Orexo announces a licensing agreement for its pain product Rapinyl™ (OX 20) for the European market

Orexo AB and ProStrakan Group plc today announced that they have entered into a licensing agreement under which ProStrakan as of January 2nd, 2006, receives exclusive rights to register and market Rapinyl™ (OX 20) – Orexo´s patented product for management of breakthrough cancer pain – on the European market. In return for these rights, Orexo will receive an up-front license fee payment of 5 M EURO (approximately 47 MSEK) in addition to other license fees and payments based on development, regulatory and sales milestones, which total up to 17 M EURO (approximately 160 MSEK). When ProStrakan introduces Rapinyl™ (OX 20) 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™ (OX 20) on the Nordic market. “ProStrakan has the company profile, and sales organisation that is required for a successful introduction of Rapinyl™ (OX 20) on the European market", says Zsolt Lavotha, president and CEO of Orexo AB. " Rapinyl™ (OX 20) will be marketed and distributed by one of Europe’s fastest growing specialty pharma companies, with a sales organisation that will secure a fast market introduction and penetration in key European markets. This licensing deal futher provides us with the possibility of continuously focusing our development efforts on our current product portfolio and OX 17 in particular, and to intensify our efforts to identify an optimal licensing partner for OX 22 (Insomnia) and OX 17 (GERD)”. "Rapinyl™ (OX 20) will be a key product and fits extremely well with our oncology supportive care franchise”, said Wilson Totten, President and CEO of ProStrakan Group plc. “The market for Rapinyl™ (OX 20), its competitive profile and advantage combined with our strength as a marketing- and distribution partner in Europe, makes this an attractive strategic collaboration for both parties”. Rapinyl™ (OX 20) is an oral, fast-dissolving tablet of fentanyl for the treatment of breakthrough cancer pain. It is based on Orexo´s unique proprietary technology for sublingual administration. This novel pharmaceutical preparation provides rapid absorption of the active substance and a fast onset of action. The marketing rights for Rapinyl™ (OX 20) were licensed to Kyowa Hakko Kogyo Co. Ltd in 2003 regarding the Japanese market and to Endo Pharmaceuticals in 2004 for the North American 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