Orexigen to pick up $210 bill for new outcomes study on Contrave

Last week, Orexigen Therapeutics (Nasdaq: OREX) said that it has entered into an amended and restated collaboration agreement with partner Takeda Pharmaceutical (TYO: 4502) realigning the partnership for its weight loss medication Contrave (naltrexone HCl / bupropion HCl extended release) tablets in the USA. Takeda returned rights to Canada and Mexico. Moreover, the companies resolved all outstanding disputes. Orexigen’s shares closed down 10.79% at $3.72 on Friday.

Under the amended terms, according to a Zacks Equity Research analysts’ blog, Orexigen has agreed pay up to $210 million for a new Food and Drug Administration-mandated cardiovascular outcomes study. Any cost in excess of this will be split equally by the partners. Takeda will pay the costs for closing down the LIGHT study. Moreover, Takeda – Japan’s largest drugmaker - will bear 75% of the cost of all other development activities for Contrave in the USA, including other post-marketing requirements as well as future life cycle management programs.

Now eligible for additional milestones of $105 million