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Active Biotech Group Annual Accounts Report January - December 1999

2000-02-21

ACTIVE BIOTECH INVESTS IN NEW PHARMACEUTICALS AGAINST CANCER

Active Biotech acquires TTS

Active Biotech and Pharmacia & Upjohn, P&U, have signed a Letter of Intent concerning to the "TTS"; Tumor Targeted Superantigens research area. TTS is a cancer therapy where the body's own immune response is selectively directed towards the tumor.

Active Biotech will acquire from P&U all of the TTS patents and rights concerning the ongoing development of new candidate drugs within cancer, in the first instance, lung and kidney cancer. Active Biotech in Lund has so far managed the project according to a contract research agreement.

According to the agreement P&U will honour payments according to the original research agreement, which means that there is no increase on cash burn for year 2000. Active Biotech's payment for the TTS-project consists in that Active Biotech return the so called ß1 Integrin-project, concluded in the agreement from 1998, and that Active Biotech pay a royalty on future TTS-products. P&U maintain a sales option for the USA, Japan with market adjusted milestone and royalty payments to Active Biotech if the option is used.

Clinical trials against lung cancer

Ongoing clinical phase I/phase II studies, against lung cancer have during autumn 1999 demonstrated promising effects of TTS therapy. The same substance has the potential to be used in other types of cancer, such as kidney cancer. The product has been developed by the researchers at Active Biotech who have an extensive competence in the area of new effective cancer products based on TTS therapy.

New clinical trials in combination with interleukin-2 are planned to begin in the first half of 2001 and product launches against lung and kidney cancer are expected within 4-5 years.

TTS will increase the number of projects in clinical phase and the possibility of therapeutic vaccines

"Now that we have acquired the complete project and patent portfolio for TTS, we are in a better position to further develop the technology required for our own future products. We see this as a unique possibility to quickly develop new cancer products and apply the competence within TTS to our core competence, immunomodulation.

An additional highly attractive and expanding product area of interest is therapeutic vaccines", says Karl Olof Borg, Vice President of Active Biotech.

"The acquisition of the TTS products brings to our already balanced project portfolio more projects in the clinical phase", says Sven Andréasson, President & CEO of Active Biotech.

POLIO VACCINE SOLD TO NEW PARTNER

Negotiations are in progress with a new international partner for a long-term agreement on the bulk delivery of the injectable polio vaccine (IPV) from Active Biotech for use in combination vaccines. An agreement requires a registration in Europe and deliveries are expected to begin at the end of the year. The provision for the newly purchased polio plant in Solna is secured by using the capacity at a maximum

SAIK GOES INTO PHASE I CLINICAL TRIALS IN MS PATIENTS

During the autumn 1999, SAIK-MS, a substance intended for use in patients with multiple sclerosis, has been tested on healthy volunteers with very promising results.

The Swedish Medical Products Agency has now approved a more extensive Phase I study in more healthy volunteers and in MS patients. It is anticipated that SAIK-MS will enter phase II trials to study its clinical effect in Q4 2000, which is earlier than originally expected.

The current market for existing pharmaceuticals used in the treatment of MS is 5 billion SEK per year, which expected to grow by more than 50%. There are over 50,000 new patients every year, only a portion of which can be treated with existing therapies.

ETEC-VACCINE - FIRST DATA ON EFFICACY BY THE END OF THE QUARTER

The first data on efficacy from the phase III studies in Guatemala and Mexico are expected to be presented by the end of the quarter. Securing of all the data in a so-called Clean File is in progress.
Since November 1999, our collaboration partner SmithKline Beecham has been conducting the last part of phase III. In all, over 1,500 patients will have participated in the studies.

DUKORAL TRAVEL VACCINE, 70 % INCREASE IN SALES IN 1999, 100 % INCREASE IN JANUARY THIS YEAR

The strong sales of the Dukoral Travel Vaccine are continuing to increase, 70% increase compared to last year. So far the product is only sold in Sweden and Norway, however, registration applications have been submitted to Switzerland and Mexico and are being prepared for several other countries.
In January this year, sales in Sweden increased by 100% and in Norway by 280%.

NEW INTERNATIONAL ORDER FOR SBL CHOLERA VACCINE

The cholera epidemic on Madagascar is about to spread over the entire island and the authorities are taking steps to protect the population with vaccination.
A new part order for 250,000 doses has been received. The SBL Cholera Vaccine is recommended by the WHO as being the only cholera vaccine in the world with a documented protective effect.

RESULTS AND FINANCIAL POSITION

Turnover amounted to 267 million SEK (259 million SEK). Contract research for 75 million SEK (50 million SEK) is included in this figure. This year's net proceeds were -58 million SEK (-40 million SEK). A comparison between the final accounts for 1999 and 1998 is misleading as the acquisition of the research plant in Lund was consolidated within the group in April 1998.
Active Biotech's financial position is very strong, with available assets of 680 million SEK. Payment for the real estate in Solna gives a further 122 million SEK.

The solvency in the group was 74% and the total equity amounted to 1,064 million SEK, or 95 SEK per share

In the prospectus for the issue of new shares to shareholders and institutions in the spring 1998, a predicted deficit for the years 1998-2000 of -200 million SEK per year was forecast. The actual results for 1998 and 1999 were -40 million SEK and -58 million SEK, respectively.


ANNUAL GENERAL MEETING

The ordinary annual general meeting will take place on Wednesday the 12th of April at 5.00 pm at the Star Hotel in Lund

Lund 18th February 2000

Board of Directors
Active Biotech AB (publ)

The full report including tables is available to download from the enclosed link.

pdfActive Biotech Group Annual Accounts Report January - December 1999



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