Both parties have thoroughly analyzed the conditions for a continued partnership and come to a decision that the rights to Deprexis will be returned to GAIA, states Orexo. The termination will result in an impairment of intangible assets impacting the income statement and equity position in Q4 2024. The value of Deprexis on the Group balance sheet at end of November is SEK 71 million, of which SEK 63 million is recorded in the parent company’s balance sheet. The Group’s financial outlook for 2024 is unchanged and the termination will not impact the guidance to reach a positive EBITDA, the company states. Deprexis will not be associated with any further expenses and the termination will have a positive impact on profitability in 2025.

We welcome the policy announcement from the Center for Medicare and Medicaid Services (CMS) in late October enabling reimbursement of digital health programs, but additional investments are needed in Deprexis to meet the requirements from CMS from both technical and regulatory perspectives.

“A prerequisite for Orexo to succeed with a sophisticated digital health product like Deprexis is a tight collaboration with healthcare providers and access to viable reimbursement routes, compensating for both the product and the healthcare provider’s time. We welcome the policy announcement from the Center for Medicare and Medicaid Services (CMS) in late October enabling reimbursement of digital health programs, but additional investments are needed in Deprexis to meet the requirements from CMS from both technical and regulatory perspectives. Orexo and GAIA agree that the market opportunity with Orexo’s organization doesn’t motivate such an investment for Deprexis,” says Nikolaj Sorensen, CEO and President of Orexo.