Active Biotech

Quarterly Report • Apr 22, 2021

INTERIM REPORT Q1 2021 | ACTIVE BIOTECH AB

Q1 Q2 Q3 Q4 Q1

Financing completed and good progress in the projects

FIRST QUARTER IN BRIEF

• Agreement signed for manufacturing of a topical ophthalmic formulation and capsules of laquinimod for use in clinical studies
• Activities are ongoing according to plan in the naptumomab and tasquinimod projects

Corporate

• Rights issue prospectus published on January 5, 2021
• Rights issue oversubscribed by 175% and added 76.2 MSEK to liquidity before issue expenses

EVENTS AFTER THE END OF THE PERIOD

• Active Biotech and NeoTX announce FDA clearance of IND for phase II clinical trial of naptumomab

FINANCIAL SUMMARY

	Jan-Mar	Full-year
SEK M	2021	2020	2020
Net sales	-	0.5	6.7
Operating profit/loss	-9.7	-9.7	-32.3
Profit/loss after tax	-9.8	-10.1	-32.2
Earnings per share (SEK)	-0.05	-0.06	-0.19
Cash and cash equivalents (at close of period)	92.0	47.9	26.2

The report is also available at www.activebiotech.com

Active Biotech is obligated to make public the information contained in this report pursuant to the EU Market Abuse Regulation. This information was provided to the media, through the agency of the contact person set out above, for publication on April 22, 2021, at 08.30 a.m. CET.

Helén Tuvesson

CEO

Activities are proceeding in the laquinimod project to secure the start of clinical development during this year

COMMENTS FROM THE CEO

During the past year, we laid the foundation for a new direction of Active Biotech. For 2021, we have a comprehensive program for our projects in cancer and inflammation with several clinical milestones projected to be reached during the year. So far, we have had a good start, and the projects progressed well in the first quarter.

In January, we completed a share issue aiming to finance the development programs through 2022. The rights issue with pre-emptive rights for Active Biotech's shareholders was oversubscribed by 175%, and approximately SEK 76.2 million was added to the company's liquidity before the deduction of issue costs.

In the naptumomab project, we and our partner NeoTX recently received FDA clearance of the IND (Investigational New Drug Application) for a phase II clinical trial of naptumomab in combination with docetaxel in patients with lung cancer. The study, which will be conducted in the United States, is expected to enroll its first patient during the second half of this year. The approval is an important step for naptumomab in the broadening of the clinical development program.

In parallel, the safety evaluation in the combination with durvalumab is ongoing in the phase Ib/II study. In parallel, preparations are underway to initiate new studies in this combination, first and foremost, an expansion cohort at the maximum tolerable dose, but also further studies in selected cancer indications based on the outcome of the ongoing study. During the first half of this year, we expect the results from the expanded dose escalation, including pre-treatment with obinutuzumab, a B cell therapy to potentially eliminate anti-drug antibodies to naptumomab.

In the tasquinimod project, the phase Ib/IIa study of tasquinimod in multiple myeloma is ongoing according to plan, and we expect to receive the first results from the safety evaluation of tasquinimod in monotherapy during the second half of 2021. We are also making preparations for the next step of tasquinimod in multiple myeloma.

Activities are proceeding in the laquinimod project to secure the start of clinical development in the inflammatory eye disease uveitis during this year. We have signed agreements for the manufacture of study drug, both regarding the new eye drop formulation of laquinimod and capsules for oral dosing. The work is underway, and we expect to start the clinical development during the second half of this year.

We have an exciting year ahead of us, and I look forward to updating you as the activities advance in the projects.

Helén Tuvesson, CEO

PROJECTS

Active Biotech's project portfolio includes projects for the development of drugs for the treatment of cancer and inflammatory diseases.

Naptumomab estafenatox

Naptumomab estafenatox (naptumomab) is a tumor targeting immunotherapy that enhances the ability of the immune system to recognize and kill the tumor. Since October 2016, Active Biotech has a licensing agreement with NeoTX Therapeutics Ltd (NeoTX) for the worldwide development and commercialization of naptumomab for cancer therapy.

