Orexo to acquire Biolipox

Swedish company Orexo and the principal owners of Biolipox have reached an agreement under which Orexo will acquire Biolipox, an innovative Swedish research-based pharmaceutical company that develops new therapies for inflammatory diseases.

The acquisition, which values Biolipox at SEK856m (Euro 93m), will create an innovative speciality pharma company with a broad product pipeline, global partnerships with major financial potential, and established sales channels. The new company will retain the Orexo name.

Together the two companies have approximately 120 employees, including nearly 90 engaged in drug development. The Orexo head office will remain in Uppsala, Sweden.

Dr Torbjoern Bjerke currently ceo of Biolipox, will serve as president and ceo of the new company. Claes Wenthzel will continue to serve as executive vice president and cfo, and Hakan ¦stroem will continue as chairman of the board. Orexo's current ceo, Zsolt Lavotha, will be leaving the company for personal reasons and will serve as senior advisor to Orexo's board.

Orexo's primary focus will be on development and commercialisation of products primarily in the areas of pain management and respiratory diseases, enabling Orexo to play a fully integrated role from research to commercialisation. Biolipox's pipeline includes several development projects in the areas of pain management and respiratory diseases. The combined company's product pipeline will consist of a number of priority projects, most of which are in late stage development, as well as a number of other projects which will be evaluated by company management.

"The combination of Orexo and Biolipox will create a larger and more robust pharmaceutical company with a broad and attractive product pipeline," said Hakan ¦stroem, chairman of the board of Orexo. "Orexo's business model, combined with the Biolipox innovative research pipeline is an exciting combination to create value."