Novartis, Orexo Sign Development Pact

Orexo has signed an exclusive worldwide licensing agreement with a Novartis affiliate to develop and commercialize a new product related to Orexo’s OX17 program. OX17, a combination of an H2-receptor blocker and a proton-pump inhibitor, is being studied for gastroesophageal reflux disease (GERD).

Novartis will fund future development of the new product and will receive an exclusive license to all related intellectual property. Orexo will receive development milestone payments and will be eligible for sales milestones. Orexo will also receive royalties on future sales of the product. The financial terms were not disclosed.

Torbjörn Bjerke, president and chief executive officer of Orexo, commented, “Our development collaboration with Novartis, one of the finest healthcare companies in the world, has been outstanding and I am now very pleased to extend this to a full licensing agreement for the new product. This agreement is potentially an important step towards Orexo becoming a sustainable profitable pharmaceutical company. We are convinced that Novartis will make the new product a success.”

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