Orexo AB Acquires Commercial Rights of Abstral in United States and Kyowa Hakko Kirin Co., Ltd.'s ProStrakan Group plc Acquires Rights in European Union and Rest of the World-COMPLETE STORY

Orexo AB announced that it has together with Kyowa Hakko Kirin Co., Ltd.'s (KHK) ProStrakan Group plc reconfigured the commercial rights to the product, Abstral. ProStrakan will acquire the rights to Abstral for Europe and will also acquire Orexo's interests in Orexo's joint venture business covering the Nordic region (Sweden, Norway, Finland and Denmark). Orexo will acquire all rights to Abstral in the United States as from December 31, 2012. ProStrakan will pay to Orexo a total net cash consideration of GBP 55.0 million, of which GBP 22.5 million will be paid in 2012, GBP 20.0 million in 2013 and GBP 12.5 million in 2014. ProStrakan will make double digit royalty payments to Orexo once annual sales of Abstral exceed certain levels in European Union (EU). In addition, Orexo is entitled to further milestone payments, when EU annual sales reach certain levels. The agreement for EU is valid until the end of 2019. As part of this alignment of Abstral rights, ProStrakan is also acquiring all existing Abstral partnership agreements in the rest of the world (RoW), excluding Japan, where Abstral is already out-licensed to ProStrakan's parent company, KHK. Orexo will continue receiving sales, development milestones and double digit royalty payments for ProStrakan's sales of Abstral in the RoW. Completion of the transaction in the United States is expected by January 1, 2013 while EU and RoW were completed as of June 1, 2012. Orexo will receive fixed payments of SEK 610 million.