Orexigen Therapeutics, Inc., a biopharmaceutical company focused on the treatment of obesity, has entered into an asset purchase agreement with Nalpropion Pharmaceuticals, Inc. to sell substantially all of the assets of the company, subject to court approval.
Under the terms of the agreement, Orexigen will sell the world-wide rights to Contrave (naltrexone HCl/bupropion HCl extended release) /Mysimba (naltrexone HCl and bupropion HCl prolonged release) and certain other Orexigen assets for $75 million in cash. The deal is subject to higher and better offers.
Nalpropion Pharmaceuticals is a newly formed special purpose entity capitalized by an investor group that includes Pernix Therapeutics Holdings, Inc., a specialty pharmaceutical company.
"We are encouraged that our work has culminated in this agreement to acquire Orexigen's global rights to Contrave/Mysimba," said Michael Narachi, president and CEO of Orexigen. "Our goal is to ensure Contrave/Mysimba will continue to be available world-wide to help improve the health and lives of patients struggling to lose weight. Through our interactions with the investor group and Pernix, we have seen that they recognize the value and the growth trajectory that Orexigen has created for Contrave and that we have a shared commitment to serve this patient population. Orexigen will continue to work with other prospective bidders and will accept offers through June 21 with a goal to complete a successful strategic acquisition of Orexigen in mid-July."
Since its launch in 2014, Contrave has grown to be the No. 1 prescribed weight loss brand in the US with over 2.5 million prescriptions and over 100,000 unique prescribers since the US launch.
Contrave, marketed as Mysimba in the European Union, is a prescription-only, FDA-approved weight-loss medication believed to work on two areas of the brain—the hunger center and the reward system—to reduce hunger and help control cravings. The exact neurochemical effects of Contrave/Mysimba leading to weight loss are not fully understood. Contrave/Mysimba contains two medicines, bupropion, a relatively weak inhibitor of the neuronal reuptake of dopamine and norepinephrine and naltrexone, an opioid antagonist.
Contrave, approved by the FDA in September 2014, is indicated for use as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kg/m2 or greater (obese), or 27 kg/m2 or greater (overweight) in the presence of at least one weight-related comorbid condition (e.g., hypertension, type 2 diabetes mellitus or dyslipidemia). In the European Union, Mysimba was approved in March 2015.