Year-end Report, January - December 2006

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: zsolt.lavotha@orexo.se 
Claes Wenthzel, Executive Vice President and CFO, Tel: +46 (0)18-780 88 44, 
e-mail: claes.wenthzel@orexo.se 




To the editors 

About Orexo 
Orexo is a pharmaceutical company developing new pharmaceutical drugs within areas currently subject to considerable unmet medical needs. Orexo applies its broad expertise in medicine and pharmaceuticals to the further development of existing pharmaceutical substances. By combining well-documented compounds with its own patented drug delivery methods and its unique expertise in “dry formulations” (for example, tablets), Orexo is able to develop new patented pharmaceuticals.

At present, the company has two products on the market, one product submitted for registration on the European market, two products in late clinical development phase, one of which has been out-licensed in the US, Europe and Japan, and two projects in pharmaceutical formulation phase. Orexo has adopted an active intellectual property rights strategy and has, since its inception, built up an extensive patent portfolio to protect its products and technologies.
Orexo is listed on the OMX Nordic List Mid Cap (ticker: ORX). 
www.orexo.com 

About drug delivery 
The science of drug delivery can be summarized as the process of ensuring that the active substance in a pharmaceutical product is optimally delivered to the site of action. The demand for drug-delivery products is increasing rapidly due to the fact that these new pharmaceuticals can for example offer shorter time to onset of effect or improved safety profiles. 

Many pharmaceutical products on the market today have shortcomings - for example, they are slow-acting, have side effects, must be administered frequently or perhaps can only be injected. This is why demand for technologies that can make already existing products more efficient is increasing rapidly.