Safe Harbor Statement

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Safe Harbor Statement

Certain statements made during the course of this presentation are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company, or industry results, to differ materially from any future results, performance or achievement implied by such forward-looking statements.

Statements made during the course of this presentation that are forward-looking are based on the company’s current beliefs regarding a large number of factors affecting its business. There can be no assurance that (i) the company has correctly measured or identified all of the factors affecting its business or the extent of their likely impact, (ii) the available information with respect to these factors on which the Company’s analysis is based is complete or accurate, (iii) the company’s analysis is correct or (iv) the Company’s strategy, which is based in part on this analysis, will be successful.

All forward-looking statements speak only as of the date of this presentation or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to the company or any person acting on the company's behalf are qualified by this cautionary statement. The company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events,

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• Swedish Biotechnology Company

• Core competence in Autoimmune/Inflammatory

diseases and Cancer

• Spin out from Pharmacia 1998

• Listed company NASDAQ OMX Nordic: ACTI

• Share price SEK 38.60 (5.85 USD), market cap

SEK 2.9 B (438 MUSD) as of February 24, 2014 • A total of 59 employees

Company overview

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Ref:Compston A, Coles A. Lancet. 2002;359:1221-1231.

MS pathology and disease progression

Frequent inflammation, demyelination, axonal transection, plasticity, and remyelination Infrequent inflammation, chronic axonal degeneration, gliosis

Relapsing-Remitting Secondary Progression

Clinical Disability Clinical Threshold Brain Volume Inflammation Axonal Loss Continuing inflammation, persistent demyelination 5

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Current Multiple Sclerosis Treatment Landscape

Injectable Oral Immunosuppressant • Lemtrada • Daclizumab (PIII) • Tysabri • Gilenya • Aubagio (Teriflunomide) Immunomodulator • Copaxone • Interferons • Plegridy (PEG-interferon) • Nerventra (laquinimod, PIII) • Tecfidera (BG-12)

Drugs on the market and in Phase III development

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Laquinimod for the treatment of MS

• Oral, once-daily CNS-active disease-modifying treatment for MS

• Delaying disability progression (34.2%*), reducing flares (21.4%*) and brain atrophy (30%*)

• Good safety profile in a large patient population

-7,490 patient years - Some patients exposed for more than seven years

• A committed and established partner in Teva

• An ongoing clinical development program

• EU market application (MAA) for the treatment of RRMS: negative opinion

from the CHMP January 2014; re-examination requested * Data from an integrated analysis of two Phase III studies (Allegro and Bravo).

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Relapsing Remitting Multiple Sclerosis (RRMS)

• CONCERTO - a third Phase III study ongoing under a SPA

- Two doses (0.6mg and 1.2mg) in approx. 1,800 RRMS patients for up to 24 months will be evaluated

- Primary endpoint confirmed disability progression as measured by the Expanded Disability Status Scale (EDSS)

Laquinimod clinical development

Other indications

• Clinical studies in Huntington’s disease and Primary Progressive Multiple Sclerosis (PPMS) to be initiated 2014

• Further clinical development in Crohn’s disease on hold until a clearer clinical strategy has been defined

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Teva Pharmaceutical Industries

• Teva has global exclusive rights to develop, register, manufacture and commercialize laquinimod since 2004

• Teva conducts and funds further clinical development of drug

• Expected to generate USD 92 million in overall milestones whereof

USD 22 million received so far

• Active Biotech to receive tiered double digit royalties on future sales - 15 year royalty period on country-by-country basis

- Higher royalty level in the Nordic/Baltic territory

Laquinimod Commercial Development and

Marketing Agreement

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Prostate cancer

Increasing disease progression

2-4 years Median survival 25-30 months

• Over 400,000 new prostate cancer patients diagnosed annually

• Prostate cancer market 2013E; 7 BUSD1)

1) _{Credit Suisse Oct 2013}

Surgery/radiation

Diagnosis Hormonal treatment

(approx. 50% of patients) Wait for progression Pre-chemo Taxotere + Pred. Post-chemo Local PC Metastatic CRPC Injectable Oral Targeting AR • Zytiga • Xtandi • Orteronel (PIII) Non-AR • Prostvac (PIII)

