LONDON, Sept. 13, 2018 (GLOBE NEWSWIRE) -- Orexo’s appeal of the US District Court’s invalidation of the ‘330 patent, which had been anticipated for some months, has been successful. Zubsolv is Orexo’s largest and fastest-growing product – we anticipate sales of c SEK620m and over 25% growth in FY18. The initial invalidity of the ‘330 patent had weighed on the shares since 2014 and this overhang has now been removed. The exclusivity of the Zubsolv patents runs until 2019 and 2032. We have updated our valuation ahead of the Q318 results.

Ahead of Orexo’s Q3 results, we have increased our valuation to SEK3.3bn or SEK94.5 per share (from SEK2.52bn or SEK72.0 per share previously) to include the expected cash generation in the quarter, foreign exchange rate changes and Zubsolv exclusivity until 2032. We have also absorbed Orexo’s historical SEK1.46bn tax-loss carry-forwards, which, based on our estimates, suggest Orexo’s tax rate will increase to 20.6% in 2025. We have also brought forward the gross margin improvements since the more expensively produced Zubsolv batches had been sold in the higher volumes of H1.

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