ArcticZymes Technologies — Investor Presentation 2011

Jan 21, 2011

BIOTEC PHARMACON

BIOTEC PHARMACON

Svein W. F. Lien - CEO

January 2011

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BIOTEC PHARMACON

Disclaimer

This presentation (the "Presentation") is not intended to form the basis of any investment decision or any decision to purchase Biotec Pharmacon ASA ("Biotec" or the "Company") shares. The recipients should at their initiative obtain relevant information and documentation as well as seek adequate investment advice.

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The information contained herein does not purport to contain all information of relevance for an investment decision. In all cases, interested parties should conduct their own investigation and analysis of Biotec, its business, prospects, results of operations and financial condition. No party has made any kind of independent verification of any of the information set forth herein, including any statements with respect to projections or prospects of the Company or the assumptions on which such statements are based, and does not undertake any obligation to do so. Neither the Company nor its advisors make any representation or warranty, express or implied, as to the accuracy or completeness of this Presentation or of the information contained herein, and shall have no liability for the information contained in, or any omissions from, this Presentation, nor for any of the written, electronic or oral communications transmitted to the recipient in the course of the recipient's own investigation and evaluation of the Company.

Included in this Presentation are various "forward-looking statements", including statements regarding the intent, opinion, belief or current expectations of the Company or its management with respect to, among other things, (i) goals and strategies, (ii) plans for new product development, (iii) marketing plans, the Company's target market, (iv) evaluation of the Company's markets, and (v) trends which may be expressed or implied by financial or other information or statements contained herein. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and outcomes to be materially different from any future results, performance or outcomes expressed or implied by such forward-looking statements.

Neither the receipt of this Presentation by any person, nor any information contained herein constitutes, or shall be relied upon as constituting, any advice relating to the future performance of the Company. Each person should make their own independent assessment of the merits of the business and should consult their own professional advisors. No liability whatsoever is accepted, and no representation, warranty or undertaking, expressed or implied, is or will be made by Biotec or any of its subsidiaries, affiliates, representatives, officers, employees, advisors or agents, or by any other persons identified in this Presentation, including projections and opinions, contained herein or for any errors, omissions or misstatements herein.

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BIOTEC PHARMACON

Agenda

• Biotec in brief
• Beta-Glucans
• Marine Biochemicals
• Financials and Summary

3

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Biotec Pharmacon
Value proposition
Tromsø

Beta -1,3/1,6-glucan

• Well documented effect in wound care - diabetic ulcer
• Animal study verified cause of unsuccessful phase III
• Company refocused on medical device product for ulcers/wounds
• Partner interest to take medical device to market
• Pharma path retained through partner interest and dormant development programs

Marine Biochemicals

• Profitable business based on unique cold adapted enzymes
• Strong healthy growth forecast (doubling of sales 2009-2012)
• Strong IP position for marketed products
• Large unexploited market
• Strong pipeline secured through strategic alliances and acquisition

20 years of research in key areas – strong IP based science

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BIOTEC PHARMACON

Agenda

• Biotec in brief
• Beta-Glucans
• Marine Biochemicals
• Financials and Summary

5

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BIOTEC PHARMACON

Biotec's history in Beta-Glucans

• >20 years experience in the Beta-Glucan science area
• Developed products and businesses in:
• Animal Health (sold 2008)
• Food supplement (sold 2010)
• Developed Soluble Beta-Glucans in late 1990'ies
• Started pharmaceutical development and made successful phase II trials
• Did not succeed in phase III due to lack of stability

Indication	Preclinical	Phase I	Phase II	Phase III	NDA
Diabetic Ulcer					Unsuccessful due to instability
Oral mucositis
Immunotherapy of cancer (mAb)
Cancer vaccine
IBD

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BIOTEC PHARMACON

Yes, it was stability!

• The gel was too fragile

SBG stored in polycarbonate containers perform better than the same batch stored in polyethylene ampoules.
2% SBG in treatment of acute wounds in diabetic mice

Accelerated stability data (37/4C w/shaking) shows that a more concentrated and solid gel has much better stability than the product used in the study

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BIOTEC PHARMACON

Sub-analysis of clinical data

Phase III with short storage showed clinical results in line with phase II data

Clinical phase III

SBG in "Nottingham" study
2nd batch (N=42)
Product stored for 3 months

Product % healed	Placebo % healed	p-value
52.4%	33.3%	0.22

Clinical phase II

Patients with complete healing (%)

8

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BIOTEC PHARMACON

SBG - Proof of Concept is still valid

• Focus on development of an advanced wound care product, for use in e.g. diabetic ulcer
• Intend to launch first product as medical device
• Development of drug product remains an option, with different technology at a later stage
• Additional indications:
• Immunotherapy of cancer, Phase I with MSKCC
• Inflammatory bowel disease (IBD), Pre-clinical
• Asthma - feasibility

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BIOTEC PHARMACON

Highlights Beta-Glucans

• There is no good Diabetic Ulcer treatment on the market
• Diabetic Ulcer is a USD 1.5 billion/year market
• Soluble Beta-Glucan (SBG) showed good clinical performance against Diabetic Ulcer in phase II, and the part of phase III performed with an active product
• Soluble Beta-Glucan (SBG) is likely to be effective in other advanced wound healing applications, with a market potential >USD 5 billion/year

