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Orexigen Therapeutics, Takeda Pharma Team Up To Commercialize Contrave In North America

(RTTNews) - Orexigen Therapeutics Inc. (OREX) and Takeda Pharmaceutical Company Limited announced that they have entered into an exclusive partnership to develop and commercialize Contrave, Orexigen's investigational drug for the treatment of obesity, in the United States, Canada and Mexico.

As per the deal terms, Orexigen said it would receive an upfront cash payment of $50 million from Takeda, and Takeda would obtain an exclusive marketing right from Orexigen in the United States, Mexico and Canada while Orexigen retains the right to co-promote with Takeda in the United States.

Orexigen added that it would be eligible to receive payments of more than $1 billion upon achieving certain regulatory and sales-based milestones. Assuming Contrave is commercialized, Takeda would pay tiered double-digit royalty payments on net sales in the Territory.

Under the terms of the agreement, Orexigen and Takeda would work together on ongoing development of the product, with Orexigen leading pre-approval activities, and Takeda leading post-approval activities.