ArcticZymes Technologies — Investor Presentation 2010

Jan 21, 2010

BIOTEC PHARMACON

BIOTEC PHARMACON

Immunity for Life™

Ekstraordinær Generalforsamling

Tromsø 21. januar, 2010

Lars Viksmoen, CEO

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BIOTEC PHARMACON

3Q09 Messages

• Pharma:
• Q4'09: Results from both phase III studies for diabetic foot ulcer, expected already in November
• Q1'10: Results from first phase III study for oral mucositis
• Q3'10: Filing for MAA in Europe for diabetic foot ulcers in July 2010

• 2H'10: Securing commercial partner for launch of SBG for treatment of diabetic foot ulcer

• Non-pharma:
  Continued growth of Biotec Marine Biochemicals, revenue decline to be met with cost measures in Immunocorp

• Funding:
  Processes ongoing to secure funding through 2010

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BIOTEC PHARMACON

Tracking of partnering activities

Dialogue with > 150 companies
Strong interest expressed by > 60 companies
Confidentiality agreements with approx. 30 companies

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BIOTEC PHARMACON

What happened during Q4?

• End of November
• Two negative phase III studies
• Severe market capitalization drop
• Early December
• Significant cost management
• Significant organizational downsizing
• End of December
• Capitalization on non-core business (ICH)

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BIOTEC
PHARMACON

Phase III – diabetic foot ulcer

Two negative pivotal studies - a big surprise !

Blue area = periods of patient inclusion, black areas = periods of study completion and reporting

Q4 2009 • Two negative phase III studies
Q12010 • Investigating reasons behind the negative studies
Q12010 • Re-direct the pharma development strategy
2010 • Identify alternatives to capitalize on DU

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BIOTEC PHARMACON

Possible explanations

• Study design flaws
• Technical study flaws
• Product flaws
• SBG
• Placebo

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BIOTEC PHARMACON

Re-analysis of study medication

Planned sampling of drug substance/product

Substance	Storage place
Drug substance
(API)	Quality laboratorium Tromsø
Drug product
(PE-ampules)	Production factory Tromsø
(fra Holopack)
Drug product
(PE-ampules)	Return from study centers
(UK og Europa)

• Where available also compared with samples of drug substance/product from phase I and II
• Basket of tests, both for SBG and placebo

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BIOTEC PHARMACON

New organization after downsizing

Biotec Pharmacon ASA

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BIOTEC PHARMACON

New organization

Biotec Marine Biochemicals AS

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BIOTEC PHARMACON

Immunocorp Consumer Health Divested end of Q4

• Divested non-core business
• Good strategic match with buyer
• Selling price: 31,5 MNOK
• 5-year supply agreement

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BIOTEC PHARMACON

Biotec Marine Biochemicals ASA Enzymes for R&D and diagnostics markets

• Strong revenue growth
• High EBITDA-margin: ~40% on a stand-alone basis
• Exceeded 2009 revenue target of 15 MNOK, achieving 17,5 MNOK
• Longer-term revenue target: More than doubling over the next three years

Molecular structure of cod Uracil-DNA N-glycosylase (Leiros, et al. 2003)

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BIOTEC PHARMACON

SBG development pipeline

Immunotherapy of cancer:

• Phase I/II studies with SBG in combinations with mAbs for;
• Neuroblastoma
• Non-Hodgkins’ lymphoma
• Breast cancer
• Further progress pending strategic decisions

Other potential indications:

• Filed patent application with SBG for inflammatory bowel disease (IBD)
• Filed patent application with SBG for asthma

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BIOTEC PHARMACON

Summary

Moving forward

• Identify and address reasons behind phase III diabetic foot ulcer results
• Re-establish the pharmaceutical strategy platform
• Ensure funding for future R&D activities

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BIOTEC PHARMACON

The End

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BIOTEC PHARMACON

Back-ups

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BIOTEC PHARMACON

Oral Mucositis – Clinical Program

Clinical phase	2008				2009				2010
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Phase III, Europe
Phase III, Eastern Europe	2^{nd} study put on hold awaiting results from the 1^{st} study

Blue area represent periods of patient inclusion, black areas represent periods of study completion and reporting

• Treatment follow-up completed in Q4 2009
• Study results expected in Q1 2010
• Possible second study and timing of filing pending these results
• Lowered expectations...

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BIOTEC PHARMACON

Re-analysis of study medication

Planned tests

SBG	Placebo
Visual inspection	Visual inspection
Identification	Identification
Biological activity	Biological activity
Endotoksin-content	Endotoksin-content
SEC-MALS-RI
(molecular weigth distribution)
	Contamination of glukan