Orexo has several collaboration arrangements with ProStrakan Group plc, one of Europe’s fastest growing specialty pharmaceutical companies which is listed on the London Stock Exchange and is active in research, development and sale of prescription drugs for cancer and other diseases.
ProStrakan has acquired the license rights for AbstralTM for Europe and North America. Orexo’s joint venture with the British company launched AbstralTM in Sweden in the third quarter of 2008, and ProStrakan itself launched the product in the UK and Germany at the beginning of 2009.
| Collaboration |
Abstral (Rapinyl in North America) |
| Geography |
Europe and North America |
| Type of agreement |
Licence agreement |
| Signed |
July 2008 for North America, at the same time the agreement for Europe was amended |
Terms
The European agreement gives Orexo double-digit royalties on ProStrakan’s sales of Abstral™ and Orexo may also receive up to EUR 19.9m when various sales levels are attained. The agreement states that Orexo may also receive up to EUR 3.25m when Abstral™ is approved in certain key European markets. Of this EUR 3.25m, Orexo has already received EUR 2.6m.
The agreement for North America gives Orexo double-digit royalties on ProStrakan’s sales of Abstral™. When the agreement was signed in July 2008, Orexo received USD 2m from ProStrakan. On top of this, Orexo may receive a total of USD 27m in connection with certain milestones relating to application, registration and sales levels.
Orexo and ProStrakan Group plc have a joint-venture sales company in Sweden, ProStrakan AB, which has the Nordic sales rights for both of the companies’ drugs. The portfolio comprises Abstral Tostrex, Rectogesic and Dridol, which are all specialist products. The company was founded in 2007 and is based in Uppsala.
About ProStrakan
ProStrakan is a rapidly growing specialty pharmaceutical company engaged in the development and commercialisation of prescription medicines for the treatment of unmet therapeutic needs in major markets. ProStrakan has approximately 200 employees. ProStrakan is headquartered in Scotland with commercial operations throughout the rest of the UK and continental Europe. In R&D, the Company's Development group is located at Galashiels in Scotland.