Orexo acquires PharmaKodex

The company has a number of ready to partner preclinical and early clinical projects focused on improving oral, sublingual and transdermal medication.

Orexo will acquire the company for a consideration payable in two tranches, with the first tranche paid in new Orexo shares and the second tranche payable either in new Orexo shares or cash at Orexo’s option.

The transaction also provides for further conditional payments, based on the financial profits from licenses of existing PharmaKodex programs and technologies and certain milestones, but no royalties will be due on such programs or technologies.

The company’s pipeline includes a preclinical program for rapid, sustained relief of migraine, in addition to its clinical stage lead program PKX219 which is a fast-acting, easy-to-use combination of buprenorphine and naloxone for opioid-addiction therapy, with clinical studies ongoing in 2009 and a prospective launch date subject to the necessary approvals of 2010/2011, said Orexo.

The acquisition is part of Orexo’s fundamental strategy to develop superior drug products using well-established, effective drug molecules by applying the very best technology to make delivery of those drugs faster, safer and/or more effective, according to Orexo.

In the integration of PharmaKodex, five employees are included. The acquired company currently has sufficient cash to cover all of its costs in 2009 and into 2010, by which time additional license income on certain of the acquired technologies is anticipated.

Torbjorn Bjerke, president and CEO of Orexo, said: PharmaKodex preclinical and early clinical programs will enhance Orexo’s pipeline in the areas of pain and opioid addiction, and provide opportunities for new product launches in 2010/2011, subject to the relevant approvals.