Bausch Health Companies Inc (BHC)

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Orexigen inks deal with Valeant for commercialization of Contrave in Canada; shares up 11% premarket


Aug 30 2016, 08:39 ET | About: Orexigen Therapeutics,... (OREX) | By: Douglas W. House, SA News Editor


Thinly traded nano cap Orexigen Therapeutics (NASDAQ:OREX) is ahead 11% premarket, albeit on only 11,300 shares, in response to its announcement that it has signed an agreement with Valeant Pharmaceuticals (NYSE:VRX) unit Valeant Canada for the commercialization of obesity med Contrave (naltrexone HCl) in Canada.

Under the terms of the deal, Valeant Canada will be responsible for securing Canadian regulatory approval and all commercialization activities and expenses. Orexigen will supply Contrave at a specific transfer price and will be eligible for certain regulatory- and sales-based milestone payments. Specific financial terms are not disclosed. The marketing application to Health Canada should be filed in January 2017.

In March, the companies inked a commercialization deal for Mysimba (naltrexone HCl/bupropion HCl prolonged release) covering 19 countries in Central and Eastern Europe. The product will be launched in 11 of the countries in Q4, followed by two additional countries in Q1 2017.