Orexigen Therapeutics Inc. announced it has earned a $70 million milestone payment from partner Takeda Pharmaceuticals related to the shipment of Contrave to pharmacy wholesalers in preparation for commercial launch.
The milestone is payable within 30 days of invoice. On October 7, Orexigen (Nasdaq:OREX) received from Takeda $30 million in milestone payments that were earned in September with the approval of Contrave by the U.S. Food and Drug Administration and the delivery to Takeda of Contrave launch supplies. Orexigen expects to end 2014 with approximately $190 million in cash, cash equivalents and marketable securities.
"It's terrific to now enter the commercialization phase for Contrave and to begin earning substantial milestone and royalty payments," said Michael Narachi, CEO of Orexigen. "We look forward to a well resourced launch by Takeda's cardiometabolic commercial team, which will deploy 900 sales representatives, a large managed care effort, and innovative programs designed to help appropriate patients access Contrave and support them in their efforts to achieve their weight loss goals.”