The Disciplinary Committee of NASDAQ OMX Stockholm issues a warning to Active Biotech AB

2/13/2012 3:00 AM EST

NASDAQ OMX Nordic

The Disciplinary Committee of NASDAQ OMX Stockholm issues a warning to Active
Biotech AB

Stockholm, February 13, 2012 – The Disciplinary Committee of NASDAQ OMX
Stockholm AB (”the exchange”) has found that the listed company Active Biotech
AB has been in breach of the exchange’s rules and regulations for issuers in
respect of the information the company has provided to the stock market. 

The matter in question concerns the disclosure of information regarding the
as-yet unregistered drug laquinimod. According to an agreement with Active
Biotech, the Israeli company Teva Pharmaceuticals Industries Ltd (“Teva”) has
licensing rights for the said drug. The shares of Teva are listed on NASDAQ in
New York and on the Israeli exchange in Tel Aviv. 

Active Biotech has breached the procedures for the disclosure of information
regarding the publication of a press release pertaining to a Phase III study
into the drug laquinimod. Through a press release, Teva disclosed the findings
of the Phase III study to the North American market approximately 10 minutes
before the publication by Active Biotech of a Swedish press release, under the
headline ”Results of Phase III BRAVO trial reinforce unique profile of
laquinimod for treatment of multiple sclerosis.” 

This matter pertained to information that Teva possessed but that was of also
of considerable interest to Active Biotech’s shareholders. The Disciplinary
Committee is of the opinion that in cases where several parties are involved
the need for coordinated publication of price-sensitive information subjects
the listed company to rigorous demands in terms of procedures and systems for
information disclosure, since the timing of the parties’ publication must be
simultaneous in all respects. Accordingly, Active Biotech and Teva should have
established written routines governing how the joint disclosure of information
should be handled. 

With respect to the contents of the information, the Disciplinary Committee
states that Active Biotech is itself responsible for ensuring that the
information issued by the company is correct, relevant and clear, and is not
misleading, regardless of whether the primary information source is a business
partner. Insofar as this is not the case, this means that any references Active
Biotech makes to Teva do not constitute a valid excuse. In the opinion of the
Committee, it would have been more natural had the headline been formulated in
a more neutral manner, for example, by containing information stating that the
results of the previous study had been confirmed. However, the committee does
not feel that the headline was misleading in a manner that would warrant
disciplinary sanction against Active Biotech. 

In summary, the Committee finds that although Active Biotech can be blamed for
not having ensured that a written procedure was in place with Teva for the
joint disclosure of information, this lapse could be deemed excusable in view
of the circumstances, whereby a warning should suffice as the sanction. 

A comprehensive description of the matter and the Disciplinary Committee’s
ruling has been published on:
http://nasdaqomx.com/listingcenter/nordicmarket/surveillance/stockholm/disciplin
arycommittee 



About the Disciplinary Committee
The role of NASDAQ OMX Stockholm’s Disciplinary Committee is to consider
suspicions regarding whether Exchange Members or listed companies have breached
the rules and regulations applying on the Exchange. If NASDAQ OMX Stockholm
suspects that a member or a listed company has acted in breach of NASDAQ OMX
Stockholm’s rules and regulations, the matter is reported to the Disciplinary
Committee. NASDAQ OMX Stockholm investigates the suspicions and pursues the
matter and the Disciplinary Committee issues a ruling regarding possible
sanctions. The sanctions possible for listed companies are a warning, a fine or
delisting. The fines that may be imposed range from one to 15 annual fees. The
sanctions possible for Exchange Members are a warning, a fine or debarment.
Fines paid are not included in the Exchange’s business but are attributed to a
foundation supporting research in the securities market. The Disciplinary
Committee's Chairman and Deputy Chairman must be lawyers with experience of
serving as judges. At least two of the other members of the Committee must have
in-depth insight into the workings of the securities market. 

Members: Former Supreme Court Justice Johan Munck (Chairman), Supreme Court
Justice Marianne Lundius (Deputy Chairman), Professor emirita Madeleine
Leijonhufvud, Company Director Stefan Erneholm and Company Director Anders
Oscarsson. Deputies: Former Authorized Public Accountant Bo Magnusson, Lawyer
Wilhelm Lüning, Company Director Jack Junel, Ragnar Boman (MBA) and Carl Johan
Högbom (MBA). 



Media contact:
Carl Norell
NASDAQ OMX Corporate Communications
+46 8 405 66 39