Naptumomab increases the immune system's ability to recognize and attack the tumor, and preclinical data from various experimental models show synergistic anti-tumor effects and prolonged overall survival when naptumomab is combined with checkpoint inhibitors. Checkpoint inhibitors are a new group of cancer drugs, which function by unleashing the immune system to attack the tumor. Despite the successes of recent years with these immunotherapies, it remains a challenge for the immune system to recognize tumor cells, and there is a need to optimize the therapeutic effect of checkpoint inhibitors.

Previous clinical trials have found naptumomab to be well-tolerated and demonstrated preliminary signals of efficacy.

Ongoing clinical development of naptumomab

An open-label, multicenter, dose-finding clinical phase Ib/II study with naptumomab in combination with durvalumab, a checkpoint inhibitor, is ongoing. The clinical trial enrolls patients with previously treated advanced or metastatic, 5T4-positive solid tumors and aims to establish the maximum tolerated dose in the phase Ib study before advancing to phase II cohort expansion studies. The trial was initiated in H2-2019 and is performed under an agreement with AstraZeneca. More information about the study design is available at ClinicalTrials.gov (NCT03983954). Results from the phase Ib dose escalation part is expected early 2021. Phase II studies in combination with durvalumab in selected tumor indications, so called cold tumors, with poor response to checkpoint inhibition alone, and a phase II study in combination with docetaxel in non-small cell lung cancer, are expected to start in H2-2021.

EVENTS AFTER THE FIRST QUARTER

• Active Biotech and NeoTX announce FDA clearance of IND for phase II clinical trial of naptumomab

Tasquinimod

Tasquinimod is a once-daily, oral immunomodulatory compound that affects the tumor's ability to grow and spread.

Tasquinimod has been studied in both healthy subjects and cancer patients. Clinical effects and an overall good tolerability have been demonstrated in 1,500 patients, representing more than 650 patient-years of exposure to tasquinimod.

Today the development program for tasquinimod is directed towards hematological malignancies with a specific focus on treatment of multiple myeloma, a rare form of blood cancer with a high medical need. Tasquinimod's mode of action is novel and different to that of the four main classes of standard therapy used today in multiple myeloma. There is an urgent need of efficacious and safe combination regimens including drugs with novel mode of actions to mitigate drug resistance.

Preclinical data from experimental models of multiple myeloma demonstrating effect of tasquinimod as a monotherapy and in combination with standard multiple myeloma treatment were presented at the Virtual Edition of the 25th European Hematology Association Annual Congress Meeting (EHA), in June 2020.

Patents in key markets have been granted, including China, providing protection for the use of tasquinimod in multiple myeloma, until 2035. Furthermore, the US Food and Drug Administration (FDA) has granted orphan drug designation (ODD) for tasquinimod for the treatment of multiple myeloma, which provides for seven years of market exclusivity in the event of future registration.

Ongoing clinical development of tasquinimod

Based on the preclinical data and the previous clinical experience with tasquinimod, a clinical study was initiated, and the first patient was dosed in August 2020, ClinicalTrials.gov (NCT04405167). The study recruits relapsed refractory patients after at least one prior anti-myeloma therapy and is conducted in two parts: the first part (A) assessing monotherapy effect of tasquinimod, and the second part (B) a combination of tasquinimod and an oral standard anti-myeloma regimen (IRd; ixazomib, lenalidomide, dexamethasone). Primary endpoint in both parts is safety and tolerability, and key secondary endpoint is preliminary efficacy by overall response rate. The study is carried out in an academic partnership with Abramson Cancer Center in Philadelphia, PA, US, with Dr. Dan Vogl as principal investigator. The clinical study design with tasquinimod in multiple myeloma was presented at an oral poster session at the virtual ASH 2020 meeting.

