Year-end Report January - December 2007

Year-end Report January - December 2007

THE YEAR IN BRIEF
-Net revenues decreased to MSEK 76.8 (132.0) 
-The loss after tax was MSEK 172.6 (loss 33.0)
-Earnings per share amounted to a loss of SEK 11.42 (loss 2.46)
-Orexo reported positive results in completed comparative Phase III profile of
the SublinoxTM (OX22) study 
-Orexo signed a distribution agreement with Hospira in Asia for pain product
Rapinyl™    
-Orexo acquired Biolipox AB in November, forming an innovative specialty pharma
company
-The acquisition of Inflazymes research and development assets for treatment of
COPD, Chronic Obstructive Pulmonary Disease, and asthma was completed
-Torbjörn Bjerke new President and CEO of Orexo AB as of November 23
-Endo announced favorable results from the interim analysis of the Rapinyl ™
phase III clinical trial 

FOURTH QUARTER 2007
-Net revenues increased to MSEK 55.1 (51.7) 
-The loss after tax was MSEK 44,1 (loss 12.4)
-Earnings per share amounted to a loss of SEK 2.47 (loss: 0.91)

KEY EVENTS AFTER THE YEAR-END
-Orexo is reducing operating expenses, partly through capitalizing on cost
synergies in conjunction with the acquisition of Biolipox and partly through
optimizing the product portfolio by focusing on commercialization of prioritized
projects.  
-A so-called pre-NDA meeting with the US Food and Drug Administration (FDA) for
Sublinox™ (OX22) was carried out. The meeting affirmed Orexo's registration
strategy. Preparations for filing a registration application in the first
quarter of 2008 are proceeding according to plan.
-A pharmacokinetic study on OX19, involving healthy test subjects was completed.
 Analysis of the data is under way. The results are to provide a basis for
outlicensing. 
-For OX17, a pharmacodynamic study involving patients with reflux disease, was
finalized.  Analysis of the data is under way.
-For OX-NLA,  a tolerability study of a final formulation in patients with
rhinitis (hay fever) was completed. Analysis of the data is under way.

CEO COMMENTS - "COMMERCIAL COLLABORATIONS IN FOCUS FOR NEW AND STRONGER OREXO"
A strong company with an attractive portfolio - and with potential to strengthen
its position within pain and inflammation, areas with great medical needs.
That's the new Orexo after the Biolipox acquisition during fall 2007. Our
combined portfolio makes us an interesting partner to the large, international
pharmaceutical companies - and increases our potential to become a long-term
profitable and successful company.  

In 2008, Orexo's primary objective will be to promote our existing
collaborations and sign new license and development agreements. Accordingly,
Orexo is optimizing its combined project portfolio and prioritizing projects
deemed to have the best commercial potential. The actions we are now taking
strengthen the company's financial sustainability and conditions to achieve
commercial successes through entering into license and development agreements. 

Torbjörn Bjerke, President and CEO

For Year-end report in full format, see enclosed link to pdf.


FINANCIAL HEARINGS - FEBRUARY 15 AT 12.00 (CET)
You are welcome to follow CEO Torbjörn Bjerke´s presentation of the Year End
Report 2007 on Friday, February 15 at 12.00 CET (in English) at Operaterrassen,
Stockholm 
Moderator: Björn Andersson, Redeye 

Visit or follow the presentation: 

In Stockholm, at Operaterrassen 
Register at www.financialhearings.com, or via e-mail
hearings@financialhearings.com  alt. by phone +46(0)8-411 43 80 

Live telephone conference: 
+44 20 88 17 93 01, alt + 46(0)8-505 202 70, Confirmation code 644 2430 

Webcast 
http://www.financialhearings.com/hearing/financia1.nsf/(recordednew)/36A4ADC8FEA
67F01C12573D2002C386A?OpenDocument


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 and Chief Financial Officer, Orexo AB
Tel: +46 (0)18 - 780 88 44
Email: claes.wenthzel@orexo.com



TO THE EDITORS

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). 

www.orexo.com