Orexo is granted a Veterans Affairs Federal Supply Schedule contract for deprexis® in the US and will be reimbursed and made available by the federal government for use within the Veterans Affairs Health System, Indian Health Service and Department of Defence effective late July 2022
This long-term contract provides product access to close to 15 million US citizens who receive healthcare through the federal government
Deprexis® will be made available to patients as Orexo secures access through healthcare providers with an expected start late Q4 2022
UPPSALA, Sweden, July 13, 2022 /PRNewswire/ — Orexo AB (publ.), (STO: ORX) (OTCQX: ORXOY), announced today it has been granted a Veteran Affairs Federal Supply Schedule (VA FFS) contract for deprexis®, an evidence-based digital therapy for the treatment of symptoms of depression. As of late July 2022, deprexis® will be reimbursed by the federal government and made available to federal healthcare providers, including Veterans Affairs (VA), Indian Health Service (IHS) and Department of Defense (DOD). The contract will expire in 2032.
To make the product available for patients, Orexo will now initiate work with VA administrators on the logistics for distribution and education in each of the 18 Veterans Integrated Services Networks within the VA, as well as providers within the IHS and the DOD. To ensure an optimal implementation, Orexo will work with selected networks and providers during 2022 and the first half of 2023, before initiating a broader implementation.
The initial commercialization will be managed within the existing OPEX guidance, but expenses will grow with confirmed revenue opportunities in the years to come. The first patients receiving deprexis® are anticipated late 2022 with a significant increase in patients receiving deprexis® expected during 2023 as commercialization broadens to more parts of Veterans Affairs, IHS, and DOD
Nikolaj Sorensen, CEO & President of Orexo AB, said:»The agreement with the Veterans Affairs Federal Supply Schedule, is a milestone in the commercialization of deprexis® and our digital therapies, as it is the first payer providing nationwide reimbursement for deprexis®. With a 10-year contract we look forward to a long collaboration to integrate deprexis® into their treatment programs and ensuring veterans and their family members suffering from depression can get fast and efficient access to a scientifically proven digital therapy. We also look forward to a continued dialog with the Veterans Affairs about opportunities for our other digital therapies, vorvida® and MODIA™, to be added to the VA FFS.»
The federal government is one of the largest payers and direct healthcare providers in the US, covering health care services to nearly 15 million US citizens including veterans and their families. The VA covers about 9 million Veterans through a network of nearly 1,300 healthcare facilities. The IHS covers nearly 3 million American Indians and Alaskan Natives through more than 100 healthcare facilities in 37 states. The DOD also covers nearly 3 million employees in the US and abroad.
In 2018, roughly one-third of all veterans receiving healthcare through the VA had at least one diagnosed mental health condition. The VA is currently projecting a 32 percent increase in delivery of outpatient mental health services over the next 10 years.[1] In addition, in 2019 there was a significant gap in mental health care for veterans with 53 percent of veterans with any mental illness reporting receiving no treatment.[2]
For more information, please contact:
Orexo AB (publ.)
About deprexis®
Deprexis® is a digital therapy for the treatment of symptoms of depression during a period of 12-weeks. The therapy is developed in consultation with psychologists, physicians and patients and is based on cognitive behavioural therapy techniques. Patients will have access to the therapy 24/7 and it can be used as a standalone treatment or alongside traditional pharmaceuticals. Deprexis® effectiveness in managing the symptoms of depression has been evaluated and published in 12 randomized clinical trials (RCTs) including more than 2,800 patients.
About Orexo
Orexo develops improved pharmaceuticals and digital therapies addressing unmet needs within the growing space of substance use disorders and mental health. The products are commercialized by Orexo in the US or via partners worldwide. The main market today is the American market for buprenorphine/naloxone products, where Orexo commercializes its lead product ZUBSOLV® for treatment of opioid use disorder. Total net sales for 2021 amounted to SEK 565 million and the number of employees was 121. Orexo is listed on the Nasdaq Stockholm Mid Cap (ORX) and is available as ADRs on OTCQX (ORXOY) in the US. The company is headquartered in Uppsala, Sweden, where research and development activities are performed.
For more information about Orexo please visit, www.orexo.com. You can also follow Orexo on Twitter, @orexoabpubl, LinkedIn and YouTube.
This information is information that Orexo AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8.00 am CET on July 13, 2022.
[1]https://www.samhsa.gov/data/sites/default/files/reports/rpt31103/2019NSDUH-Veteran/Veterans%202019%20NSDUH.pdf
[2] See reference 1 above
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