The phase Ib/IIa study is ongoing according to plan, and Active Biotech currently expects the first safety readout in H2-2021. Following established safety, a maximum tolerated dose (MTD) expansion cohort will be started as well as the dose escalation of Part B, combination part of the study. The final readout of mono therapy tasquinimod is expected in H2-2022. Important corelative analysis of study bio-samples will be performed at the Wistar Institute in Philadelphia. These analyses aim at supporting further understanding of tasquinimod biological effects in the disease.

Laquinimod

Laquinimod in non-infectious non-anterior uveitis

Laquinimod is a first-in-class immunomodulator with a novel mode of action that distinguishes it from the uveitis treatments available today. It has been shown in experimental models of autoimmune/ inflammatory diseases that laquinimod targets the aryl hydrocarbon receptor (AhR) that is present in antigen presenting cells and involved in the regulation of these cells. By targeting the AhR, antigen presenting cells are re-programmed to become tolerogenic, meaning that instead of activating pro-inflammatory T cells, regulatory T cells with anti-inflammatory properties are activated leading to dampening of the inflammation in the eye.

Extensive data support that laquinimod is a potent inhibitor of uveitis in preclinical uveitis models. Some of these studies have been performed in collaboration with Dr. Rachel Caspi's team at the National Eye Institute (NEI) at The National Institutes of Health (NIH). Dr. Caspi and her team are world leading within this field, and last yeare they published an abstract in The Journal of Immunology in which they described a pronounced effect of orally administered laquinimod on the clinical manifestation of the disease in an experimental autoimmune uveitis model. Results from further preclinical studies show that experimental uveitis also can effectively be treated with laquinimod when given topically directly onto the eye.

Clinical development of laquinimod

Given that full regulatory documentation with comprehensive safety data from earlier clinical studies is available, the clinical program of laquinimod will be advanced directly to a clinical phase II proof-of-principle study of oral laquinimod in non-anterior non-infectious uveitis.

Furthermore, a topical ophthalmic formulation of laquinimod has been developed, and an agreement with a provider for manufacturing of this formulation for clinical use, has been signed.

Following preclinical tolerance testing, a clinical phase I safety study of the topical ophthalmic formulation will be conducted.

The clinical studies are planned to start during H2-2021. The results from the phase I study are estimated to be available during H2-2022. For the phase II proof-of-principle study, which the company intends to perform in an academic partnership, the read-out is estimated to 2023.

EVENTS DURING THE FIRST QUARTER

• Agreement signed for manufacturing of a topical ophthalmic formulation and capsules of laquinimod for use in clinical studies

FINANCIAL INFORMATION

Comments on the Group's results for the period January – March 2021

No sales were recorded during the first quarter 2021. The same period previous year included SEK 0.5 M related to real estate services.

The total operational costs for the period amounted to SEK 9.7 M (10.2) whereof research and development expenses totaled SEK 6.4 M (6.8), representing a 5-percent reduction.

The company's research efforts have been focused on complementing existing and new preclinical results for tasquinimod and laquinimod and establishing clinical partnerships for continued development of the programs.

• A phase Ib/IIa clinical study with tasquinimod for treatment of multiple myeloma was initiated in August, 2020 in collaboration with Penn University, USA. The study is progressing according to plan
• Laquinimod is being developed as a new product class for treatment of inflammatory eye diseases. A topical ophthalmic formulation has been developed. A phase I safety clinical study for topical treatment and a phase II clinical proof of principle study with oral laquinimod are in preparation for non-infectious non-anterior uveitis. The studies are scheduled to be initiated during 2H 2021
• Naptumomab partnered with NeoTX is in phase Ib/II development for solid tumors and progresses according to plan

Administrative expenses amounted to SEK 3.3 M (3.4).

The operating loss for the period amounted to SEK 9.7 M (loss: 9.7), the net financial income for the period amounted to SEK 0.0 M (expense: 0.4) and the loss after tax to SEK 9.8 M (loss: 10.1).

