Page 1

Arctic Bioscience - company update Q1 and YTD 2021 Highlights • Raised NOK 300 million to fund pharmaceutical development program and new production facility Listed at Euronext Growth on February 24th • Signed 3 - year agreement with Smerud Medical Research International for phase II study of mild to moderate psoriasis drug candidate • HRO350 pharmaceutical project developing according to plan • Initiated research collaboration for development of new drug candidate for extremely premature infants • Maintain full year revenue growth target of 40 % + , mainly driven by H2 sales " The year this far has been an eventful one for Arctic Bioscience . We continued our ambitious plan for pharmaceutical development of the investigational medicinal product HRO350 and announced a new development project for extremely premature infants . The nutraceutical business has experienced revenue growth vs 2020 , with interesting opportunities in the pipeline . In addition , we are well on our way with the state - of - the - art production facility in Ørsta , which will support both the pharmaceutical and nutraceutical businesses when finalized . Combined with financial support from our shareholders , we are in a good position to develop the company further " , says CEO Ole Arne Eiksund in Arctic Bioscience . Operations Arctic Bioscience is a biotech company with a clinical phase pharmaceutical business unit and a commercial nutraceutical business unit . The company is built upon expertise in bioactive herring roe compounds and proprietary platform technology . During the first quarter of 2021 , Arctic Bioscience completed a private placement raising NOK 300 million . The proceeds from the transaction will be used to invest in the development of the company's novel treatment against mild - to - moderate psoriasis and to invest in a new state - of - the - art production and process facility . The proceeds will also be used to strengthen the company's financial capacity , to investigate new pharmaceutical indications , and conduct other selected pre - clinical trials . The company is in the process of developing a pharmaceutical drug candidate ( HRO350 ) based on herring roe - a novel oral treatment for mild - to - moderate psoriasis . Psoriasis prevalence rates range from 2 % to 6 % of the population in western countries , and approximately 90 % of patients suffering from mild - to - moderate disease . This corresponds to around 21 million psoriasis patients based in the USA and the EU - 5 alone and an annual revenue opportunity of more than $ 1 billion . A large , randomized Phase llb study scheduled to start in 2022. The company plans to manufacture HRO350 at the company's new facility in Ørsta . On March 3rd , Arctic Bioscience signed a 3 - year agreement worth NOK 75 million with Smerud Medical Research International to conduct a phase llb clinical study on psoriasis . The purpose of the study is to investigate the efficacy and safety of HRO350 and to establish the optimal dose . The study will include more than 500 patients and is planned to be conducted in seven countries , including Norway . Recruitment of patients will start in H1 2022 , with a planned 6 - month inclusion time and 6 - month data read - out in mid - 2023 . Nutraceuticals from Arctic Bioscience are sold worldwide as bulk ingredients to companies making dietary supplements and as finished goods under the ROMEGA ™ brand . Arctic Bioscience's go - to - market strategy for nutraceutical products is multi - dimensional including : 1 ) B2C sales of premium branded ROMEGA products on a subscription basis , 2 ) B2B sales of finished goods and bulk ingredients globally and 3 ) B2B2C strategic partnerships where all sales , marketing and distribution is outsourced to a partner with specific geographic capabilities . Through its strategic partnership with Kotler Marketing Group , Arctic Bioscience has developed a strong relationship for efficient market entry and sales growth in China .