Release no. 22/2011

Copenhagen and Oslo, 17th November, 2011, 2011-11-17 09:15 CET (GLOBE NEWSWIRE)
--
Affitech A/S (NASDAQ OMX: AFFI) the antibody medicines Company, today announced
a restructuring of the Company that will result in a staff reduction of about
24 people at the Company's subsidiary, Affitech Research AS in Oslo, where its
main Research and Development operations take place. The reasons for this
restructuring exercise are (i) to focus more of its spending on development of
its lead antibody products and (ii) to extend the period available to the
Company for raising fresh capital.


Focus on Product Development

The Company has completed preclinical research on its lead antibody AT001/r84,
a new selective antibody to vascular endothelial growth factor (VEGF), a major
target of anti-cancer medicines. The Company has also completed the research
phase of its AT008/anti-CCR4 program and has selected a monoclonal antibody
development candidate as its second potential anti-cancer drug. Affitech now
intends to focus its resources on supporting the clinical development of
AT001/r84 and the preclinical development of AT008/anti-CCR4.This second
potential anti-cancer product is the first functional antagonist of CCR4, a
G-protein coupled receptor (GPCR) found on the surface of many cancer cells.
The antibody was discovered using the Company's proprietary CBAS(TM) technology
platform. Affitech will continue its discovery research on other novel
anti-GPCR drug candidates and maintain its core technologies and expertise
within the Company.


Financial Considerations

In April 2010, Affitech entered into a subscription agreement with Trans Nova
Investments whereby Trans Nova Investments became the controlling shareholder
of the Company with an equity position of approximately 53% of the Company. At
the same time, Affitech signed a Research and Development collaboration and
license agreement with NauchTekhStroy Plus (later transferred to IBC Generium)
under which IBC Generium gained exclusive rights to license each of Affitech's
two lead products (AT001/r84 and AT008/anti-CCR4) for the Russia and CIS
markets.

The pre-clinical package for AT001/r84 for Russia/CIS was completed in October
2011, and the Company announced on October 20th, 2011 that it had received a
€2.5 million milestone fee as the second of a number of agreed license and
milestone payments to be paid during the development of the product in Russia.
AT008/anti-CCR4 has also progressed well, and Affitech expects to receive a
€2.0 million license fee in the current month, as the first of a number of
license and milestone payments following the exercise by IBC Generium of the
license for the development of the product in Russia/CIS. These license and
milestone fees are included within the Company's budget for 2011. Affitech
announced in its Q2 2011 report that the Company would require further equity
financing by the end of Q1 2012 in order to pursue its present activities.

Trans Nova Investments has indicated to Affitech's Board of Directors that they
do not intend to solely fund Affitech's further activities at the present rate
of cash utilization. As a result, over the last few months the Company has
investigated potential co-investor leads for financing, and this process will
continue for the coming months. The Board of Affitech views the quality of the
Company's technology and new product opportunities as very strong and believes
that the company has the basis and the competitive edge for further financing
its Research and Development. However, due to the currently difficult financial
market, a new financing process is likely to take time and cannot be
guaranteed. The Board of Affitech has therefore decided to reduce expenses and
cash flow in order to extend the period during which the Company can continue
its operations while seeking new investment on an international basis. By
implementing the staff reductions announced today and other cost cutting
measures and focusing its activities as described, the Board of Directors
expects the Company to have sufficient funds until end of Q2 2012.


Outlook

The financial outlook for 2011 is changed to an estimated loss of 45-55 million
DKK compared to a loss of 50-60 million DKK as previously announced. This
includes restructuring expenses of up to 5 million DKK offset by a general
lower operating cost level than previously expected in Q4 and the initial
impact of the cost saving measures taken. The cash position at year end 2011 is
expected to be in the range of 25 million DKK. The annual cost saving effects
of the announced restructuring is estimated to be 18 million DKK.

Affitech will provide more detail on the progress of its Research and
Development programs and its financial status in the Company's Q3 2011 Report,
which will be issued on November 24th 2011.


About Affitech

Affitech A/S is a publicly traded (NASDAQ OMX Copenhagen) human therapeutic
antibody company based in Copenhagen, Denmark with R&D facilities in Oslo,
Norway. The Company utilizes a range of proprietary antibody technologies for
the discovery of fully human antibodies for application in oncology,
inflammation and other disease areas. CBAS™ (Cell Based Antibody Selection) is
Affitech's premier discovery engine for the isolation of lead antibodies to
cell surface molecules. Affitech co-develops its two lead antibody drug
programs AT001/r84 and AT008/CCR4 with Russian partner IBC Generium. The
Company's initial focus is on rapid and cost effective development by
partnering clinical trials in emerging markets. Further information is
available at www.affitech.com.


Disclaimer
This announcement may contain forward-looking statements including statements
about Affitech's expectations of the progression of its pipeline including the
timing for commencement and completion of clinical trials and with respect to
cash burn guidance. Such statements are based on Management's current
expectations and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. Affitech cautions investors that there can be no
assurance that actual results or business conditions will not differ materially
from those projected or suggested in such forward-looking statements as a
result of various factors, including, but not limited to, the following: risks
associated with technological development, the risk that research & development
will not yield new products that achieve commercial success, the impact of
competition, the ability to transact viable and profitable commercial deals,
the risk of non-approval of patents not yet granted, and difficulties of
obtaining relevant governmental approvals for new products. No expressed or
implied representations or warranties are given concerning Affitech A/S or the
accuracy or completeness of the information provided herein, and no claims
shall be made by the recipient of this news release by virtue of the
information contained herein.

Contact:

Randi Krogsgaard, Director IR & Corporate Communications

Tel # +45 2320 1001, e-Mail: [email protected]

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