Orexo AB Focuses its Business and Reduces Costs; 35 Employees Laid Off
Published: Mar 06, 2012
Orexo AB is focusing its development activities to the three proprietary programs OX219, OX51 and OX27. The total requirement for resources will thereby be reduced with up to 35 full time employees.
The personnel reduction, which will have full effect in 2013, is expected to lower the costs by a total of SEK 30 million annually. Negotiations with trade union representatives will commence immediately. The reduction in personnel is expected to be completed during the second quarter of 2012.
"The focus of our business activities will now be fully in line with Orexo's strategy and we shall exclusively invest in further development and commercialization of our proprietary products. This means that we are directing all our resources towards our key later stage development programs," says CEO Anders Lundström.
The three programs, OX219, OX51 and OX27 are based on proprietary drug delivery technologies applied to well-known substances with licensed uses. This results in programs with significantly lower development risk, lower cost and shorter development time than traditional drug development programs. This approach was used to successfully develop Orexo's pain product Abstral® and the insomnia product Edluar™.
Orexo has today 110 employees, of which approximately 80 work in research and development.
Orexo develops and markets pharmaceuticals based on proprietary drug delivery technologies applied to well-known substances. The company's largest product is Abstral, a treatment of breakthrough cancer pain. Orexo’s shares are listed on the Stockholm Stock Exchange and Danish Novo A/S and Swedish HealthCap are the largest shareholders. More information can be found at www.orexo.com
Note: This is information that Orexo AB (publ) discloses pursuant to the Financial Instruments Trading Act and/or Securities Market Act. The information was provided for public release on March 6, 2012 at 11:00 CET. This press release has been prepared in both Swedish and English. In the event of any discrepancy in the content of the two versions, the Swedish version shall take precedence.
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Anders Lundström, CEO
Phone: +46 70-667 22 66