Cash flow, liquidity and financial position, Group, for the period January – March, 2021

Cash and cash equivalents at the end of the period amounted to SEK 92.0 M, compared with SEK 26.2 M at the end of 2020. Cash flow for the period amounted to a positive SEK 65.8 M (negative: 11.8). The cash flow from operating activities amounted to a negative SEK 8.0 M (neg: 11.5). Cash flow from investments amounted to SEK 0 M (0) and cash flow from financing activities amounted to a positive SEK 73.8 M (negative: 0.3) following the rights issue concluded in the period. The share issue added SEK 74.1 M to liquidity after issue costs.

Investments

Investments in tangible fixed assets amounted to SEK 0.0 M (0.0).

Comments on the Parent Company's results and financial position for the period January – March, 2021

Net sales for the period amounted to SEK 0 M (0.5) and operating expenses to SEK 9.7 M (10.2). The Parent Company's operating loss for the period was SEK 9.7 M (loss: 9.7). Net financial income amounted to SEK 0.0 M (negative 0.4) and the loss after financial items was SEK 9.8 M (loss: 10.1). Cash and cash equivalents including short-term investments totaled SEK 91.8 M at the end of the period, compared with SEK 26.1 M on January 1, 2021.

Shareholders' equity

Consolidated shareholders' equity at the end of the period amounted to SEK 86.5 M, compared with SEK 22.1 M at year-end 2020.

The number of shares outstanding at the end of the period totaled 217,971,720. At the end of the period, the equity/assets ratio for the Group was 89.0 percent, compared with 68.8 percent at year-end 2020. The corresponding figures for the Parent Company, Active Biotech AB, were 48.0 percent and 1.2 percent, respectively.

Long Term Incentive Programs

The Annual General Meeting on May 19, 2020 resolved to adopt two Long Term Incentive Programs (LTIPs), Plan 2020/2024 to include the employees within the Active Biotech Group and the Board Plan 2020/2023 to include all Board members of Active Biotech.

Employees and Board members acquired in total 361,756 shares (Saving shares) in the market during the applicable time period in the respective incentive programs. Total costs, including social contributions, as of March 31, 2021 YTD, amounted to SEK 726 K, whereof SEK 13 K refers to the period January – March, 2021.

Detailed terms and conditions for each of the programs are available on the company homepage.

Organization

The average number of employees during the reporting period was 9 (11), of which the number of employees in the research and development organization accounted for 5 (5). At the end of the period the number of employees related to the company's new direction amounted to 8 whereof 5 in research and development.

Outlook, including significant risks and uncertainties

Active Biotech's ability to develop pharmaceutical projects to the point at which partnership agreements can be secured, and the partner assumes responsibility for the future development and commercialization of the project, is decisive for the company's long-term financial strength and stability.

Following a portfolio refocus during 2020, Active Biotech currently holds three projects in its portfolio:

• naptumomab, a targeted anti-cancer immunotherapy, partnered to NeoTX, is in phase Ib/II clinical development in patients with advanced solid tumors
• tasquinimod, targeted towards hematological malignancies is in clinical phase Ib/IIa treatment of multiple myeloma
• laquinimod, targeted towards inflammatory eye disorders is advancing to a clinical phase I trial with a topical ophthalmic formulation and a phase II study with oral laquinimod for treatment of non-infectious uveitis. The studies are scheduled to start H2-2021

The partnership agreement entered with NeoTX in 2016 will have an impact on the company's future revenues and financial position if naptumomab progress in development. NeoTX initiated the clinical development of naptumomab in combination with a checkpoint inhibitor during 2019. A phase Ib/II study is ongoing and results from the phase Ib part are expected during the first half of 2021.

In 2020, Active Biotech entered into an academic collaboration with Penn University for the development of tasquinimod in multiple myeloma, a phase Ib/IIa study was initiated in August 2020, and the first safety readout is expected in H2-2021.

Active Biotech focuses its activities to secure value growth and conduct commercial activities aimed at entering new partnerships for tasquinimod in multiple myeloma and laquinimod in uveitis.

