Interim Report January-March 2008

Executing in line with the strategy to build a profitable company

Period in brief
•Net revenues amounted to MSEK 24.0 (6.4)
•The loss after tax was MSEK 62.2 (loss: 37.9)
•Earnings per share amounted to a loss of SEK 2.88 (loss: 2.73)

Key events first quarter of 2008
•Potential new mechanism for treatment of asthma and COPD published.
•Rapinyl™/Abstral approved for marketing in Sweden.
•OX-NLA nasal spray shows excellent local tolerance for patients with hay fever.
•Report result confirms clinical effect of OX17 for treatment of GERD.

Key events after period end
•Orexo’s Annual General Meeting held on April 3.
•Meda AB acquired the exclusive world rights to two of Orexo’s patented drugs: Sublinox™ (OX22) and OX-NLA.
•A Phase I study of OX19 confirms that Orexo´s new nasal spray formulation for the administration of desmopressin, a peptide used for treatment of incontinence, shows significantly better uptake than nasal sprays currently on the market. Next step for Orexo is to seek partnership for further development of the product.

Torbjörn Bjerke, President and CEO, comments:
“Our goal is to develop Orexo into a profitable pharmaceutical company. Therefore, it is pleasing to note that Orexo has taken major strides in this direction during the past quarter.

The agreement we signed with Meda is a distinct step closer to our goal and is added to the already successful cooperation we have with ProStrakan, Endo Pharmaceuticals, Kyowa Haako and Boehringer Ingelheim. It is satisfying that the agreement with Meda covers a product with its origin in Biolipox and a product with its roots in Orexo. This further strengthens my conviction about the benefit of the merger of the two companies last year.

During the period Rapinyl™/Abstral was approved for marketing in Sweden, which was an important success for us. We are now looking forward to an EMEA decision during the current half year to be able to launch the product in cooperation with ProStrakan during the third quarter of the year. The product will be marketed under the name Abstral.

We are continuing to work at a high pace to capitalize on our valuable portfolio of projects and to generate new commercial successes thereby creating long-term profitability and shareholder value.”

For report in full format, see enclosed link to pdf.

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

Claes Wenthzel, Executive Vice President & CFO, Orexo AB
Tel: +46 (0)18-780 88 44