• Orion Pharma acquires marketing rights for Germany, Switzerland, Nordic countries and Baltic States
• Market entries scheduled after regulatory approval in business year
• Sanochemia receives €1 m upfront payment

Vienna, 19 January 2007 - Sanochemia Pharmazeutika AG, Vienna, listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN AT0000776307) and Finnish pharmaceuticals company Orion Corporation have concluded an exclusive agreement for the marketing and sale of tolperisone in Germany, Switzerland, Nordic countries and the Baltic States. The agreement relates to a formulation of tolperisone for use in the treatment of muscle spasm associated with neurological conditions such as stroke and Multiple Sclerosis (MS).

Publicly-listed Orion Corporation, based in Espoo, Finland, is an innovative and research-orientated company engaged in pharmaceuticals and diagnostics with an actively expanding marketing network in Europe. The Hamburg-based subsidiary Orion Pharma GmbH is a sales-oriented company focusing on the areas of neurology. Marketing activities in Germany and Switzerland are planned to commence immediately after receipt of regulatory approvals in these markets. Tolperisone is currently at advanced regulatory stages in both countries.

Tolperisone is the active pharmaceutical ingredient (API) upon which a drug to treat neuromuscular spasms is based. Patient numbers in the world´s seven largest markets total around 30 million, representing a potential market volume of approximately USD 2.5bn per year. In other markets tolperisone has reached market shares of up to 30%, allowing estimates to be made that Sanochemia´s new presentation could generate annual sales of over USD 300m.

Details of the licensing agreement

This agreement awards Orion Corporation exclusive marketing and sales rights to tolperisone formulations (tablets) in Germany and Switzerland, Nordic countries and the Baltic States.

In return, Sanochemia is expected to receive a milestone package of up to four million euros of which one million euros are to be paid upon signing. Further milestone payments would fall due following the awarding of marketing authorisations in additional indications and for new product formulations. Moreover, Sanochemia will manufacture and supply Orion Corporation with the product for the duration of the agreement.

Chief Executive Officer at Sanochemia, Dr. Josef Böckmann: “We are delighted to have acquired in Orion an internationally recognised partner with outstanding levels of expertise and excellent market positions in the neurological and orthopaedic segments. Securing the right marketing and sales partner is key to success in these important European markets.”

The top-quality production of tolperisone under GMP conditions will generate regular and meaningful contributions to the Company’s sustainable growth and profitability in the years ahead.

Tolperisone
Tolperisone has been used in the treatment of neuromuscular spasms in Eastern European markets for many years. Muscular spasm is a term used to describe prolonged muscle cramps attributed to neurological disorders. Muscle spasm may result from congenital or acquired neurological conditions such as Multiple Sclerosis (MS) or following a stroke. Muscle relaxants such as tolperisone are used to treat both painful muscular tension and spasms.

Tolperisone is a centrally acting muscle relaxant with an excellent efficacy and safety profile. Contrary to other muscle relaxants, tolperisone´s muscle relaxant effects are not accompanied by side effects such as sedation, coordination problems, weakness, states of confusion and withdrawal symptoms.

Sanochemia filed registration dossiers for its instant release formulation in Germany and Switzerland in December 2004 and May 2005, respectively.


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About Sanochemia
Sanochemia Pharmazeutika AG is a specialty pharmaceutical company with outstanding development skills and its own API production facilities. The company has elected to focus on the areas of the central nervous system, pain, oncology and clinical diagnostics – indication areas with high therapeutic demands and urgent medical need for new and innovative drugs as the means to improving patient quality of life.
In its manufacturing activities, Sanochemia concentrates on the development of complex synthetic APIs. Sanochemia is the exclusive supplier to Janssen-Cilag of synthetic galantamine – a substance used in the treatment of Alzheimer´s disease. A liposomal form of galantamine is currently in clinical trials for the indication neuropathic pain. To learn more about Sanochemia please visit the company´s website at www.sanochemia.at.

About Orion
Orion Corporation (OMX: ORNAV, ORNBV) is one of the leading pharmaceutical companies in the northern Europe. Orion develops, manufactures and markets pharmaceuticals, active pharmaceutical ingredients and diagnostic tests for global markets. Pharmaceuticals generate about 95% of the Group´s net sales, of which proprietary patented pharmaceutical innovations contribute a considerable part. Stalevo® and Comtess® / Comtan®, for Parkinson´s disease, are the largest products by sales in Orion´s portfolio. They are based on Orion´s own molecule discovery, entacapone. The core therapy areas in Orion´s product and research strategy are central nervous system disorders, cardiology and critical care and hormonal and urological therapies.
For further information please consult www.orion.fi.

For further information please contact:
Margarita Hoch,
Investor Relations
Tel.: +43 / 1 / 3191456 / 335
Fax: +43 / 1 / 3191456/ 344
m.hoch(at)sanochemia.at