Redeye Update: Orexo: Important announcements coming

Note, this is a translation of the original report, released the 13th of May (http://goo. gl/874Uz2) A couple of significant news is expected in the next few weeks that will have a considerable impact on the share. 1) outcome in the patent dispute concerning Suboxone Film (Indivior) and generic pharmaceutical companies, 2) information regarding a higher patient limit in the US, 3) an agreement on the Zubsolv ex US rights. Primarily point 1) is what is behind the recent weakness of the share, as investors await the outcome.

Our forecasts have been adjusted downwards somewhat after the first quarter interim report. The reason for this is exchange rate fluctuations (SEK/USD), but also the down-wards adjustment of forecast market growth this year for buprenorphine-based pharmaceuticals in the US. The fair value estimate in the base scenario is also reduced to SEK 84 (86) per share.

We expect the share price to continue to be restrained until the announcement on point 1) is in place and until then positive news will have difficulty to have a full impact on the share.