A rights issue was successfully concluded in January 2021 when SEK 74.1 M after issue costs was secured. The rights issue aimed at providing Active Biotech with the financial stability required to await the outcome of the ongoing clinical studies and to conduct negotiations with partners.

The existing liquidity together with revenues from existing and anticipated partnership agreements, are expected to finance operations in accordance with existing plans.

A research company such as Active Biotech is characterized by high operational and financial risk, since the projects in which the company is involved have both development, regulatory and commercialization risks. In addition, the ability of the company to attract and retain key people with both insights to the field of research, and relevant product development experiences is a significant risk.

In brief, the operation is associated with risks related to such factors as pharmaceutical development, competition, advances in technology, patents, regulatory requirements, capital requirements, currencies and interest rates. A detailed account of these risks and uncertainties is presented in the Directors' Report in the Annual Report 2019. With regards to the prevailing situation for COVID-19, it is uncertain how global measures against COVID-19, and prioritization of health care resources, may affect timelines of project and the ongoing and planned preclinical and clinical activities might be delayed with possible implications on the financing risks. The Group's operations are primarily conducted in the Parent Company, which is why risks and uncertainties refer to both the Group and the Parent Company.

Events after the end of the period

• Active Biotech and NeoTX announce FDA clearance of IND for phase II clinical trial of naptumomab

CONSOLIDATED PROFIT AND LOSS

	Jan-Mar		Full Year
SEK M	2021	2020	2020
Net sales	–	0.5	6.7
Administrative expenses	-3.3	-3.4	-13.5
Research and development costs	-6.4	-6.8	-25.5
Operating profit/loss	-9.7	-9.7	-32.3
Net financial items	0.0	-0.4	0.1
Profit/loss before tax	-9.8	-10.1	-32.2
Tax	–	–	–
Net profit/loss for the period	-9.8	-10.1	-32.2
Comprehensive profit/loss attributable to:
Parent Company shareholders	-9.8	-10.1	-32.2
Non-controlling interest	–	–	–
Net profit/loss for the period	-9.8	-10.1	-32.2
Comprehensive profit/loss per share before dilution (SEK)	-0.05	-0.06	-0.19
Comprehensive profit/loss per share after dilution (SEK)	-0.05	-0.06	-0.19

STATEMENT OF PROFIT AND LOSS AND CONSOLIDATED COMPREHENSIVE INCOME

	Jan-Mar		Full Year
SEK M	2021	2020	2020
Net profit/loss for the period	-9.8	-10.1	-32.2
Other comprehensive income	–	–	–
Total comprehensive profit/loss for the period	-9.8	-10.1	-32.2
Total other comprehensive profit/loss for the period attributable to:
Parent Company shareholders	-9.8	-10.1	-32.2
Non-controlling interest	–	–	–
Total comprehensive profit/loss for the period	-9.8	-10.1	-32.2
Depreciation/amortization included in the amount of	0.3	0.3	1.3
Investments in tangible fixed assets	–	–	–
Weighted number of outstanding common shares before dilution (000s)	199,322	168,606	168,606
Weighted number of outstanding common shares after dilution (000s)	199,322	168,606	168,606
Number of shares at close of the period (000s)	217,972	145,236	145,236

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Mar 31		Dec 31
SEK M	2021	2020	2020
Tangible fixed assets	1.5	2.9	1.9
Long-term receivables	0.0	0.0	0.0
Total fixed assets	1.5	2.9	1.9
Current receivables	3.5	3.4	4.1
Cash and cash equivalents	92.0	47.9	26.2
Total current assets	95.5	51.3	30.3
Total assets	97.1	54.2	32.2
Shareholders equity	86.5	43.7	22.1
Long-term liabilities	0.4	1.7	0.7
Current liabilities	10.2	8.8	9.4
Total shareholders equity and liabilities	97.1	54.2	32.2

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY

	Mar 31		Dec 31
SEK M	2021	2020	2020
Opening balance	22.1	53.8	53.8
Loss for the period	-9.8	-10.1	-32.2
Other comprehensive income for the period	–	–	–
Comprehensive profit/loss for the period	-9.8	-10.1	-32.2
Share-based payments that are settled with equity instruments, IFRS2	0.0	–	0.6
New share issue	74.1	–	–
Balance at close of period	86.5	43.7	22.1

