Press release

BioInvent Interim Report 1 January - 30 June 2012

• BI-204 (acute coronary syndrome) did not reach the primary endpoint in the phase IIa GLACIER study. A decision on the future of the program will be taken later this year.
• After concluding negotiations with the unions a decision has been taken to reduce the number of full-time employees to 68 from 89, reducing costs by SEK 15m on a full-year basis.
• Treatment with BI-505 (cancer) was concluded in the 11th dose cohort and optimal biological dose (OBD) defined. Enrolment of a new group of patients at OBD has been initiated.
• BioInvent started collaboration with Cancer Research Technology, a subsidiary of Cancer Research UK, to identify new targets for therapeutic antibodies in oncology.
• BioInvent and ThromboGenics regained rights to TB-403 (cancer) from Roche. A strategic review of the future potential of the program is underway.
• BioInvent and its partner ThromboGenics decided to stop all further development of TB-402 (thrombosis) after reporting data from a phase II study.
• Entered into collaboration with Servier on the development of an antibody based oncology treatment in January. The agreement is worth more than EUR 11 million upon launch of a product.
• A preferential rights issue of SEK 104.8 was concluded successfully in April.
• Net revenues for January – June 2012 amounted to SEK 21 million (116). Earnings for January – June 2012: SEK -129 million (28). Earnings per share SEK -1.84 (0.45).
• Current investments together with cash and bank balances as of 30 June 2012: SEK 186 million (254). Cash flow of current operations and investment activities for January – June 2012: SEK -84 million (19).

BioInvent is a research-based pharmaceutical company that focuses on developing therapeutic antibodies. The Company is currently running innovative drug projects primarily in the areas of cancer and acute coronary syndrome.

 
Comments by the CEO
The events during the period remind us of the risks associated with drug development. A broad clinical portfolio and strong commercial partners are not a guarantee of success. We are also reminded of the challenges associated with turning new medical concepts into pharmaceutical products. BioInvent has taken the strategic decision to expose itself to the commercial opportunities inherent with unique medical concepts.

The centre of our clinical portfolio is primarily in oncology. The BI-505 project for the treatment of multiple myeloma we have started enrolling patients in the phase I study at what is defined as the optimal biological dose (OBD) and the timing of the final results is mostly a function of the number of patients to be included at this dose level. Assuming the full enrolment allowed for by the treatment protocol results will be released in the fourth quarter.

BioInvent is recognised as an interesting collaboration partner by internationally renowned researchers, which is rewarding for us. The agreement which we entered in June with Cancer Research Technology (CRT), one of the UK’s leading research institutes in oncology, serves as a good example. The collaboration will initially focus on the role of tumour-associated macrophages in the progression of cancer, linking the antibody know-how of BioInvent to the macrophage expertise and patient access at CRT.

The mutually beneficial CRT collaboration illustrates well how BioInvent operates. The preclinical research in our proprietary portfolio is primarily focusing on haematological malignancies, which also is the focus of the CRT collaboration.

The projects run by partners under a license to our n-CoDeR library constitute an important complement to our proprietary portfolio. We expect some of these projects to enter clinical development within the next 12 to 18 months. Such progress would add milestone payments to our revenues and serve as a validation of our antibody technology platform.

Our reduced commitments in the clinical portfolio alongside with the redefined priorities for our organisation did result in the decision to reorganize and reduce the company’s headcount. On a full-year basis we expect this decision to reduce costs by around SEK 15m. This first step in trimming and prioritizing our resources may be followed by additional steps at a later date. During the period costs linked to the clinical programs were higher than what will be the case in the second half. We expect that our cash position will last for at least another twelve months.

The value of our technology platform has long been overshadowed by our clinical portfolio. As the business opportunities in this portfolio are postponed or lost, the importance of the opportunities of our platform will increase. In summary, the proprietary oncology projects, our partnered programs and our antibody technology platform are the cornerstones of our business model. In the strategic overview which has been launched we will also address the risk profile of our project pipeline.

Svein Mathisen

 
Contact
Any questions regarding this report will be answered by:
 
BioInvent International AB (publ.)
Svein Mathisen, President & CEO, tel.+46 (0)46 286 85 67, mobile +46 (0)708 97 82 13, or
Sten Westerberg, Vice President, Investor Relations, tel. +46 (0)46 286 85 52, mobile +46 (0)768 68 50 09, [email protected]

College Hill
Melanie Toyne Sewell, tel. +44 (0)20 7457 2020, [email protected]

The report is also available at www.bioinvent.com

 
Information disclosed in this press release is provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication at 8.30 a.m. CET, on 19 July, 2012.