Orexigen, Takeda in $1-billion deal for obesity drug
03 Sep 2010
US biopharmaceutical company Orexigen Therapeutics Inc (Orexigen) has entered into an exclusive deal with Japan's largest drug maker Takeda Pharmaceutical Company Limited (Takeda) yesterday to develop and commercialise Orexigen's experimental obesity drug 'Contrave' in North America, the company said in a statement.
Under the terms, Takeda will pay $50 million upfront to Orexigen and obtain exclusive marketing licence for Contrave in the US, Canada and Mexico, while Orexigen will retain the right to co-promote the drug with Takeda in the US.
Further, Orexigen will be entitled to receive payments of over $1 billion upon achieving certain regulatory and sales-based milestones, supplemented by royalty payments on the drug's commercialisation in the territory.
Takeda's wholly-owned subsidiary, Takeda Pharmaceuticals North America Inc will be responsible for the commercialisation of the drug in North America.
California-based Orexigen is focused on the treatment of obesity. Its lead investigation drug Contrave completed phase 3 clinical trials, and has been submitted for US Food and Drug Administration (FDA) review, while another drug Empatic has completed phase 2 clinical development.
Both the partners will work together on ongoing development of the product, with Orexigen leading pre-approval activities, and Takeda leading post-approval activities. The parties will also share the costs of any future development of the product.
Orexigen's president and CEO Michael Narachi said, "Takeda is an ideal partner for Contrave given its proven track record in commercializing innovative medicines and its commitment to the treatment of obesity.''
