Orexo and ProStrakan reconfigure rights to Abstral

Sweden’s Orexo AB (STO: ORX) and Scotland-based ProStrakan, a subsidiary of Japanese drugmaker Kyowa Hakko Kirin (TYO: 4151) have reconfigured the commercial rights to the product, Abstral, in various territories worldwide.

Abstral is the novel, rapidly-disintegrating, sublingual formulation of fentanyl, a well-established opioid used for the management of episodes of breakthrough pain experienced by cancer patients who are already receiving opioid analgesics for chronic pain. ProStrakan will gain the rights to Abstral for Europe and will also acquire Orexo’s interests in the companies’ joint venture business covering the Nordic region (Sweden, Norway, Finland & Denmark).

For its part, Orexo will acquire all rights to Abstral in the USA as from December 31, 2012. ProStrakan will pay to Orexo a total net cash consideration of £55.0 million ($84.3 million), of which £22.5 million will be paid in 2012, £20.0 million in 2013 and £12.5 million in 2014. ProStrakan will make double digit royalty payments to Orexo once annual sales of Abstral exceed certain levels in European Union. In addition, Orexo is entitled to further milestone payments when EU annual sales reach certain levels. The agreement for the EU is valid until the end of 2019.