Orexo AB focuses its business and reduces costs

Orexo AB focuses its business and reduces costs

 

Uppsala, Sweden - March 6, 2012 - Orexo AB is focusing its development
activities to the three proprietary programs OX219, OX51 and OX27. The total
requirement for resources will thereby be reduced with up to 35 full time
employees.
The personnel reduction, which will have full effect in 2013, is expected to
lower the costs by a total of SEK 30 million annually. Negotiations with trade
union representatives will commence immediately. The reduction in personnel is
expected to be completed during the second quarter of 2012.
"The focus of our business activities will now be fully in line with Orexo's
strategy and we shall exclusively invest in further development and
commercialization of our proprietary products. This means that we are directing
all our resources towards our key later stage development programs," says CEO
Anders Lundström.
The three programs, OX219, OX51 and OX27 are based on proprietary drug delivery
technologies applied to well-known substances with licensed uses. This results
in programs with significantly lower development risk, lower cost and shorter
development time than traditional drug development programs. This approach was
used to successfully develop Orexo's pain product Abstral® and the insomnia
product Edluar™.
Orexo has today 110 employees, of which approximately 80 work in research and
development.

For further information, please contact:
Anders Lundström, CEO
Phone: +46 70-667 22 66
E-mail: anders.lundstrom@orexo.com

About Orexo
Orexo develops and markets pharmaceuticals based on proprietary drug delivery
technologies applied to well-known substances. The company's largest product is
Abstral, a treatment of breakthrough cancer pain. Orexo’s shares are listed on
the Stockholm Stock Exchange and Danish Novo A/S and Swedish HealthCap are the
largest shareholders. More information can be found at www.orexo.com

Note: This is information that Orexo AB (publ) discloses pursuant to the
Financial Instruments Trading Act and/or Securities Market Act. The
information was provided for public release on March 6, 2012 at 11:00 CET.
This press release 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 take precedence.