Orexo to acquire Biolipox - Update As previously announced in a press release on October 15, 2007 Orexo AB (OMX Nordic List, Mid Cap: ORX) and the principal owners of Biolipox AB have reached an agreement under which Orexo will acquire Biolipox, an innovative Swedish research-based pharmaceutical company that develops new therapies for inflammatory diseases, including pain management and respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD). Update Orexo is today releasing further information pertaining to its planned acquisition of Biolipox through an updated presentation (please see attachment). This presentation is also available and posted on Orexo's website (www.orexo.com) The new information consists of a detailed review of Biolipox' product pipeline, including clinical data from BLX-NLA product candidate for the treatment of rhinitis, a general plan regarding what product candidates will be prioritized, quantification of expected cost savings and synergies estimated to approximately SEK 40m annually, further details concerning the valuation of Biolipox, and the fact that ABG Sundal Collier has rendered a fairness opinion. The transaction will take place through an issue in kind to Biolipox's shareholders. The deal values Biolipox at SEK 856 million, and payment will be made through an issue of a maximum of 8,560,000 Orexo shares. The final structure of the transaction is dependent on Orexo's completion of due diligence of Biolipox. The deal is also conditional upon approval of the issue in kind by an extraordinary general meeting of Orexo and customary regulatory approvals. The acquisition will create an innovative specialty pharma company with a broad product pipeline, global partnerships with major financial potential, and established sales channels. Substantial shareholder value will be created through operational synergies and by optimizing the combined product pipeline. Revised timetable Orexo has decided to postpone the previously announced extraordinary general meeting until November 13, 2007. The acquisition is expected to be completed at the end of November 2007. For further information, please contact: Zsolt Lavotha, President and CEO, Orexo Tel: +46-18-780 88 12 E-mail: zsolt.lavotha@orexo.com Claes Wenthzel, Executive Vice President and CFO, Orexo Tel: +46-18-780 88 44 E-mail: claes.wenthzel@orexo.com Torbjörn Berke, President and CEO, Biolipox Tel: +46-8-5248 3102 E-mail: torbjorn.bjerke@biolipox.com 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, one in clinical phase I, one in formulation phase and two in early development phase. Orexo is listed on the OMX Nordic List Mid Cap (ticker: ORX). www.orexo.com About Biolipox Biolipox is a Swedish research-intense pharmaceutical company that focuses on developing novel, effective drugs for treating respiratory diseases and other inflammatory diseases, such as asthma, chronic obstructive pulmonary disease (COPD), rhinitis (hay fever), pain and arthritis (inflammatory joint diseases). By drawing on its knowledge in the inflammatory research area, particularly arachidonic acid metabolism, Biolipox has created a portfolio of potential blockbusters in these therapeutic areas. The company has 52 employees and is owned by Health Cap, Apax Partners, Sofinnova Partners, SLS Venture, Crédit Agricole Private Equity, Auriga Partners and the scientific founders. www.biolipox.com
Orexo to acquire Biolipox - Update
| Source: Orexo AB