SOURCE: Affibody AB

March 30, 2007 03:40 ET

Affibody issues new shares of SEK 200 million

BROMMA, SWEDEN -- (MARKET WIRE) -- March 30, 2007 --


Affibody Holding AB, a biotech company that has developed a late-stage pipeline of oncology products for molecular imaging and targeted therapy, issues new shares amounting to SEK 200 million. Affibody's mission is to provide the medical community with previously not available information for timely cancer diagnosis and appropriate individualized treatment regimes.

The issuance of new shares gives Affibody a capital infusion of approximately SEK 107 million through a private placement with new and existing investors. At the same time, loans from shareholders totaling SEK 93 million are set off against new shares. Among the new investors, which invested in total SEK 57 million, are the Third Swedish National Pension Fund, Kaupthing Bank, Lage Jonason, Stena Sessan and Ingvar Kamprad.

The net proceeds from the private placement will be used for the clinical development program for a product intended for the diagnosing of an aggressive form of breast cancer. The market potential for the product is exceeding one billion Euros per year. The product is expected to be commercially launched in 2009.

"The research within the cancer area is heading towards more specific diagnostic methods and individualized treatment regimes. Affibody has a unique position within these areas, as our targeting molecules can be efficiently used for the identification and treatment of certain cancer forms", says Ulf Boberg, CEO of Affibody.

The key components of Affibody's proprietary technology platform are the Affibody® molecules, unique and highly specific affinity ligands that can be designed to bind to any target protein. Based on its proprietary technology, Affibody has developed a unique pipeline of oncology products. Affibody has also entered a number of commercial collaborations where the company develops Affibody® molecules for use in the partners' applications. Among the collaboration partners in molecular imaging is GE Healthcare.

After the issuance of new shares, Affibody's five main owners besides the founders are: HealthCap, Investor, Schroder Ventures Life Sciences, Life Equity Sweden and the Third Swedish National Pension Fund.

Lage Jonason AB acted as financial advisor for the private placement.

For further information, please contact:

Ulf Boberg, Chief Executive Officer
+46 8 598 838 10, ulf.boberg@affibody.com

Erika Johnson, Chief Financial Officer
+46 8 598 838 16, erika.johnson@affibody.com
About Affibody

Affibody is a biotech company that has developed a late- stage pipeline of oncology products for molecular imaging and targeted therapy. Affibody's mission is to provide the medical community with previously not available information for timely cancer diagnosis and appropriate individualized treatment regimes.

The key components of Affibody's proprietary technology platform are unique and highly specific affinity ligands: Affibody® molecules. These small robust protein molecules are easy to produce and can be designed to bind to any target protein. The Affibody molecules are ideal for molecular imaging. Importantly, the same Affibody® molecule can, with a cytotoxic payload, be used for targeted therapeutics. Affibody's vision is to be a leading player in the emerging field of molecular imaging and targeted therapeutics.

The company's lead product for molecular imaging is targeting HER2, a key receptor on e.g. certain breast cancer tumors, and is expected to be commercially launched in 2009. Affibody® molecules specific for other oncology targets are in development and will provide a steady stream of new molecular imaging products and subsequently, targeted therapeutic products. Affibody also develops Affibody® molecules within commercial collaborations for various applications.

Affibody was founded in 1998 by researchers from the Royal Institute of Technology and the Karolinska Institute in Stockholm. Investors in Affibody Holding AB include HealthCap, Schroder Ventures Life Sciences and Investor. Affibody is based in Stockholm, Sweden and has 50 employees. Further information is found on: www.affibody.com

Statements in this press release that are not strictly historical may be forward-looking and include risks and uncertainties. Therefore, though based on Affibody's current expectations, it should be duly noted that a variety of factors could cause actual results and experiences to differ materially from what is herein expressed. Risks and uncertainties include, but are not limited to, risks associated with the management of growth and international operations (including effects of currency fluctuations), variability of operating results, unforeseen changes in the diagnostic and pharmaceutical markets, market competition, rapid or unexpected changes in technologies, fluctuations in product demand, difficulties to successfully develop, adapt, produce or commercialize products, the ability to identify and develop new products and to differentiate products from those of competitors, as well as various legal hazards.

Copyright © Hugin ASA 2007. All rights reserved.

Contact Information