Orexo plans on acquiring PharmaKodex, a drug delivery company with expertise in the reformulation of small molecule prescription and consumer health medicines. The company reportedly has 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 in August either in new Orexo shares or cash at Orexo’s option. The transaction also provides for further payments based on the profits from licenses of existing PharmaKodex programs and technologies as well as certain milestones.
PharmaKodex says that it currently has sufficient cash to cover all its costs in 2009 and into 2010, by which time additional license income on certain of the acquired technologies is anticipated.
“Orexo has identified a number of both problematic and unmet medical needs for which a combination of Orexo and PharmaKodex technologies make a fast drug formulation possible,” remarks Torbjörn Bjerke, president and CEO of Orexo. “These include major new product opportunities for some of the world’s largest pharmaceutical and consumer health companies, providing excellent chances of enhancing Orexo’s profitability within 12 months and probably within 2009.”
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 combination of buprenorphine and naloxone for opioid-addiction therapy. PharmaKodex anticipates launch in 2010 or 2011.
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