Orexo takes leading position in diagnostic breath tests through acquisition

Orexo takes leading position in diagnostic breath tests through
acquisition

Uppsala, July 14, 2011 - Orexo AB (STO: ORX) has, through its subsidiary
Kibion AB, acquired the German company Wagner Analysen Technik GmbH
(WAT). WAT is a leading manufacturer of IRIS instruments and substrates
for diagnostic breath tests. The acquisition turns Kibion into a
complete solutions provider of both diagnostic breath tests and
instruments, with a leading position in Helicobacter pylori tests.

Kibion already markets two products for the diagnosis of Helicobacter
pylori (Diabact® UBT and Heliprobe® System), the bacterium that is
implicated in gastric ulcers and gastric cancers. The products are sold
in over 50 markets worldwide and sales amounted to MSEK 40 in 2010. The
EU market for such tests accounts for approximately MSEK 160 out of
which Kibion today has 5 per cent.

WAT manufactures and markets best in class IRIS instruments, which
employs detectors of non-radioactive13C-labelled stable isotope based on
infra-red technology. The German company is the market leader with over
600 instruments installed worldwide. Furthermore, the Company's
instruments are widely recognized for their high precision, reliability
and ease of use. WAT is currently represented with its products in over
60 markets worldwide and 400 instruments are in use at European
diagnostic institutions.

Gaining access to WAT's established customer base will enable Kibion to
drive sales its existing products, including Diabact®UBT. The
acquisition also provides Kibion with a broader platform through which
it can develop and commercialize other diagnostic breath tests. IRIS
instruments can be used in breath tests for the diagnosis of a number of
disorders affecting the gastroenteric and hepatic systems, as well as in
other areas of internal medicine. More than 20 tests can currently be
run on the IRIS system, among them Diabact®UBT.

The purchase price amounts to 1.4 million EUR and is fully financed
through a credit facility. If clearly defined sales targets are
achieved, additional consideration will be paid. The acquisition is
expected to contribute positively to Orexo's results within 12 months.

“Through this acquisition, Kibion strengthens its operations and is
provided a substantial potential for future growth. A larger Kibion will
have greater strategic options, and allows for a more independent
operation over time. To support such transformation, Kibion's Board will
be strengthened with independent directors, commencing with appointment
of Henrik Juuel who brings substantial leadership, financial, and
commercial expertise,” says Anders Lundström, President and CEO of Orexo
AB.

Altogether, these exciting developments for Kibion will furthermore
facilitate Orexo's strategy to focus its proprietary pharmaceutical
product development on its well-established re-formulation technologies,
where the new products once approved will be market by Orexo in US or
EU.

Henrik Juuel holds a master's degree in Finance and Business
Administration and brings with him close to 20 years of experience
within the life science industry. His work experience spans across many
line functions and for the last five years he has served as CFO of
larger companies including GN ReSound A/S and NNE Pharmaplan A/S. He has
significant experience in change management and post-M&A business
integration, which are important aspects in the next phase of Kibion's
development.

Contact details:

Anders Lundström, President and CEO, Orexo AB
Tel: +46 706 67 22 66
Email: anders.lundstrom@orexo.com (anders.lundstrom@orexo.com)

Petter Bäckgren, CEO, Kibion AB
Tel: +46 705 55 69 97
Email: petter.backgren@kibion.com (petter.backgren@kibion.com)

About Orexo

Orexo is a pharmaceutical company focusing on developing treatments for
pain and inflammation. The company has four commercialized products,
several projects developed in partnership as well as three proprietary
development programs. Orexo's registered products are Abstral® for the
treatment of break through cancer pain, sold by Kyowa Hakko
Kirin/ProStrakan Group plc. in Europe and in the USA, the sleeping pill
Edluar™, sold by Meda in the USA, as well as two products for the
diagnosis of Helicobacter pylori which are being marketed by the
subsidiary Kibion. More information can be found at
www.orexo.com (http://www.orexo.com/).

Note
Orexo AB (publ) discloses the information provided in this press release
pursuant to the Securities Markets Act. The information was provided for
public release on July 14, 2011 at 08:00 a.m. CET. This press release
has been prepared in both Swedish and English. In the event of any
discrepancy in the content of the two versions, the Swedish version
shall take precedence.