Orexo establishes sales force in Nordic markets, by entering into a joint venture with ProStrakan

Orexo establishes sales force in Nordic markets, by entering into a joint
venture with ProStrakan

FOR MEDIA INFORMATION
Simon Vane Percy / Sarah Roberts
Vane Percy & Roberts
(T) 01737 821891 / 892
(F) 01737 821899
(e) simon@vanepercy.com / sarah@vanepercy.com 

Orexo (OMX Midcap:ORX.) has embarked on the next phase of its growth strategy by
entering into a joint venture agreement with ProStrakan in the Nordic
territories. Together Orexo and ProStrakan are establishing a sales operation,
which will be owned equally. The new entity will have Nordic sales rights for
both Orexo's and ProStrakan's portfolio which will include currently marketed
and future products, Tostrex®, Rectogesic® and Droperidol®, followed by
Rapinyl™, Orexo's patented product for the treatment of cancer break through
pain for which ProStrakan holds the European distribution rights, and
ProStrakan's product Sancuso® for the prevention of chemotherapy-induced nausea
and vomiting, both currently undergoing the European regulatory process.

ProStrakan's existing Swedish affiliate, ProStrakan AB, will be used as the
joint venture company. Orexo is investing £1.3 million (SEK 17.9 million),
through a directed share issue, to acquire 50% of it. The joint venture company
will initially trade as ProStrakan AB from its offices located at Malmo, Sweden.

Orexo has grown over the past years by focusing on developing proprietary
pharmaceuticals to address areas of unmet therapeutic need. This next phase in
its development will enable Orexo's products, at launch, to immediately benefit
from an established sales force in the Nordic region. 

Zsolt Lavotha, President and CEO of Orexo AB said: “We have, in a short time,
built up a market driven pharmaceutical company with a balanced advanced stage
product portfolio and a proven business model. This joint venture represents a
critical next step which will enable us to operate as an integrated
pharmaceutical company with a sales and marketing structure in the Nordic
region. This joint venture will furthermore provide us with market presence from
day one with the sales of Tostrex®, Rectogesic® and Droperidol®. At the same
time we estimate that we through our network - and as a complement to Orexo's
and ProStrakan's own products - will be able to generate more opportunities for
new products through in-licensing and/or acquisitions”

Dr Wilson Totten, Chief Executive of ProStrakan, said: “The Nordic countries are
very important to ProStrakan and teaming up with Orexo will considerably boost
the ability of both companies to enhance our performance in this market and
increase sales. Orexo is an ambitious, fast-growing and successful business and
it makes for a complementary partner for ProStrakan in this venture.

“Today's announcement effectively sees the further development of our
distribution network in major European countries and ensures that our products
are effectively marketed in a cash efficient manner to as broad an audience
across Europe as possible.”  

For further information, please contact: 

Zsolt Lavotha, President & CEO
Tel: +46 (0)18 780 88 12
Email: zsolt.lavotha@orexo.se

Claes Wenthzel, Executive Vice President & CFO
Tel: +46 (0)18 780 88 44
Email: claes.wenthzel@orexo.se

TO THE EDITORS

1. About Orexo 
Orexo is a pharmaceutical company which focuses on identifying suboptimal
therapeutic characteristics of existing products and developing more efficient
and effective delivery methods for them. By combining approved active substances
with Orexo's drug delivery technologies it is possible to significantly enhance
their therapeutic value, such as providing quicker onset of action or ease of
administration. This business model is aimed at bringing products to market
faster with lower development risk and costs. 

Orexo, which has its global headquarters and development laboratories in Sweden,
currently operates across the world through development, licensing and
distribution agreements in all major markets.

Orexo has a balanced portfolio with two products on the market, three in
registration and/or late stage clinical phase and two under formulation
development.

Orexo is listed on the OMX Nordic List Mid Cap (ticker;ORX).

2. About Orexo's technology
Orexo's product and development endeavours are based on its innovative expertise
in a wide variety of drug delivery formulations, with focus on dry formulations.


3. About Rapinyl™
Rapinyl™ is a patented product for the management of breakthrough cancer pain.
ProStrakan is already Orexo's partner for registration, development and
marketing of Rapinyl™ in Europe. 

Rapinyl™ also has registration, development and marketing agreements in the
following countries:
o	US - Endo Pharmaceuticals
o	Japan - Kyowa Hakko
o	Russia, Romania, Bulgaria - Gedeon Richter

4. About ProStrakan
ProStrakan Group plc is one of Europe's fastest growing speciality
pharmaceutical companies. ProStrakan is engaged in the development and
commercialisation of prescription medicines for the treatment of unmet
therapeutic needs in major markets. Based in the UK, the company also markets a
range of products in major EU markets through its commercial operations in the
UK, Germany, France and Spain. ProStrakan is listed on the main London Stock
Exchange. 

Sancuso®
Sancuso® is ProStrakan's proprietary transdermal patch containing granisetron,
proposed to be indicated for the prevention of chemotherapy-induced nausea and
vomiting.  It is currently undergoing the regulatory approval processes of both
Europe and the USA.

Tostrex®
Tostrex® is 2% testosterone gel for use in hypogonadal men.

Rectogesic® 
Rectogesic® is indicated for the relief of pain associated with chronic anal
fissures. 

Droperidol®
Droperidol® is a branded injectable solution used to treat post-operative nausea
and vomiting.