Orexo to acquire Biolipox - Update

26 October 2007 · Pressrelease · Regulatory
As previously announced in a press release on October 15, 2007 Orexo AB (OMX Nordic List, Mid Cap: ORX) and the principal owners of Biolipox AB have reached an agreement under which Orexo will acquire Biolipox, an innovative Swedish research-based pharmaceutical company that develops new therapies for inflammatory diseases, including pain management and respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD).

Update
Orexo is today releasing further information pertaining to its planned acquisition of Biolipox through an updated presentation (please see attachment). This presentation is also available and posted on Orexo’s website (www.orexo.com)

The new information consists of a detailed review of Biolipox’ product pipeline, including clinical data from BLX-NLA product candidate for the treatment of rhinitis, a general plan regarding what product candidates will be prioritized, quantification of expected cost savings and synergies estimated to approximately SEK 40m annually, further details concerning the valuation of Biolipox, and the fact that ABG Sundal Collier has rendered a fairness opinion.

The transaction will take place through an issue in kind to Biolipox's shareholders. The deal values Biolipox at SEK 856 million, and payment will be made through an issue of a maximum of 8,560,000 Orexo shares. The final structure of the transaction is dependent on Orexo's completion of due diligence of Biolipox. The deal is also conditional upon approval of the issue in kind by an extraordinary general meeting of Orexo and customary regulatory approvals.

The acquisition will create an innovative specialty pharma company with a broad product pipeline, global partnerships with major financial potential, and established sales channels. Substantial shareholder value will be created through operational synergies and by optimizing the combined product pipeline.

Revised timetable
Orexo has decided to postpone the previously announced extraordinary general meeting until November 13, 2007. The acquisition is expected to be completed at the end of November 2007.