Orexo receives SEK 38 M from Endo Pharmaceuticals Inc.
Rapinyl™ is intended for the management of cancer-related breakthrough pain. It is based on Orexo’s unique and patented sublingual dosage method whereby a fast-dissolving tablet is placed under the tongue and the active substance is absorbed through the mucous membrane in the mouth. This new drug form is designed for rapid onset of action and predictable pain relief and also results in a simplified treatment of patients suffering from breakthrough pain.
Orexo and Endo Pharmaceuticals signed a license agreement in August 2004 that grants Endo Pharmaceuticals exclusive rights to the further development and marketing of Rapinyl™ on the North American market. Orexo received a signing fee of USD 10 M for this agreement. After completion of clinical tests, Orexo has also received a milestone-payment of SEK 51.6 M. In addition to the payments already received totaling about SEK 161 M, Orexo could also receive up to an additional USD 44.4 M (about SEK 328 M), comprising USD 10.4 M in license revenues and USD 34.0 M as a lump-sum payment on achievement of sales goals. The agreement also includes a double-digit royalty payment from future American sales.
In addition to the agreement with Endo Pharmaceuticals regarding the North America Market, market rights for Rapinyl™ are licensed to Kyowa Hakko Kogyo Co. Ltd pertaining to the Japanese market and to ProStrakan Group plc for the European market. Up to now Rapinyl™ has generated net revenues since the first license agreement 2003 of approximately SEK 218 M.
For further information, please contact:
Zsolt Lavotha, President and CEO, Orexo AB
+46 (0)18 780 88 12, e-mail: email@example.com
Claes Wenthzel, Executive Vice President and CFO, Orexo AB
+46 (0)18 780 88 44, +46 (0)708-62 01 22 , e-mail: firstname.lastname@example.org