Orexo establishes sales force in Nordic markets, by entering into a joint venture with ProStrakan
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Orexo (OMX Midcap:ORX.) has embarked on the next phase of its growth strategy by entering into a joint venture agreement with ProStrakan in the Nordic territories. Together Orexo and ProStrakan are establishing a sales operation, which will be owned equally. The new entity will have Nordic sales rights for both Orexo’s and ProStrakan’s portfolio which will include currently marketed and future products, Tostrex®, Rectogesic® and Droperidol®, followed by Rapinyl™, Orexo’s patented product for the treatment of cancer break through pain for which ProStrakan holds the European distribution rights, and ProStrakan’s product Sancuso® for the prevention of chemotherapy-induced nausea and vomiting, both currently undergoing the European regulatory process.
ProStrakan’s existing Swedish affiliate, ProStrakan AB, will be used as the joint venture company. Orexo is investing £1.3 million (SEK 17.9 million), through a directed share issue, to acquire 50% of it. The joint venture company will initially trade as ProStrakan AB from its offices located at Malmo, Sweden.
Orexo has grown over the past years by focusing on developing proprietary pharmaceuticals to address areas of unmet therapeutic need. This next phase in its development will enable Orexo’s products, at launch, to immediately benefit from an established sales force in the Nordic region.
Zsolt Lavotha, President and CEO of Orexo AB said: “We have, in a short time, built up a market driven pharmaceutical company with a balanced advanced stage product portfolio and a proven business model. This joint venture represents a critical next step which will enable us to operate as an integrated pharmaceutical company with a sales and marketing structure in the Nordic region. This joint venture will furthermore provide us with market presence from day one with the sales of Tostrex®, Rectogesic® and Droperidol®. At the same time we estimate that we through our network – and as a complement to Orexo’s and ProStrakan’s own products – will be able to generate more opportunities for new products through in-licensing and/or acquisitions”
Dr Wilson Totten, Chief Executive of ProStrakan, said: “The Nordic countries are very important to ProStrakan and teaming up with Orexo will considerably boost the ability of both companies to enhance our performance in this market and increase sales. Orexo is an ambitious, fast-growing and successful business and it makes for a complementary partner for ProStrakan in this venture.
“Today’s announcement effectively sees the further development of our distribution network in major European countries and ensures that our products are effectively marketed in a cash efficient manner to as broad an audience across Europe as possible.”
For further information, please contact:
Zsolt Lavotha, President & CEO
Tel: +46 (0)18 780 88 12
Claes Wenthzel, Executive Vice President & CFO
Tel: +46 (0)18 780 88 44