Zubsolv market share boosts Orexo valuation, according to Edison research

Swedish drug developer Orexo (STO: ORX) has laid the foundations to accelerate growth of its Zubsolv (buprenorphine and naloxone) product, according to research from investment intelligence firm Edison Equity Research.

Zubsolv has started 2015 well, approaching around a 6% market share by volume of the US opioid dependency market in January. This marks a substantial increase on 2014 when it had just a 1% market share at the beginning of 2014. Orexo used 2014 to lay the groundwork for growth using exclusive contracts that have given it a foothold in the market.

The company’s priority for 2015 is to increase growth in the non-exclusive segment, which can be driven by physician and patient experience, clinical data, a wider product offering with new doses and potential induction label expansion in the third quarter. Orexo filed a supplemental New Drug Application to the US Food and Drug Administration in October following data from study 007 (Induction study) to expand the Zubsolv label to include induction therapy for opioid dependence, as well as the currently approved maintenance therapy. This should cumulatively lead to lower rebating and an improved gross margin with changing payer mix.