Active Biotech sells its premises in Solna for SEK 190 million

22 Dec, 1999 12:36 CET

PRESS RELEASE

*
with possible incremental payments

*A capital gain of SEK 110 million for 1999, corresponding to SEK 10 per
share

*Research centralised in Sweden

*Result for 1999 estimated to be SEK 50 million better than previous
forecast

Active Biotech has concluded an agreement to sell their premises and
property in Solna to the Norwegian real estate company Selmer for SEK 190
million, plus further possible incremental payments. The property sale is
part of Active Biotech's strategy to free capital to enable it to
concentrate on its core activities - the research, development, marketing
and sales of vaccines and pharmaceutical products.

The transaction creates a capital gain of SEK 110 million for the
operating year 1999 and increases liquid assets by SEK 140 million.

Depending on the number of building permits granted in a new detailed
plan, additional incremental payments will take place with a maximum total
additional revenue of SEK 44 million.

A long-term lease has been signed at an initial annual rent of SEK 12,7
million. Particular consideration has been given to safeguarding SBL
Vaccin's need to expand production capacity for the manufacture of Dukoral
and the SBL Cholera Vaccine and additional capacity requirements for the
forthcoming ETEC vaccine product.

Research centralised in Sweden
All pre-clinical research has been centralised at the Lund facility and
projects have been prioritised and focused. The Actinova research projects
are being transferred gradually over a three-month period. The Actinova
prioritised projects, namely "Streptococcus A (tonsillitis) vaccine" and
"P-1025" (a caries treatment) are planned to enter Phase I clinical
trials during the coming year and these projects will continue with the
same external partners as planned previously.

Transfer of the project from Cambridge generates an annual cost saving of
SEK 35 million. Associated one-time costs are accounted for in the revised
forecast. Concentrating and co-ordinating R&D activities within the
existing organisation and facilities will increase overall cost-
efficiency.

The result for 1999 is estimated to be SEK 50 million better than previous
forecast. In view of the higher than expected capital gain on the property
sale, the savings measures already in effect this year and better net
financial items, the forecast for 1999 has been revised to SEK -65
million. This is an improvement of SEK 50 million compared with the
previous forecast.

In spring 1998, the new issue prospectus to shareholders and Swedish and
international institutions forecast a result of SEK -200 million per year
for the three-year period from 1998 to 2000. The actual outcome for 1998
was SEK -35 million and the new, revised forecast for 1999 is SEK -65
million.

Lund, 21 December 1999

Active Biotech AB (publ)

Sven Andréasson
President & CEO

Active Biotech AB is a Swedish biotechnology group focused on the research
and development of pharmaceuticals and vaccines. Our core competence is
knowledge of the human immune defence system. We have a high qualitative
project portfolio and considerable financial resources. Important products
are the Cholera-vaccine, vaccine against tourist diarrhoea (ETEC), and
innovative drugs against MS (SAIK). The turnover of Active Biotech was
SEK259 million in 1998.

Active Biotech AB
Box 724, S-220 07 Lund, Sweden
Tel: +46 46-19 20 00
Fax: +46 46 19 20 50
E-mail:  
www.activebiotech.com