Orexo receives million 5£ milestone payment for Abstral® in Europe and Zubsolv® continues strong market share growth in the US


Uppsala, Sweden – December 17, 2014 – The annual sales of Abstral in Europe has
passed million 60€ during 2014, which triggers a milestone payment of million 5£
(approx. million 60 SEK) to Orexo AB (”Orexo”) from the commercial partner in
Europe ProStrakan Group plc (”ProStrakan”).

According to the agreement from June 2012, with ProStrakan for Abstral sales in
Europe, Orexo receive a fixed and non-conditional royalty of million 55£, a
variable royalty for annual sales exceeding million 42.5€ and milestone payments
of up to million 10£. The threshold for the variable royalty was reached during
Q3 and Orexo will receive royalty for all sales of Abstral in Europe in Q4. The
fixed and non-conditional Abstral royalties will reach million 174 SEK for the
full year. These fixed royalties represents an amortization of the final fixed
and unconditional payment related to the agreement with ProStrakan. The fixed
payment will be fully recognized in the P&L by May 2015 and will have no cash
impact, as the payments have all been received.

”I am pleased to follow the continued success of our commercial partner
ProStrakan with Abstral in Europe. The continued development of Abstral in
Europe is a strong evidence of the patient and physician preference of the
attributes of Orexo’s sublingual products. The development of Abstral enables
Orexo to further invest in the commercialization and development of Zubsolv,
accelerating the positive momentum for the product and the overall market for
opioid dependence treatment.” said Nikolaj Sørensen, CEO and President of Orexo
AB.

The demand and market share of Zubsolv continue a positive development. The last
four weeks Zubsolv has reached 5.6% of the market (daily dosages) compared to
4.2% the last month of Q3. The growth in Q4 can be equally explained by the
exclusive agreement with the Managed Medicaid provider WellCare and growth from
increased demand from patient with private health insurance and patients paying
out-of-pocket. Exclusive agreements are associated with higher rebates and have
a negative short term impact on the gross to net revenue ratio, but have proven
to drive growth in the more profitable non-exclusive business segments.

For further information, please contact:
Nikolaj Sørensen, President and CEO
Tel: +46 (0)703-50 78 88, E-mail: ir@orexo.com

Henrik Juuel, CFO and EVP
Tel: +46 (0)722-20 94 77, E-mail: ir@orexo.com

About Orexo AB
Orexo is a specialty pharma company with commercial operations in the United
States and R&D in Sweden developing improved treatments using proprietary drug
delivery. The company is commercializing its proprietary product, ZUBSOLV®
sublingual tablets, for maintenance treatment of opioid dependence, in the
United States. The ZUBSOLV sublingual tablet is a novel formulation of
buprenorphine and naloxone using Orexo’s extensive knowledge in sublingual
technologies. Orexo has a portfolio of two approved and revenue generating
products currently marketed under license in the US, EU and Japan. Orexo AB,
with its headquarters in Sweden, is listed on Nasdaq Stockholm Exchange (STO:
ORX) and its American Depositary Receipts (ADRs) trade on the OTCQX marketplace
in the U.S. under the symbol, “ORXOY”. The largest shareholders are Novo A/S and
HealthCap.

For information about Orexo and Zubsolv, please visit www.orexo.com and
www.zubsolv.com.

About Abstral
Abstral is the leading fast-acting fentanyl product in EU intended for treatment
of breakthrough pain in cancer patients. Abstral employs Orexo’s proprietary
sublingual delivery technology (under the tongue). After the product development
Abstral was out-licensed to Kyowa Hakko Kirin Co., Ltd and the European
subsidiary ProStrakan Group plc, which still holds the rights in the EU and
Japan, whereas Galena Biopharma Inc holds the rights for Abstral in the US.

For information about Abstral, please visit www.abstral.com.

Orexo AB (publ) discloses the information provided herein pursuant to the
Financial Instruments Trading Act and/or the Securities Markets Act. The
information was submitted for publication at 8:45am CET on December 17, 2014.

Attachments

12175983.pdf