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2016-11-01

Xbrane Biopharma AB: Xbrane signs term-sheet for distribution of Spherotide in China generating approx. SEK 70 M in revenue until market approval and expected s

Press release

2016-11-01

Xbrane Biopharma has signed a non-binding term sheet with a leading Chinese
pharmaceutical company regarding the distribution of Spherotide in the
Chinese market. The commercial terms are negotiated and the intended
transaction will give the Chinese company exclusive rights to sell and market
Spherotide in China. According to the agreed structure of the intended deal
Xbrane will receive a downpayment of SEK 17 million at the signing of the
final contract, which is expected in Q1 2017, as well as three equally sized
milestone payments totalling approximately SEK 70 million until the product
launch scheduled for 2021. The Chinese partner will be responsible for and
finance the clinical trials required to obtain market authorization in China.

The Chinese company is one of the largest pharmaceutical companies in the
Chinese market with established distribution channels in all regions.

"For us it is important to find the right partners with established
distribution channels. During negotiations we have reached common
understanding regarding the full sales potential of Spherotide," says Martin
Åmark, CEO of Xbrane Biopharma.

Spherotide will, for the Chinese market, be produced in Xbranes production
facility in Italy for resale to the Chinese partner at a transfer price.
Xbrane estimates that Spherotide can generate annual revenues of
approximately SEK 350 million with expected penetration in the Chinese market
via Xbrane's partner.

"We have since we intensified our efforts to find partners for different
markets seen that Xbrane have a strong negotiating position regarding
Spherotide because it is the only generic product for a well-used originator
drug. We are currently in negotiations with several parties regarding
distribution in other geographies and expect that more deals will be signed
over the coming quarters, "said Martin Åmark, CEO of Xbrane Biopharma.

Spherotide is a generic to the drug Decapeptyl® with global sales of
approximately SEK 4 billion. It is a depot formulation drug with the active
substance triptorelin and is used primarily in the treatment of prostate
cancer, endometriosis and uterine fibroids. The drug is based on
encapsulation of the active ingredient in biodegradable microspheres that
degrade in the body after injection and create a long acting effect.
Spherotide is, because of the technological difficulties in the development
and production of microsphere-based drugs, the only generic to Decapeptyl®.

About Xbrane

Xbrane is a commercial phase Swedish biopharmaceutical company specialized in
High Demand Biosimilars and long acting injectables. Xbrane has world leading
expertise in developing generics for long acting injectable drugs and
proprietary high-yield protein expression technology for the development of
biosimilars. Xbranes's headquarter is located in Stockholm and the company's
in-house research and development facilities are in Sweden and Italy. Xbrane
is listed at Nasdaq First North since February 3rd under the name XBRANE and
Avanza Bank AB is Xbranes certified advisor. For more information see
www.xbrane.com.

For further information, please contact:

Martin Åmark
Chief Executive Officer
M: +46 (0) 763-093 777
E:martin.amark@xbrane.com

This information is information that Xbrane Biopharma AB (publ) is obliged to
make public pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person set out
above, at 8:00 November 1 2016.

Press release - Term sheet for Spherotide China
http://hugin.info/171873/R/2053246/768479.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Xbrane Biopharma AB via Globenewswire

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