payment of 2 million EURO (approximately 19 MSEK), additional regulatory approval and sales milestone payments, which can total up to 15 million EURO (approximately 140 MSEK). When ProStrakan introduces Rapinyl™ on the European market, the agreement also provides for double-digit royalties upon commercial sales. Furthermore, the licensing agreement provides Orexo with the right to - in parallel with ProStrakan - market Rapinyl™ in the Nordic market. Rapinyl™ is a product for the treatment of acute pain. Breakthrough cancer pain is the first indication for Rapinyl™. It is based on Orexo´s unique proprietary technology for sublingual administration, where a fast dissolving tablet is placed under the tongue where it rapidly disintegrates into ordered mucoadhesive units of the active substance. This novel pharmaceutical preparation combines the properties of fast dissolution and fast onset of effect. The marketing rights for Rapinyl™ is licensed to Kyowa Hakko Kogyo Co. Ltd for the Japanese market, to Endo Pharmaceuticals for the North American market and to ProStrakan Group plc for the European market. For more information, please contact; Zsolt Lavotha, President & CEO, Orexo AB +46 (0)18 780 88 12, e-mail: zsolt.lavotha@orexo.se Claes Wenthzel, Executive Vice President and CFO, Orexo AB +46 (0)18 780 88 44, +46 (0)708-62 01 22 e-mail: claes.wenthzel@orexo.se