The News

Ablynx and Domantis settle their dispute and stop the arbitration process

12/10/2009

GHENT, Belgium, 12 October, 2009 - Ablynx [Euronext Brussels: ABLX], today announced that it has reached a settlement with Domantis (part of the GlaxoSmithKline group of companies) concerning an alleged dispute relating to a settlement agreement which Ablynx and Domantis entered into in 2005.
Under the new agreement Ablynx has received a license to the European Winter II patent which lay at the heart of the dispute and in return will pay Domantis low single-digit royalties on the first five Nanobody® products which are commercialised.
Dr Edwin Moses, CEO and Chairman of Ablynx, commented:
“We are very pleased to have settled with Domantis so that we can focus on our key goal of developing Nanobody® products and driving them through the clinic. We believe our investors want us, where possible, to put our resources into R&D productivity rather than litigation. The fact that there are two Nanobodies® in Phase II trials, and by the end of 2009 there will be a total of four in the clinic, is a testimony to the power and promise of our technology.”

About Ablynx [Euronext Brussels: ABLX] -
Founded in 2001 in Ghent, Belgium, Ablynx is a biopharmaceutical company focused on the discovery and development of Nanobodies®, a novel class of therapeutic proteins based on single-domain antibody fragments, for a range of serious and life-threatening human diseases. The Company currently has over 220 employees. Ablynx completed a successful IPO on Euronext Brussels [ABLX] on 7 November 2007.
Ablynx is developing a portfolio of Nanobody®-based therapeutics in a number of major disease areas, including inflammation, thrombosis, oncology and Alzheimer’s disease. Nanobodies® have been generated against more than 150 different disease targets. Efficacy data have been obtained in over 26 in vivo models for Nanobodies® against a range of different targets.
Ablynx has an extensive patent position in the field of Nanobodies® for healthcare applications. It has exclusive and worldwide rights to more than 50 families of granted patents and pending
patent applications, including the Hamers patents covering the basic structure, composition, preparation and uses of Nanobodies®.
Ablynx has ongoing research collaborations and significant partnerships with several major pharmaceutical companies, including Boehringer Ingelheim, Merck Serono, Novartis and Wyeth Pharmaceuticals. Ablynx is building a diverse and broad portfolio of therapeutic Nanobodies® through these collaborations as well as through its own internal discovery programmes.
The Company’s lead programme, ALX-0081, an intravenously administered novel anti-thrombotic has entered Phase II in patients undergoing percutaneous coronary intervention (PCI). ALX-0681, a subcutaneous formulation of the novel anti-thrombotic Nanobodies® that also selectively targets von Willebrand factor (vWF) has concluded Phase I. Ablynx has progressed ALX-0141, an anti-RANKL Nanobody® for bone disorders into preclinical development and aims to initiate a Phase I study before the end of 2009. ALX-0061, an anti IL6R Nanobody® is in preclinical development for the treatment of autoimmune and inflammatory diseases. In addition, in December 2008, Ablynx’s partner Wyeth Pharmaceuticals entered a Phase I study with an anti-TNF-alpha Nanobody® and a Phase II study was initiated in September 2009.

About Domantis’ Request for Arbitration against Ablynx
On 5 February 2008, Domantis Limited filed a Request for Arbitration against Ablynx claiming a dispute existed in relation to a settlement agreement which Ablynx and Domantis entered into on 3 June 2005. In its arbitration claim, Domantis asserted that certain of Ablynx’s activities were not permitted by the terms of the settlement agreement. Domantis claimed that it was seeking, amongst other things, damages and an order to prevent Ablynx from engaging in these activities in the future.
Ablynx denied these claims in their entirety and responded to the filing by seeking an affirmative declaration that Ablynx is fully entitled to pursue its current activities and that it has not defaulted on any material obligation under the settlement agreement. Ablynx also asserted various alleged counterclaims against Domantis in connection with its conduct.
Ablynx disclosed in its prospectus dated 12 October 2007 that GlaxoSmithKline (GSK) (who had acquired Domantis) had notified Ablynx that it believed that a dispute existed in relation to the interpretation of certain provisions of the settlement agreement between Ablynx and Domantis. This settlement agreement relates to the so-called Winter-II patent which expires in Europe in 2009.

Nanobody® is a registered trademark of Ablynx NV.
For more information, please contact:
For international media enquiries: College Hill Life Sciences
Ablynx:
Sue Charles, Justine Lamond,
Dr John McIntyre
t: +44 (0)20 7866 7857
e: ablynx@collegehill.com
Dr Edwin Moses
Chairman and CEO
t: +32 (0)9 262 00 07
m: +44 (0)7771 954 193 / +32 (0)473 39 50 68
e: edwin.moses@ablynx.com
Eva-Lotta Allan
Chief Business Officer
t: +32 (0)9 262 00 75
m: +32 (0)475 78 36 21 / +44 (0)7990 570 900
e: eva-lotta.allan@ablynx.com

Certain statements, beliefs and opinions in this press release are forward-looking, which reflect the Company’s or, as appropriate, the Company’s directors’ current expectations and projections about future events. By their nature,
forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Forward looking statements contained in this press release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this press release as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based. Neither the Company nor its advisers or representatives nor any of its or their parent or subsidiary undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this press release or the actual occurrence of the forecasted developments. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release.