> “No treatment for Diabetic Ulcer really works today”
>
> Professor William Jeffcote
> Department of Diabetes and Endocrinology, Nottingham City Hospital

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BIOTEC PHARMACON

Some existing wound care products: Price, classification, composition

Product name	Producer	Size	Main component 1 (ex water)	Main component 2 (ex water)	Approx price (Euro)
Normlgel	Mölnlycke	5/10 g	Xanthan gum	NaCl	8 (5 g)
Intrasite	S&N	8/15/25	Croscarmellose (CMC)	Propylene glycol	10 (8 g)
Purilon	Coloplast	15 g	CMC	Alginate	10
Tegaderm	3M	15 g	Propylene glycol	Guar gum	10
AquaSite	Derma Sc	28 g	"Special formulation"	Glycerine	8
Curasol	Healthpoint	28 g	Glycerin	glyceryl polyacrylate	10
Xelma	Mölnlycke	0.5/1 ml	Extracellular matrix	Prop.glyc. alginate	90 (0.5 ml)
Regranex	Systagenix	15 g	rhPDGF	Carmellose (CMC)	600

Class 2B Device

Class 3 Device

Drug

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BIOTEC PHARMACON

We know we can make a medical device

• Received general confirmation that a SBG topical wound product can be classified as a Medical Device in class IIb

Further to your query of the 31st August 2010 regarding the classification of Woulgan BioGel, I would like to confirm that the product appears to fall within the definition of a medical device. We consider that the product should be classified as a Class IIb medical device under rule 4.

Irish Medicines Board

• This means that a product may be developed and launched over the next 15-18 months
• Pros and cons with the various classifications, as to e.g. product claims - We have a high degree of freedom

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BIOTEC PHARMACON

Partner process

• Partner talks ongoing - well positioned in the topical wound care market
• First goal is a two-step partnership:
• A joint development project to ensure best possible product design and product(s) competitiveness
• A joint launch and market penetration program to ensure maximum growth and value creation
• Partner process will determine product classification
• Partner preferences, and Biotec’s choice of balance between risk, time, investments, and potential

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BIOTEC PHARMACON

Wound healing activity plan and timeline

-in a class 2B device scenario

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BIOTEC PHARMACON

Agenda

• Highlights and overview
• Beta-Glucans
• Marine Biochemicals
• Financials and Summary

15

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Overview and outlook

• Several patent protected cold adapted Arctic ocean enzymes with unique heat inactivity features
• Used in RNA/DNA processing, e.g. PCR sample preparation, for removal of contaminants
• Attractive market at ~USD 2bn, growing at >10%. Enzymes make up 5-10% of the market
• Strong need for new products
• Expanding from research market to routine kits

November 12, 2010

MARINE BIOCHEMICALS

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Gearing for international expansion

Key Issue: Outstanding products – few customers – broad applications

Focus I Exhibitions to generate sales and trial requests
Successful for 2010 – 89 new trials vs 9 in 2009

Focus II Optimize supply chain – local warehouses

Focus III Increase fields sales activity for 2011
Key account managers USA and Europe

Focus IV Considering moving up the food chain

Focus V Further recognition by key opinion leaders, i.e:
Gregg Shipley at XGen, San Diego, PCR Insider and Labmanager.com webcast 23 July

New Roche kit with our dsDNase:

Key Opinion Leader testimonial

Their Transcriptor runs at 55°C, which is actually a pretty toasty reverse transcriptase reaction; but they run the DNase reaction, even though it's suboptimal, at 29°C to do the DNAse, and then they go on and make the cDNA... boy, the data looks pretty nice so far

Gregg Shipley, Professor UTHSC-Houston, PCR Insider 31 March 2010

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MARINE BIOCHEMICALS

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New products out of Bioprospecting

• Long tradition for collaboration with academic institutions
• Have given access to:
• Unique products
• Strong product knowledge
• Strong IP protection
• Acquisition of Marimol secured exclusive rights to commercialize outcome of MARZymes project
• Received NOK 35 M in up front grants from NFR
• Participation as exclusive enzyme partner in MabCent is starting to generate new product candidates
• STRONG PIPELINE!

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MARINE BIOCHEMICALS

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BIOTEC PHARMACON

Agenda

• Highlights and overview
• Beta-Glucans
• Marine Biochemicals
• Financials and Summary

19

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BIOTEC PHARMACON

Key figures for business areas

Annual run rate corporate cost at NOK [x]m

Pharmaceutical Development
Cost level reduced

Marine Biochemicals
3Q sales postponed until 4Q (Oct at NOK 3.8m)

Sales EBITDA

Sales of NOK 3.8m in October On track for full years sales target

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BIOTEC PHARMACON

Cash position to finance operation until mid 2012

Private placement end December of NOK 22.5m + rights issue

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BIOTEC PHARMACON

Summary

Beta-Glucans

• We are about to develop a wound healing product for Diabetic Ulcer and potentially other wound care applications
• It is a substantial need for an effective treatment in wound care
• The partner process is ongoing and will determine what product formulation that will be the preference

Marine Biochemicals:

• Internationally recognized as a provider of unique enzymes for RNA/DNA analyses
• On track for doubling of revenue from 2009-2012
• The new MARZymes agreement significantly expands the potential of the enzyme business in the longer term

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Questions / Discussion