Orexo AB today announced that Novartis AG has sent a notice of termination of the license agreement dated August 27, 2009. The OX17 program was aimed for the treatment of gastroesophageal reflux disease (GERD) and is still in early clinical phase.
Under the license agreement, Novartis was responsible for all development, production and marketing of future products.
The OX17 program has not developed according to plans and given the strategic direction which Orexo has taken, the program will be discontinued. The termination of OX17 will have no impact on the financial position of Orexo from both a cost and revenue perspective.