Orexigen receives $22M in milestone payments
Orexigen Therapeutics has received the first of three potential $15 million anniversary milestone payments from Takeda Pharmaceuticals, Orexigen's U.S. partner for Contrave (naltrexone HCl and bupropion HCl extended release). Two additional potential $15 million anniversary milestone payments are expected from Takeda in the fourth quarter of each of 2016 and 2017.
Orexigen also announced receipt of the $7 million upfront payment from Kwang Dong Pharmaceutical, based in Seoul, Korea. In August 2015, Orexigen and Kwang Dong executed a Korean distributorship agreement for Contrave. Kwang Dong expects to begin marketing Contrave in the second half of 2016, if regulatory approval is obtained.
"As we make progress in the global commercialization of Contrave/Mysimba, we expect a growing revenue stream of upfront and milestone payments as well as royalty and product sales income from currently established and potential future collaborations," said Mike Narachi, CEO of Orexigen.
Orexigen expects to end 2015 with approximately $190 to 200 million in cash and cash equivalents.