Takeda enters partnership over Contrave

Takeda Pharmaceuticals and Orexigen Therapeutics have entered into a partnership to commercialise investigational obesity drug Contrave (naltrexone SR/bupropion SR) in North America.

Under the agreement, Japan-based Takeda will pay Orexigen an upfront cash payment of $50m with Takeda obtaining exclusive marketing rights for the drug in the US, Mexico and Canada. Orexigen, a biopharmaceutical company focused on the treatment of obesity, will retain co-promotion rights with Takeda in the US.

Further regulatory and sales-based milestones of over $1bn are also available to Orexigen if achieved. Takeda will pay tiered double-digit royalty payments on net sales if Contrave is commercialised in North America.

Both companies will work together on ongoing development of the product, with future development costs to be shared.

"We believe this is a great strategic partnership to enable our goal of a strong market entry for Contrave, if approved," said Michael Narachi, president and CEO of Orexigen.

"It has been our belief that getting a partner involved early would be critical to a high-quality launch of Contrave, and with this partnership now in place, we are tightly focused on the regulatory review process and securing approval for Contrave," Narachi said.

Contrave is developed as a combination therapy to treat both biological and behavioural issues with obesity.

A New Drug Application (NDA) was submitted by Orexigen to the US Food and Drug Administration (FDA) in March 2010.