Orexo gets $8.6 million milestone in Boehringer Ingelheim collaboration

Sweden’s Orexo AB (STO: ORX) says that independent German drugmaker Boehringer Ingelheim has selected a development candidate resulting from the worldwide exclusive research, development and commercialization agreement it signed in November 2005 with Biolipox, a Swedish research-based pharmaceutical company acquired by Orexo in October 2007, triggering a milestone payment of 6.5 million euros ($8.6 million) to Orexo.

The aim of the collaboration is to develop a new class of medication with a novel mechanism of action for the treatment of pain and inflammatory diseases. The terms of the accord foresee further potential milestone and royalty payments. Boehringer Ingelheim is responsible for all further compound development and marketing.

In the Nordic and Baltic countries Orexo has the option to co-promote the products arising from this collaboration. The co-promotion option would enable Orexo to build up its own commercialization capabilities within the field of inflammatory pain.