ProStrakan and Orexo form joint venture to expand access to Nordic region

ProStrakan has signed an agreement with Swedish pharmaceutical group Orexo to gain access to the Nordic region, paying GBP 3.1m (USD 6.3m) to acquire a 50 per cent stake in a joint venture distribution company.

Scotland-based ProStrakan's products include Tostran gel for testosterone deficiency hypogonadism and Rectogesic for chronic anal fissures. To date, only Tostran and Droperidol for post-surgery nausea and vomiting have been launched in Sweden.

ProStrakan's portfolio also includes cancer pain drug Rapinyl and the Sancuso patch for chemotherapy-induced nausea. Both treatments are waiting for approval by EU regulators.

Per the jv agreement, ProStrakan's existing Swedish subsidiary will be the headquarters for the new company and will distribute the products of both firms in Norway, Sweden, Finland, Denmark and Iceland.

Prostrakan's CEO, Dr Wilson Totten, said: "The Nordic countries are very important to ProStrakan, and teaming up with Orexo will considerably boost the ability of both companies to enhance our performance in this market and increase sales."

Piper Jaffray analysts say that the agreement will allow ProStrakan to strengthen the reach of its EU sales and distribution capability at low initial costs.