The negotiations under the Act on Co-operation within Undertakings concerning Orion’s R&D have been completed – future focus on pain and oncology

ORION CORPORATION                 
PRESS RELEASE                 
9 May 2022 at 10.00 EEST

The negotiations under the Act on Co-operation within Undertakings concerning Orion’s R&D have been completed – future focus on pain and oncology

Orion announced on 24 March 2022 that it is planning to refocus the strategy of its R&D function. In the future, Orion will invest in the research and development of new proprietary drugs in two therapy areas: cancer diseases and pain. The negotiations under the Act on Co-operation within Undertakings in Finland related to the changes have been completed. As a result, 32 people will be made redundant, six of whom will be offered positions elsewhere in the Orion Group.

The company believes that by focusing its resources, it will be able to develop new treatments for patients’ needs and generate the most effective return on its R&D efforts. This will also be the most effective way to support Orion’s growth strategy.

The negotiations under the Act on Co-operation within Undertakings, which concerned in total 430 salaried employees and senior salaried employees in Orion’s R&D function in Finland, have been completed. The negotiations concerned personnel in the research areas in which the plan is to discontinue investment as a result of the refocusing, i.e., in neurodegenerative and rare diseases. Orion has also decided to terminate the ongoing development of the indacaterol-glycopyrronium combined formulation for the treatment of chronic obstructive pulmonary disease (COPD). Orion is currently developing a new inhaled pulmonary drug (a tiotropium formulation for the treatment of COPD) for the European market, and its bioequivalence study is underway. This study will be completed as planned.

Orion’s refocusing of its research and product development of new proprietary drugs will not affect the current portfolio of products that are on sale. The role of oncology as the new focus of research and product development is very important as a driver of growth for Orion.

The company will also continue to manufacture, sell and market inhaled pulmonary drugs, which is an important product group for the company, and it intends to continue to invest in its pulmonary drugs that are already on the market.

Sales and marketing of the existing products in the neurological disease range will also be continued as before. Research on pain management and the market for painkillers are attractive prospects for Orion. On May 6, 2022 Orion announced that it is entering into an agreement with Chinese Jemincare for the development and commercialisation of a potent and selective NaV 1.8 blocker for the treatment of acute and chronic pain.

As a result of the negotiations, 32 people will be made redundant, six of whom will be offered positions elsewhere in the Orion Group. The intention is to implement the redundancies during 2022, mainly by summer. In addition to the redundancies, personnel will be transferred to positions elsewhere in the R&D function or to other positions in the Orion Group as a result of the reorganisation of operations.

Orion issued its negotiation proposal, as laid down in the Finnish Act on Co-operation within Undertakings, on the reorganisation of operations and possible personnel reductions on 24 March 2022. The negotiations were then anticipated to result in personnel reductions of a maximum of 37 persons.

Further information:

Terhi Ormio
Vice President, Communications, Orion Corporation
Tel. +358 50 966 4646          
terhi.ormio@orion.fi

Publisher:
Orion Corporation
Communications
Orionintie 1A, FI-02200 Espoo, Finland
Homepage: www.orion.fi

Orion is a globally operating Finnish pharmaceutical company – a builder of well-being. Orion develops, manufactures and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients. The company is continuously developing new drugs and treatment methods. The core therapy areas of Orion’s pharmaceutical R&D are currently neurological disorders, oncology and respiratory diseases for which Orion develops inhaled pulmonary medication. Orion’s net sales in 2021 amounted to EUR 1,041 million and the company had about 3,350 employees at the end of the year. Orion’s A and B shares are listed on Nasdaq Helsinki.