CONDENSED CONSOLIDATED CASH-FLOW STATEMENT

	Jan-Mar		Full Year
SEK M	2021	2020	2020
Loss after financial items	-9.8	-10.1	-32.2
Adjustment for non-cash items, etc.	0.3	0.3	1.9
Cash flow from operating activities before changes in working capital	-9.4	-9.8	-30.3
Changes in working capital	1.5	-1.7	-1.9
Cash flow from operating activities	-8.0	-11.5	-32.2
New share issue	74.1	–	–
Loans raised/amortization of loan liabilities	-0.3	-0.3	-1.3
Cash flow from financing activities	73.8	-0.3	-1.3
Cash flow for the period	65.8	-11.8	-33.5
Opening cash and cash equivalents	26.2	59.7	59.7
Closing cash and cash equivalents	92.0	47.9	26.2

KEY FIGURES

	Mar 31	Dec 31
	2021	2020	2020
Shareholders equity, SEK M	86.5	43.7	22.1
Equity per share, SEK	0.40	0.30	0.15
Equity/assets ratio in the Parent Company	48.0%	24.6%	1.2%
Equity/assets ratio in the Group	89.0%	80.6%	68.8%
Average number of annual employees	9	11	10

The equity/assets ratio and equity per share are presented since these are performance measures that Active Biotech considers relevant for investors who wish to assess the company´s capacity to meets its financial commitments. The equity/assets ratio is calculated by dividing recognized shareholders´equity by recognizes total assets. Equity per share is calculated by dividing recognized shareholders´equity by the number of shares.

CONSOLIDATED PROFIT AND LOSS

			2017			2018				2019				2020
SEK M	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net Sales	4.7	5.1	5.1	5.4	4.8	5.7	4.7	4.8	5.5	1.1	0.9	0.9	0.5	–	–	6.2	–
Administration expenses	-4.1	-10.2	-2.5	-3.3	-2.9	-2.6	-2.5	-2.5	-2.8	-3.6	-2.7	-3.2	-3.4	-3.8	-2.9	-3.4	-3.3
Research and development costs	-15.2	-14.6	-9.1	-10.4	-10.5	-10.4	-9.1	-9.4	-9.1	-5.2	-5.3	-8.8	-6.8	-6.3	-5.5	-7.0	-6.4
Other operat ing expenses/ income	–	-3.3	–	-50.0	–	–	–	–	–	2.2	-2.2	–	–	–	–	–	–
Operating profit/loss		-14.6 -23.1		-6.5 -58.4	-8.5	-7.3	-6.9	-7.1	-6.4	-5.4		-9.3 -11.2		-9.7 -10.1	-8.3	-4.1	-9.7
Net financial items	-1.8	-1.8	-1.9	-1.8	-1.7	-1.7	-1.8	-1.8	-1.7	0.0	0.0	-0.1	-0.4	0.3	0.1	0.0	0.0
Profit/loss before tax		-16.4 -24.9		-8.4 -60.1 -10.2		-9.1	-8.7	-8.9	-8.1	-5.5		-9.3 -11.2 -10.1		-9.8	-8.2	-4.1	-9.8
Tax	0.6	0.6	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–
Net profit/ loss for the period		-15.8 -24.4		-8.4 -60.1 -10.2		-9.1	-8.7	-8.9	-8.1	-5.5		-9.3 -11.2 -10.1		-9.8	-8.2	-4.1	-9.8

