KENILWORTH (NJ) (dpa-AFX) - Orion shares were gaining around 8 percent in
Finland after the Finnish pharmaceutical company upgraded its fiscal 2024
outlook following a deal with U.S. Drug major Merck & Co., Inc. (MRK) regarding
opevesostat (MK-5684/ODM-208).

The mutual exercise of an option to convert the companies' ongoing
co-development and co-commercialization agreement provides Merck global
exclusive rights to Opevesostat, an investigational CYP11A1 Inhibitor, for the
treatment of metastatic castration-resistant prostate cancer.

Orion and Merck announced that notice has been provided of the mutual exercise
of an option for opevesostat and other candidates targeting CYP11A1 into an
exclusive global license for Merck.

Due to the decision, Orion said it will release the 60 million euros item
reserved to cover its share of accrued R&D costs related to the co-development
from the balance sheet, which will now have a positive impact on both
third-quarter net sales and operating profit.

Orion also said all of its businesses have developed positively during the first
half of the year.

For the full year, the company now expects net sales to be 1.44 billion euros to
EUR 1.48 billion euros, higher than previous estimate of 1.34 billion euros to
1.41 billion euros.

Operating profit is now estimated to be 350 million euros to 380 million euros,
compared to previously expected 280 million euros to 310 million euros.

As announced under the companies' original co-development and
co-commercialization agreement, each party was granted an option to convert the
co-exclusive license into an exclusive global license for Merck.

With the exercise of the option, Merck will gain global exclusive rights to
develop and commercialize opevesostat and other candidates targeting CYP11A1
covered by the agreement.

Under the deal terms, Orion is now eligible to receive development milestone
payments up to $30 million, regulatory milestone payments up to $625 million and
sales-based milestone payments up to $975 million as well as annually tiered
royalty payments ranging from a low double-digit rate up to a rate in the low
twenties on net sales for any commercialized licensed product.

The company noted that annual sales exceeding several billion US dollars would
be required to reach the total amount of the sales milestones and higher end of
the royalty rate. In addition, as a result of the exercise of the option, Merck
will now assume full responsibility for all past and future development and
commercialization expenses associated with the candidates covered by the
agreement.

Orion will retain responsibility for the manufacture of clinical and commercial
supply for Merck. No payment is associated with the exercise of the option.

The exclusive global license is subject to approval under the Hart-Scott-Rodino
Antitrust Improvements Act and other customary conditions, and is expected to
become effective in the third quarter of 2024.

In Finland, Orion shares were trading at 43.05 euros, up 8%.

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