Orexo receives 2 million EURO in milestone payment for approval of the pain product Rapinyl

06-Sep-2006

Orexo´s European licensing partner ProStrakan Group plc. has announced submission of a New Drug Application for approval of the pain product Rapinyl in Europe. Orexo receives a milestone payment of 2 million EURO in connection with this announcement.

The license agreement with ProStrakan Group plc. provides for in addition to the already received up-front license fee payment of 5 million EURO and this milestone payment of 2 million EURO, additional regulatory approval and sales milestone payments, which can total up to 15 million EURO. When ProStrakan introduces Rapinyl on the European market, the agreement also provides for double-digit royalties upon commercial sales. Furthermore, the licensing agreement provides Orexo with the right to - in parallel with ProStrakan - market Rapinyl in the Nordic market.

Rapinyl is a product for the treatment of acute pain. Breakthrough cancer pain is the first indication for Rapinyl. It is based on Orexo´s unique proprietary technology for sublingual administration, where a fast dissolving tablet is placed under the tongue where it rapidly disintegrates into ordered mucoadhesive units of the active substance. This novel pharmaceutical preparation combines the properties of fast dissolution and fast onset of effect.

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