Year-end Report, January - December 2006

Orexo 2006 – a year with improved financial results, without compromising investments for the future

“During 2006, we took a major stride toward registration of the Rapinyl™ pain product on the European market, we are preparing the completion of the Phase III program for the Sublinox™ (OX 22) insomnia product and OX 17, a product for treating GERD, we started a cooperation for the development of a new technology platform and we strengthened the organization further to be able to manage the company’s rapid growth,” says Zsolt Lavotha, President and CEO, Orexo AB. “We have a continuing aggressive development plan and our assessment is that we have laid the foundation for strong development in 2007.”

The year in brief
• Net sales increased to MSEK 132.0 (62.4)
• The loss after tax was MSEK 33.0 (loss: 43.2)
• Earnings per share amounted to a loss of SEK 2.46 (loss: 4.33)
• Filed registration application for the European market for the pain product Rapinyl™
• Application (IND) for conducting clinical study in the US on the insomnia product Sublinox™ (OX 22), submitted to FDA
• Signed distribution agreement for the pain product Rapinyl™ – licensing agreements previously signed for the North American, European and Japanese markets
• Initiated collaboration on a new technology platform for new products
• Completed an acquisition– strengthens position in stomach-ulcer diagnosis

Fourth quarter 2006
• Orexo received license revenues of MUSD 5.2 MUSD (approximately MSEK 38) from Endo Pharmaceuticals Inc. for Rapinyl™
• A collaboration with the medical technology company Doxa was initiated with the objective of developing innovative new pharmaceuticals based on a unique drug-delivery technology
• A distribution agreement for Rapinyl™ in Eastern Europe was signed with the Hungarian pharmaceutical company Gedeon Richter Ltd
• An application to conduct clinical study (IND) in the US was submitted to the FDA for completion of the Phase III program for the insomnia product Sublinox™ (OX 22)

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

For more information, please contact:
Zsolt Lavotha, President & CEO, Tel: +46 (0)18-780 88 12, e-mail:
Claes Wenthzel, Executive Vice President and CFO, Tel: +46 (0)18-780 88 44,