Orexigen earns total $100 million milestone on Contrave

US biopharma company Orexigen Therapeutics (Nasdaq: OREX) says it has earned a $70 million milestone payment from partner Takeda Pharmaceuticals (TYO: 4502) related to the shipment of weight management drug Contrave (naltrexone HCI and bupropion HCI extended release) to pharmacy wholesalers in preparation for commercial launch.

The milestone is payable within 30 days of invoice. On October 7, Orexigen received $30 million from Takeda in milestone payments that were earned in September with the approval of Contrave by the US Food and Drug Administration and the delivery to Takeda of Contrave launch supplies. Orexigen expects to end 2014 with around $190 million in cash, cash equivalents and marketable securities.

"It's terrific to now enter the commercialization phase for Contrave and to begin earning substantial milestone and royalty payments," said Michael Narachi, chief executive of Orexigen. "We look forward to a well resourced launch by Takeda's cardiometabolic commercial team, which will deploy 900 sales representatives, a large managed care effort, and innovative programs designed to help appropriate patients access Contrave and support them in their efforts to achieve their weight loss goals," he added.