Active Biotech AB Year-end report January - December 2017

Fourth quarter in brief

• The primary clinical endpoint was not met in the Phase II study (ARPEGGIO) with laquinimod in PPMS
• Patent regarding tasquinimod for the treatment of acute leukemia granted in Europe
• The process to divest the company's property in Lund is ongoing
• On December 7, the company announced that funding for the next 12 month period was not guaranteed. See further below "Events after the end of the period" relating to a new share issue

Other significant events during the January-December period

• Patent regarding tasquinimod for the treatment of multiple myeloma (MM) granted in Europe
• FDA granted orphan drug status for tasquinimod for the treatment of MM.
• The primary clinical endpoint in the Phase III study of laquinimod in RRMS (CONCERTO) was not met. The secondary endpoints were met in line with previous studies
• Helén Tuvesson was appointed CEO of Active Biotech
• The first product patent in the SILC project was granted in the US
• The decision was taken to discontinue the company's laboratory animal facility in Lund
• The Phase II study of laquinimod in Huntington's disease (LEGATO-HD) is ongoing. Results are expected in the second half of 2018
• The ANYARA project is proceeding, with planned start of clinical studies in the second half of 2018
• Out-licensing activities are continuing for the tasquinimod, SILC and paquinimod projects

Events after the end of the period

• The Board of Directors proposes a new share issue of approximately MSEK 48, with pre-emptive rights for the shareholders. An extraordinary general meeting to be held on March 19, 2018
• In connection with the new share issue, the company has received a permanent waiver from its commitment to the bank that finances the company's property in Lund that the company's liquidity should never fall below MSEK 30
• The company again has funding for the coming 12 month period
• Patent application regarding tasquinimod for the treatment of MM allowed in the US
• Application for the second product patent in the SILC project allowed in the US

Financial summary

     *of which write down of property SEK 50 M

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The report is also available at www.activebiotech.com.