BerGenBio

Legal Proceedings Report • Feb 28, 2019

BerGenBio ASA: Arbitration with Rigel Pharmaceuticals, Inc resolved

BerGenBio ASA: Arbitration with Rigel Pharmaceuticals, Inc resolved

Bergen, Norway, 28 February 2019 – Reference is made to the announcement released on September 13, 2018 where BerGenBio ASA (OSE:BGBIO) informed that it had served Notice of Arbitration to Rigel Pharmaceuticals, Inc. seeking to clarify the parties' rights and obligations under an agreement (the License Agreement) pursuant to which BerGenBio licensed certain specific AXL inhibitor compounds, including BGB 324, now known as BerGenBio’s lead asset bemcentinib. More specifically, BerGenBio sought declarations regarding the interpretation of certain key provisions of the License Agreement as they relate to Rigel's entitlement to receive compensation in the event of a sale of BerGenBio, its assets, or license of bemcentinib to a third party.

On February 27, 2019 a panel of three Arbitrators released a final and binding decision (the "Award"), awarding BerGenBio the declarations it sought with respect to the rights and obligations of the parties. The reasons for the decision are to remain confidential.

Based upon the Award, it is now clear that in the event of a third party acquiring BerGenBio through purchase of the Company’s shares in the market, Rigel would not be entitled to receive a share of the consideration received by the shareholders and the milestone and royalty payments to Rigel would continue.

In the event that BerGenBio were to sell its assets or sell shares to a third party resulting in the transfer of control of the business or operations, or in the event that BerGenBio were to license bemcentinib to a third party, Rigel may be entitled to a share of the consideration that is received by BerGenBio. In such case the share due to Rigel would be represented by that proportion of the consideration received that is attributable to the AXL Inhibitors licensed under the Agreement which share would be further reduced depending on the stage of development of the AXL Inhibitor Product.

In the case where Rigel is entitled to a revenue share under the Agreement, BerGenBio's obligation to pay milestones and royalties would cease.

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For further information, please contact:

Richard Godfrey CEO, BerGenBio ASA

ir@bergenbio.com

+47 917 86 304

Rune Skeie CFO, BerGenBio ASA

rune.skeie@bergenbio.com

+47 917 86 513

Forward looking statements

This announcement may contain forward-looking statements, which as such are not historical facts, but are based upon various assumptions, many of which are based, in turn, upon further assumptions. These assumptions are inherently subject to significant known and unknown risks, uncertainties and other important factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this announcement by such forward looking statements.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.