Under the proposed terms, Orexo would pay 4 million USD in installments over several years. The settlement also includes a contingent payment provision, capped at five percent of net sales, provided the company meets specific performance thresholds during 2030 and 2031. The resolution would take the form of a non-prosecution agreement alongside a separate civil settlement, effectively closing the case that has shadowed the firm since 2020.
Orexo nears resolution of six-year DOJ investigation
After six years of federal scrutiny, Swedish pharmaceutical firm Orexo AB has reached a non-binding agreement in principle with the U.S. Department of Justice to settle a long-standing investigation. The deal, which avoids any admission of wrongdoing, marks a turning point for the Uppsala-based company as it seeks to move past years of legal uncertainty.
CEO Nikolaj Sørensen cited the mounting costs of continued litigation and the need to prioritize research and development as primary drivers for the agreement. While the company intends to recognize a 4 million USD provision to cover the liability, it also confirmed that two former employees have reached their own agreements with the DOJ. Orexo plans to pursue insurance coverage to address the settlement costs associated with those individuals. Final details remain pending until the agreement is fully executed.
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