• Yervoy (PIII) • Provenge • Custirsen (PIII) • Jevtana • Xofigo (alpharadin) • Tasquinimod (PIII) • Cabozantinib (PIII)

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Tasquinimod - a new first-in-class oral

anti-cancer therapy

Tasquinimod, potentially a new therapeutic option for chemo naïve patients with metastatic CRPC

A unique MoA targeting the tumor’s microenvironment, mainly by binding the S100A9 protein

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Results

• 69 % of tasquinimod patients vs 34 % of placebo patients

had not progressed at 6 months (p<0.0001)1).

• Median Progression Free Survival 7.6 vs 3.3 months (p=0.0042) • OS data2) supports that the

observed increase in PFS will translate into an increased OS in a trial with sufficient statistical power

Tasquinimod: Treating castrate resistant

prostate cancer (CRPC)

Placebo switch on tasquinimod Phase II

• Disease progression: bone scan or CT scan, cancer pain, pathological event • 206 asymptomatic metastatic CRPC patients in the US, Canada and Sweden • 2:1 randomization 1.0 mg tasquinimod vs placebo

1) Pili et al, JCO Oct 20, 2011:4022-4028.

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Indication: Metastatic castrate resistant prostate cancer (mCRPC)

pre-chemo

Primary endpoint: Radiographic Progression Free Survival (rPFS) Key secondary endpoint: Overall survival (OS)

Study design: Randomized, double-blind placebo-controlled

Regions: Global including US/Canada, Europe & China

No. of patients: 1,245

Study status: Patient recruitment completed Dec 2012

Estimated filing: 2015

Coordinating

investigator: Michael A. Carducci, Johns Hopkins University, Baltimore, US

Ongoing Tasquinimod Phase III Trial

(approx. 50% of patients) Wait for progression Pre-chemo Taxotere + Pred. Post-chemo Local PC Metastatic CRPC 13

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Tasquinimod Phase III Analysis plan

• Primary radiographic progression-free survival (rPFS) analysis 2014

- at the same time as the first interim overall survival (OS) analysis

• Time point for the OS interim analysis will be driven by the number

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Prostate cancer

• Phase II proof of concept clinical study (“Switch maintenance”) of tasquinimod as maintenance therapy in patients with mCRPC who have not progressed after a first line docetaxel based chemotherapy (Ipsen)

• Phase I investigator sponsored clinical trial, led by Dr. Andrew

Armstrong at Duke University Hospital, US ( Tasquinimod and Jevtana)

Other cancers

• Phase IIa study with tasquinimod in metastatic renal, hepatic, ovarian and gastric cancer (Ipsen)

Tasquinimod Further Clinical Development

(approx. 50% of patients) Wait for progression Pre-chemo Taxotere + Pred. Post-chemo Local PC Metastatic CRPC Ph III Ph II Ph I 15

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Tasquinimod Co-development with Ipsen

• Partnership announced April 18, 2011

• Up to 200 M€, including 25 M€ upfront and 32 M€ milestones received so

far, and additional payments (upon achievement of clinical, regulatory and commercial milestones)

• Ipsen will pay Active Biotech progressive double-digit royalties on its net sales

• Active Biotech will be responsible for and finance the ongoing phase III trial • Active Biotech granted Ipsen exclusive rights to commercialize tasquinimod

worldwide, except for North and South America and Japan where Active Biotech retains all commercial and marketing rights

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Renal Cell Carcinoma (RCC)

• 180,000 new cases annually

1)

• RCC market 2011 – USD 2.7 billion

2)

1) Cowen Therapeutic Categories Outlook March 2010 2) EvaluatePharma March 2012 Diagnosis Surgery Approx. 50% cured Therapy Disease progression Metastases approx. 50% of patients 5-year survival 5-15 % 17

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ANYARA

• Selective drug retention in tumor tissue • Activation and targeting of effector T cells • Direct and indirect tumor cell killing

Therapeutic principle: SEA/E-120 C_L V_L5T4(V18) C_H V_H5T4(V14) SEA/E-120 C_L V_L5T4(V18) C_H V_H5T4(V14) ANYARA

