Orexo and Meda in a potential billion SEK deal

Orexo and Meda in a potential billion SEK deal

Meda has acquired the exclusive world-wide commercialization rights from Orexo
of two patented drugs in late development phase; Sublinox and OX-NLA.

Sublinox (treatment of insomnia) contains the well-documented active substance
zolpidem, one of the world's most used substances for this disorder. Sublinox
uses a unique and patented tablet formulation for fast and effective absorption.
A recent phase III study confirmed that Sublinox gave faster onset of action
than other zolpidem tablet formulations. Regulatory submission to the Food and
Drug Administration (FDA) in the United States is expected before the 3rd
quarter 2008.

OX-NLA is a patented nasal spray formulation with the antihistamine substance
cetirizine. The liposomes in OX-NLA give the product unique features. OX-NLA is
being documented for the treatment of allergic and non-allergic rhinitis, one of
Meda's major therapeutic areas. The product is entering phase III and Meda will
fund continued development. Meda also has exclusive rights to develop and
commercialise combination products based on OX-NLA.

As consideration for exclusive world-wide commercialisation rights for Sublinox
and OX-NLA, Meda has paid 20 MUSD. Meda has also agreed to the following one
time milestone payments for each product, when a yearly sales level is reached; 


	        Sublinox	OX-NLA
At FDA approval	30 MUSD	15 MUSD
Sales milestones	When net sales> 150 MUSD> 200 MUSD> 400 MUSD	Payment
20 MUSD
20 MUSD
20 MUSD	When net sales> 150 MUSD> 300 MUSD
	Payment
20 MUSD
20 MUSD

Orexo will receive double digit royalty on net sales. Meda's gross margin for
Sublinox and OX-NLA is estimated to become higher than 70%.

“This is a landmark event for Orexo. We believe Meda is going to be an excellent
marketing partner for Sublinox and OX-NLA with their pan-European and US
presence” said Torbjörn Bjerke, Orexo's President and CEO. We believe Meda
provides Orexo a commercial partner with global reach”. 

“I'm really glad that two Swedish based pharma companies managed to secure this
deal. We strengthen Meda's pipeline and add another significant marketing
opportunity in the US in the near term with Sublinox”, stated Anders Lönner, CEO
Meda.

For more information, please contact: 
Torbjörn Bjerke, President and CEO, Orexo AB
Tel: +46 (0)708-66 19 90
E-mail: torbjorn.bjerke@orexo.com

Claes Wenthzel, Executive Vice President & CFO, Orexo AB 
Tel: +46 (0)18-780 88 44 
E-mail: claes.wenthzel@orexo.com



About Orexo
Orexo is a specialty pharmaceutical company, focusing on development of new,
patented drugs by combining well-documented substances with innovative
technologies, and the development of new treatments for respiratory and
inflammatory diseases.

Orexo has a broad and competitive late-stage product portfolio, including two
marketed products, five products in clinical phase and two undergoing
registration. 

To date, Orexo have out-licensed the market rights for Rapinyl for the US, the
EU and Japan markets, and signed a research collaboration with Boehringer
Ingelheim regarding the development of a new class of drugs to treat pain and
inflammation. Also, Orexo has established a Nordic sales force by entering into
a joint venture with ProStrakan.

Orexo has head office in Uppsala and is listed on the OMX Nordic Exchange
Stockholm, Small Cap (ticker: ORX). Find out more, visit www.orexo.com

About Meda 
MEDA AB (publ) is an international specialty pharma company that concentrates on
marketing and market-adapted product development. Acquisitions and long-term
partnerships are fundamental factors that drive the company's strategy. Meda is
represented by its own organisations in 26 countries and has more than 1 500
employees within marketing and sales. Meda's products are sold in approximately
120 countries world-wide. The Meda share is listed under Large Cap on the OMX
Nordic Stock Exchange. Find out more, visit www.meda.se.