Interim results for the fourth quarter and full year 2009

(Tromsø/Oslo, 26 February, 2010) Biotec Pharmacon ASA plans to initiate
accelerated stability studies with SBG in a number of product containers, after
disappointing results in clinical phase III in the fourth quarter 2009 and first
quarter 2010. Early evidence indicates that an unexpected interaction between
SBG and polyethylene in the product container may have rendered SBG inactive in
the phase III studies. The company is now working to confirm this hypothesis and
trust that its efforts will reestablish a platform for its pharmaceutical
development program.
 
Within the non-pharmaceutical area, the company realized a gain from the
divestment of Immunocorp Consumer Health AS and showed continued strong growth
in Biotec Marine Biochemicals ASA in the fourth quarter 2009 and for the full
year 2009.
 
All financial figures have been restated to account for the divestment of the
consumer health activities, which are now accounted for in the Income Statement
on a separate line after tax. Going forward the company will report on two
segments - Pharmaceutical Development and Marine Biochemicals- in addition to
Corporate and Unallocated Costs.
 
Revenue amounted to NOK 7 million in the fourth quarter 2009 and NOK 24.1
million for the full year 2009. This is driven mainly by Marine Biochemicals,
although Pharmaceutical Development recognizes revenue from supply of NBG to the
divested consumer health business.
 
Revenue in Marine Biochemicals amounted to NOK 17.6 million, and thus exceeded
the communicated revenue target of NOK 15 million for the full year. Biotec
Marine Biochemicals remains committed to doubling of revenue over the coming
three years. Moreover, the company aims to expand its portfolio of new enzymes
from exclusive rights to output from bio-prospecting activities at the
University of Tromsø (Sfi-MABCENT).
 
EBITDA was NOK -21.3 million in the fourth quarter, whereof Marine Biochemicals
accounted for NOK 2.0 million, Pharmaceutical Development for NOK -19.9 million,
and Corporate and Unallocated Costs for NOK -3.4 million.  EBITDA for the full
year 2009 was NOK -82.1 million, whereof Marine Biochemicals accounted for NOK
8.4 million, Pharmaceutical Development for NOK -71.1 million, and Corporate and
Unallocated Costs for NOK -19.4 million.
 
Loss before tax for the continuing business was NOK -21.3 million in the fourth
quarter and  NOK -82.1 million for 2009, reflecting the costs associated with
the clinical phase III program. Net loss for the continuing business was NOK
-52.4 million in the fourth quarter and NOK      -111.9 million for the full
year, which also reflects a reduction in accounted deferred tax assets as a
result of divestment of Immunocorp Consumer Health, disappointing phase III
study results and precautionary considerations..
 
Including net profit from discontinued activities, the company reported a net
loss of NOK        -37.1 million in the fourth quarter 2009 and a loss of NOK
-103.9 million for the full year.
 
The outcome of the phase III studies has changed and delayed the scope of
activities planned, and combined with a significant reduction in the manning at
the parent company, this is expected to lower costs related to Pharmaceutical
Development significantly in 2010. The completion and follow-up of the phase III
studies will entail relatively high costs in the first quarter of 2010, but the
company expects operations to be cash flow neutral in the second half of the
year. Biotech Pharmacon had cash and cash equivalents of NOK 50 million at the
end of the year, and believes this is sufficient funding to explore alternatives
for further SBG development in 2010. However, the company also continues
discussions with interested partners and industrial investors on alternatives
models for future collaboration on SBG.
 
Please find attached the full interim report for the fourth quarter and full
year.
 
For further information, please contact:
CEO Lars Viksmoen, mobile: +47 40 62 08 70
 
The full interim report for the fourth quarter and full year 2009 is also
available on www.newsweb.no and on www.biotec.no. The company hosts a
presentation of the interim results on Monday March 1 at 09:00 at Vika Atrium
Konferansesenter (Thon Conference Vika Atrium), Munkedamsveien 45, Oslo. The
presentation will also be available on www.newsweb.no <http://www.newsweb.no/>
and on www.biotec.no <http://www.biotec.no/>.
 
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
 
[HUG#1389282]
 
Quarterly report Q4: http://hugin.info/136141/R/1389282/347471.pdf