ACTIVE BIOTECH PARENT COMPANY – INCOME STATEMENT, CONDENSED

	Jan-Mar	Full Year
SEK M	2021	2020	2020
Net Sales	–	0.5	6.7
Administration expenses	-3.3	-3.4	-13.5
Research and development costs	-6.4	-6.8	-25.5
Operating profit/loss	-9.7	-9.7	-32.3
Profit/loss from financial items:
Interest income and similar income-statement items	0.0	–	0.2
Interest expense and similar income-statement items	0.0	-0.4	-0.1
Profit/loss after financial items	-9.8	-10.1	-32.1
Tax	–	–	–
Net profit/loss for the period	-9.8	-10.1	-32.1
Statement of comprehensive income parent company
Net profit/loss for the period	-9.8	-10.1	-32.1
Other comprehensive income	–	–	–
Total comprehensive profit/loss for the period	-9.8	-10.1	-32.1

ACTIVE BIOTECH PARENT COMPANY – BALANCE SHEET, CONDENSED

	Mar 31	Dec 31
SEK M	2021	2020	2020
Financial fixed assets	40.5	40.5	40.5
Total fixed assets	40.5	40.5	40.5
Current receivables	3.5	3.2	3.9
Short-term investments	90.8	42.3	22.8
Cash and bank balances	1.0	4.8	3.3
Total current assets	95.3	50.3	30.1
Total assets	135.8	90.8	70.6
Shareholders equity	65.2	22.3	0.9
Current liabilities	70.6	68.5	69.7
Total equity and liabilities	135.8	90.8	70.6

Any errors in additions are attributable to rounding of figures.

NOTE 1: ACCOUNTING POLICIES

The interim report of the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable parts of the Annual Accounts Act. The interim report of the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act. For the Group and the Parent Company, the same accounting policies and accounting estimates and assumptions were applied in this interim report as were used in the preparation of the most recent annual report.

NOT 2: DISTRIBUTION OF SALES

	Jan-Mar	Full Year
SEK M	2021	2020	2020
Licence revenues	–	–	6.2
Service revenues	–	0.5	0.5
Other	–	–	–
Total	–	0.5	6.7

NOT 3: FAIR VALUE OF FINANCIAL INSTRUMENTS

	Mar 31, 2021	Dec 31, 2020
SEK M	Level 2	Level 2
Short-term investments	90.8	22.8

LEGAL DISCLAIMER

This financial report includes statements that are forward-looking and actual results may differ materially from those anticipated. In addition to the factors discussed, other factors that can affect results are developments in research programs, including clinical trials, the impact of competing research programs, the effect of economic conditions, the effectiveness of the company's intellectual patent protection, obstacles due to technological development, exchange-rate and interest-rate fluctuations, and political risks.

FINANCIAL CALENDAR

• May 19, 2021, Annual General Meeting
• August 5, 2021, Interim report
• November 4, 2021, Interim report
• February 9, 2022, Year-End report

The reports will be available from these dates at www.activebiotech.com

The interim report for the January – March period 2021 provides a true and fair view of the Parent Company´s and the Group's operations, position and results, and describes significant risks and uncertainties that the Parent Company and Group companies face.

Lund April 22, 2021 Active Biotech AB (publ)

Helén Tuvesson President and CEO

This interim report is unaudited.

Active Biotech AB (publ) (NASDAQ Stockholm: ACTI) is a biotechnology company that deploys its extensive knowledge base and portfolio of compounds to develop first-in-class immunomodulatory treatments for specialist oncology and immunology indications with a high unmet medical need and significant commercial potential. Following a portfolio refocus, the business model of Active Biotech aims to advance projects to the clinical development phase and then further develop the programs internally or pursue in partnership. Active Biotech currently holds three projects in its portfolio: Naptumomab, a targeted anti-cancer immunotherapy, partnered to NeoTX Therapeutics, is in a phase Ib/II clinical program in patients with advanced solid tumors. The small molecule immunomodulators, tasquinimod and laquinimod, both having a mode of actions that includes modulation of myeloid immune cell function, are targeted towards hematological malignancies and inflammatory eye disorders, respectively. Tasquinimod, is in clinical phase Ib/IIa for treatment of multiple myeloma. Laquinimod is advancing to phase II for treatment of non-infectious uveitis during second half of 2021. Please visit www.activebiotech.com for more information.