2006 NOV 20 - (NewsRx.com) -- Orexo has initiated a collaboration with the medical technology company Doxa. The initial and primary objective is to develop a new, improved pharmaceutical product for pain treatment.

Orexo and Doxa are to develop new, innovative pharmaceuticals based on a unique drug delivery technology, which will be designed for slow and controlled release of the active ingredient.

"A technology that enables slow and controlled release of potent active ingredients, will open up for unique pharmaceuticals with significant medical and commercial potential", says Zsolt Lavotha, president and CEO Orexo AB. "There is an increasing demand for new, potent drugs for pain treatment. Furthermore, we see the additional and significant opportunities were we can apply this technology on other product candidates where a slow and controlled release of the active compound is desired".

"The combination of Orexo's and Doxa's expertise in formulation technologies respectively Doxa's expertise in bioactive-ceramics, will enable new, innovative administration forms, where the active ingredient is released from a ceramic material. We assess this to be a great potential for Doxa, especially within orthopedics", says Peter Bramberg, CEO Doxa AB.

Orexo will own the product rights for all pharmaceutical and medical applications, while Doxa will have exclusive rights within orthopedic and odontologic applications.

The product intellectual property will be developed in collaboration between Orexo and Doxa and will be owned by Orexo. Orexo will make a milestone payment in the amount of MSEK 4,0 to Doxa, at the time the first patent is approved. Orexo will make a further milestone payments in the amount of MSEK 10,0 for each resulting new pharmaceutical product upon the grant of a market authorization in the first of Japan, U.S. or any European market. Furthermore, each party will receive a royalty on the other party's product sales and licensing revenues.