Superantigen Anti-5T4 Fab

T lymphocyte Tumor cell

TCR 5T4 ANYARA TNF-α IFN-γ Direct killing by CTL

T lymphocyte Tumor cell

TCR 5T4 ANYARA TNF-α IFN-γ Direct killing by CTL

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Number of patients 513

Randomization IFNα vs ANYARA+IFNα

Countries UK, Ru, Uk, Bu, Ro (50 sites) Primary endpoint Overall survival

• From Phase I to Phase II/III powered for OS analysis in RCC • Primary endpoint not reached

• Subgroup analysis demonstrated proof of concept • Doubling of PFS and OS in 25% of patients

• Good safety profile, in line with previous observations; most common adverse events were grade 1-2 fever, nausea or vomiting

ANYARA: Phase II/III trial in RCC

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Phase II/III Subgroup Analysis

• The 25 % of patients with low/normal levels of the biomarker IL-6 at baseline and expected anti-superantigen antibody levels, showed a statistically significant treatment advantage on both OS and PFS

IL-6normal/low Anti-SAgexpected Baseline Anti-SAg B as el ine IL -6 Median M edi an

• OS for the ANYARA group 63.3 months vs

31.1 months for interferon-α, (p=0.02, HR=0.59) • PFS 13.7 vs 5.8 months (p=0.016, HR=0.62) •The subgroup accounts for 40-50% of the total

number of advanced RCC patients in North America and Western Europe

• Future development strategies discussed with regulatory authorities

• Next step a pivotal trial to treat a biomarker-defined group of renal cancer patients in second-line therapy – to start only when an out-licensing

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• Orphan indication - 1 to 3 per 10,000 in the US & EU • Chronic autoimmune disease of unknown cause

• Fibrosis and vascular abnormalities affecting the skin, subcutaneous tissue,

muscles and internal organs such as gastrointestinal tract, lungs, heart and kidneys • Clinically heterogeneous; autoantibody production, fibrosis and vascular damage • Current treatment aimed at controlling symptoms and preventing complications

Systemic sclerosis (SSc)

Paquinimod (57-57): Oral Treatment of SSc

• Quinoline molecule previously in clinical development for treatment of SLE • Orphan Medicinal Product status for the treatment of SSc granted in the EU • Exploratory clinical study in SSc concluded:

- 9 patients - safety

- evaluate effects on disease related biomarkers

• Next step a Phase II study in systemic sclerosis - will commence only when an out-licensing agreement has been reached with a partner

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The ISI (

“

Inhibition of S100 Interactions

”

)

Project

Background

• Quinolines bind S100A9 (PLoS Biology April 2009)

• S100A9 interacts with the pro-inflammatory RAGE and TLR4 receptors

• Inhibition of S100A9/TLR4 interactions delays tumor growth (PLoS ONE March 2012)

The ISI Project

• First indication oncology

• Development of NCE’s that target S100 protein interactions • Patent applications filed

• First CD selection Q4 2014 = compound OFF ON = RAGE = TLR4 = S100

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Financials January – December 2013

2013

2012

2013

2012

Net sales

116,0

227,9

17,8

35,1

Operating loss

-209,0

-163,2

-32,2

-25,1

Loss after tax

-212,1

-175,0

-32,6

-26,9

Jan - Dec

MSEK

MUSD

Cash on hand at December 31, 2013: MSEK 376,2 (57,9 MUSD)

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Share information

Active Biotech market cap(Feb 24, 2014) SEK 2.9 billion

USD 438 million

Number of shares: 74.9 million

Major shareholders (January 31, 2014) MGA Holding 19 392 963 25.9% Nordstjernan 9 850 829 13.2% Investor 6 000 000 8.0% 3rd AP fund 2 582 967 3.4% Avanza Pension 2 044 569 2.7% EFG Bank 1 232 658 1.6% JPM Chase 1 180 296 1.6% All other 32 639 300 43.6% Total 74 923 582 100.0% Ownership categories Swedish owners 83.9% Foreign owners 16.1% Number of shareholders 11 293 whereof 10 largest 60.6% whereof 20 largest 68.0% 25

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