Algeta exercises option and signs exclusive license agreement with Lumiphore, Inc. for novel technology for development of Targeted Thorium Conjugates (TTCs)

Oslo, Norway, 2 May 2013 - Algeta ASA (OSE: ALGETA), a company focused on the development of novel targeted cancer therapeutics, announces it has exercised its option to take an exclusive worldwide license to patented Lumi4(®) bi- functional chelator technology from Lumiphore, Inc. (Richmond, CA, USA) and has extended the collaboration to include additional chelator families. These technologies are currently being developed by Algeta to conjugate thorium-227 to tumor-targeting molecules to create Targeted Thorium Conjugates (TTCs). Lumiphore's Lumi4(®) technology is based on a unique class of bi-functional chelators[1] that forms a novel cage structure surrounding and tightly binding thorium-227, which can then be covalently attached to a range of tumor-targeting molecules, such as monoclonal antibodies, to create potential cancer therapeutics. Algeta originally signed an option/license agreement with Lumiphore around this technology in 2010 and subsequently extended it to enable further evaluation to be conducted. This stage of evaluation has now been completed successfully. In parallel with this license agreement, Algeta has also been granted a license by Lumiphore covering a second class of bi-functional chelators that bind strongly to thorium-227, with the option of including a further selection of compounds within that license if future exploratory work confirms their promise. Under the terms of the agreements, Algeta will pay Lumiphore the option exercise fee for the Lumi4(®) chelators, and a signature and option fee for the second class of chelators, plus development and sales milestones and a royalty on product sales. Further financial details have not been disclosed. Thomas Ramdahl, Algeta's Chief Technology Officer, said: "Algeta is assembling a broad portfolio of proprietary technologies (including bi-functional chelators, linkers and tumor-targeting molecules), intellectual property and expertise as a platform for generating Targeted Thorium Conjugates, or TTCs. The addition of the Lumiphore technologies to the portfolio through this license and further option agreements will ensure that we have access to the best bi-functional chelators for thorium-227 as we seek to create a pipeline of TTCs designed to address multiple high-value opportunities in targeted cancer therapy." Algeta's TTC strategy is based on gaining access to carefully selected tumor- targeting molecules, via in-licensing, collaboration or via third parties, to which it links thorium-227 thereby creating potential new therapeutics. Algeta's disclosed TTC programs include collaborations with Sanofi and Ablynx; programs based on CD22- (hematological cancer) and HER2-targeting (breast/ovarian cancer) molecules in-licensed from Immunomedics and Affibody, respectively; and a fully owned TTC program targeting hematological cancers. Algeta is advancing its preclinical pipeline with the aim of entering its first TTC into clinical trials in 2014. About Algeta's TTC Platform Algeta is evaluating the potential utility of alpha-particle emitting elements in the treatment of cancer. Previous studies[2] have indicated that such elements may have value in treating cancers by causing double-strand DNA breaks that trigger cell death, and have also shown that the effects of alpha-emission are highly localized as a result of the very short range of the alpha particle (2-10 cell diameters), potentially minimizing off-target effects. Thorium-227 is one alpha-particle emitting element (radionuclide) that has been selected by Algeta for further investigation. By linking thorium-227 to cancer-targeting molecules such as monoclonal antibodies, Algeta believes it may be possible to develop a pipeline of targeted alpha-pharmaceuticals, termed Targeted Thorium Conjugates, or TTCs. Algeta intends to evaluate TTCs in a broad range of cancer types to determine whether the TTC platform could offer advantages over naked (un-armed) antibodies or antibody-drug conjugate technologies that use cytotoxic drugs (rather than alpha-emitting elements) as payloads. Such advantages may include increased potency, a more localized tumoricidal effect and the potential to address drug resistance by virtue of the physical action of the alpha particles. For more information about Algeta's technology, please visit www.algeta.com. For further information about Algeta, please contact: Mike Booth / Renate Birkeli +47 23 00 67 32 Communications & Corporate Affairs ir@algeta.com Media enquiries: Mark Swallow +44 207 638 9571 Citigate Dewe Rogerson mark.swallow@citigatedr.co.uk Knut Ekern +47 22 04 82 00 Gambit Hill & Knowlton knut.ekern@hkstrategies.com Kari Watson +1 781 235 3060 MacDougall Biomedical Communications kwatson@macbiocom.com Investor enquiries: Tricia Swanson +1 646 378 2953 The Trout Group tswanson@troutgroup.com For further information on Lumiphore, Inc., please contact: Kenneth N. Raymond, Ph.D. President and Chairman Lumiphore, Inc. Tel./FAX: +510-232-8455 kraymond@lumiphore.com About Algeta Algeta is a company focused on developing novel targeted therapies for patients with cancer based on its alpha-pharmaceutical platform. The Company is headquartered in Oslo, Norway, and has a US subsidiary, Algeta US, LLC, based in Cambridge, MA performing commercial marketing operations in the US. Algeta is listed on the Oslo Stock Exchange (Ticker: ALGETA). For more information please visit www.algeta.com. About Lumiphore Based in Richmond, California, Lumiphore Inc, a privately held company, is a biotechnology leader in the development of proprietary luminescent-metal lanthanide and bi-functional chelation technology for use in high-value imaging and therapeutic applications which are commercialized through market-specific alliances with corporate partners.  Lumiphore has exclusive licenses to the science developed at the University of California, Berkeley in the laboratory of Professor Kenneth N. Raymond, a world expert on lanthanide and actinide chemistry.  For more information about Lumiphore, please visit www.lumiphore.com.  Lumi4(®) is a registered mark of Lumiphore, Inc.  Forward-looking Statements This news release contains certain forward-looking statements that are based on uncertainty, as they relate to events and depend on circumstances that will occur in the future and which, by their nature, may have an impact on results of operations and the financial condition of Algeta. Such forward-looking statements reflect our current views and are based on the information currently available to Algeta. Algeta cannot give any assurance as to whether such forward looking statements will prove to be correct. These forward looking statements include statements regarding future development activities generally and our TTC program in particular.  There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, among other things, risks or uncertainties associated with the success of future clinical trials, collaborations with other companies in the development of targeting molecules, general economic and business conditions and difficulties of obtaining relevant governmental approvals for new products, and the other risks and uncertainties described in our annual report. [1] Known as aromatic macrocyclic bi-functional chelators (AMBFs): one end binds the radionuclide (thorium-227) and the other end links to the tumor-targeting molecule. [2] Hall (1994) Radiobiology for the Radiologist (Lippincott, Philadelphia) This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Press release: http://hugin.info/134655/R/1698251/559894.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Algeta ASA via Thomson Reuters ONE [HUG#1698251]