Interim report, January-March 2012

Unless otherwise stated in this report, all data refers to the Group. Figures in
parentheses relate to the corresponding period in 2011.

OREXO’S REVENUES FROM
ABSTRAL® CONTINUE TO INCREASE

During the period

  · Net revenues amounted
to MSEK 83.6 (41.5).
  · Abstral royalty revenues increased by 39 percent to
MSEK 19.4 (14.0).
  · Earnings after tax were MSEK -16.2 (-39.2).Cash flow from
operating activities was a MSEK -32.9 (16.3).
  · EBITDA was MSEK -12.1 (
-34.7).
  · Earnings per share were SEK -0.54 (-1.67).
  · Cash and cash
equivalents amounted to MSEK 212.4 (150.3).
  · Focused operations will reduce
costs with approximately MSEK 30 on an annual basis.

After the close of the
period

  · Three new Board members were elected at the Annual General Meeting
on April 11.

 
CEO’s comments

I am pleased to report that sales of the
pain product Abstral continue to increase. During the first quarter, sales rose
39 percent compared with the corresponding period in 2011. Abstral shows a
particularly strong growth in our major markets in Southern Europe.

In the
US, Abstral is not until now able to compete on equal terms with other fast
-acting fentanyl products following the introduction of a joint risk management
system, known as REMS, in mid-March, which now also includes all products in the
class.

In the first quarter, we implemented a reorganization of Orexo, aimed
at focusing the operations on our proprietary development programs. These
programs are based on using our own patented formulation technology and
developing new products from already well-known substances. This method has been
successfully applied to the development of Abstral and Edluar. The benefits we
gain from this type of product development, include reduced development risk,
shorter development time and lower costs.

Development of our proprietary
projects proceeds according to plan. In the first quarter, we initiated
registration studies in the OX219 project and we continue to work intensively
toward the goal of submitting an application for regulatory approval in the
first half of 2013.
In the OX51 project, under development for treatment of
procedure-induced pain, preliminary work is under way in preparation for the
forthcoming registration studies.

I look forward to the Capital Markets Day
on May 3 in Stockholm. It is my intention to provide a clear picture of Orexo’s
potential to generate value through our commercially attractive products and
development programs.

Anders Lundström
President and
CEO

 
Teleconference
CEO Anders Lundström and CFO Carl-Johan Blomberg will
present the report at a teleconference today at 10:15 a.m. CET. Presentation
slides are available via the link and on the website.
Internet:
http://livecast.wehay.com/stockontv/120427/orexo/
Telephone: +44 (0) 20 3003
2666 - Standard International Access; 020 089 6377 - Stockholm Toll Free; 0808
109 0700 - UK Toll Free; 1 866 966 5335 - USA Toll Free
 

For further
information, please contact:
Anders Lundström, CEO, tel: +46 (0)706 67 22 66, e
-mail: anders.lundstrom@orexo.com
Carl-Johan Blomberg, CFO, tel: +46 (0)706 33
67 11, e-mail: carl-johan.blomberg@orexo.com
 
 (carl
-johan.blomberg@orexo.com)

Note
Orexo AB publ discloses the information
provided herein pursuant to the Securities Markets Act. The information was
provided for public release on April 27, 2012, at 8:00 a.m. This report 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 prevail.