Orion is entering into partnership with Endo Pharmaceuticals to conduct research into new cancer treatments.
The novel research and development collaboration will pertain to the discovery and commercialisation of eight oncology candidate drugs, with the two firms set to share all associated costs.
Endo will hold the rights to sell the treatments in the US while Orion handles European distribution, with royalties being paid by both companies based on sales performance in their respective territories.
Concurrent to this agreement, Endo has also exercised its option to license the collaboration's lead asset - a treatment for prostate cancer - from Orion, with phase I testing set to begin soon.
Dr Reijo Salonen, senior vice-president of Orion's research and development unit, said: "The agreement is also perfectly in line with Orion's research and development strategy to focus on risk-sharing partnerships."
According to Orion's latest financial report in October 2010, the firm's sales in the first nine months of last year increased by ten percent compared to 2009, with full-year financial data set to be published next month.