Interim report, January-June 2012

STRONG REVENUE GROWTH AND CASH FLOW. ALL CLINICAL STUDIES FOR KEY PROJECT OX219 COMPLETED AHEAD OF PLAN.

Unless otherwise stated in this report, all data refers to the Group. Figures in parentheses relate to the corresponding period in 2011.

During the period

• Net revenues amounted to MSEK 166.5 (96.7).
• Abstral royalty revenues increased by 66 percent to MSEK 55.8 (33.6).
• Cash flow from operating activities amounted to MSEK 172.4 (-31.2).
• Earnings after tax were MSEK -32.8 (-65.2).
• EBITDA amounted to MSEK -24.7 (-56.3).
• Earnings per share were SEK -1.10 (-2.66).
• Cash and cash equivalents amounted to MSEK 426.1 (242.5).
• Orexo acquired all US rights for Abstral and will receive MSEK 610, whereof MSEK 248 was paid in June 2012.
• Positive results from studies supporting registration in the OX219 project.
• Notice of Extraordinary Shareholders Meeting on July 13, 2012.
  
  

For further information, please contact:
Anders Lundström, CEO, tel: +46 (0)706 67 22 66, e-mail: anders.lundstrom@orexo.com
Carl-Johan Blomberg, CFO, tel: +46 (0)706 33 67 11, e-mail: carl-johan.blomberg@orexo.com

CEO’s comments
We have had a successful second quarter and the development is completely in line with the directions presented at our Capital Markets Day on May 3 this year, where we presented that we want to develop and commercialize our own products in the US.

The main events during the quarter were the positive results in the registration studies for OX219 and the new Abstral agreement with ProStrakan.

Our two pivotal studies for OX219 were completed faster than planned and we are very pleased with the results. This gives us an opportunity to be the first company to launch a reformulated product against opioid dependence on the US market, today worth over USD 1.3 billion with a growth of 18 percent 2011 over 2010.

The new agreement with ProStrakan gives us the US rights for Abstral and generates fixed royalty and other payments of MGBP 55 (approximately MSEK 610) in total for the product rights in the EU and in addition future royalty revenues from both the EU and other markets. These payments increase our financial stability, flexibility and generate a strong cash flow in 2012.

Our strengthened financial position makes it possible for us to propose a share buyback program, to be voted on at the Extraordinary General Meeting on July 13.

The US rights for Abstral, together with the positive study results for OX219 and improved financial position, provide us with opportunities to look for a commercial solution in the US in order to fully exploit the potential of both Abstral and subsequently OX219 in this market.

Anders Lundström
President and CEO

Note
Orexo AB publ discloses the information provided herein pursuant to the Securities Markets Act. The information was provided for public release on July 12, 2012, at 8:00 a.m. This report 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 prevail.

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