Chairman's Statement

Bringing RNA medicines one step closer to market

2009 was a challenging year for many industries across the globe including without doubt the pharmaceutical and biotechnology sectors. While there were signs of recovery towards the end of the year, the global economy is still struggling. Despite the many challenges presented, however, I remain optimistic for the biopharmaceutical industry as we head into 2010.

In December 2009, leaders from all over the world descended upon Copenhagen, Denmark to participate in the global climate conference to discuss the future of climate control and policy. The vigorous and heated debates centered around the need for change, understanding new ways of thinking and continued progress in innovation in order to address the climate issues affecting the world today.

These passionate debates reminded me of the early days of the biotechnology industry - a market built on change and innovation. I believe today, as I believed then, that when intellect and drive are combined with the ideals of focus and innovation, great strides can be made to propel the industry beyond adversity - beyond the financial issues currently facing the global market.

Game changing innovation combined with a drive to change the industry is the foundation of Santaris Pharma A/S, a company with the potential to deliver on the promise associated with RNA medicines, today. Santaris Pharma A/S is well positioned to benefit from Big Pharma's ongoing efforts to externalize a significant part of its drug discovery and development efforts and engage in partnering activities that provide access to cutting-edge new technologies and innovative drug candidates.

The unique and proprietary Locked Nucleic Acid (LNA) Drug Platform and Drug Discovery Engine developed by Santaris Pharma A/S are proving to be an effective and efficient approach to developing RNA-targeted therapeutics. Santaris Pharma A/S has secured strong patent protection of all its clinical and preclinical product candidates as well as for its LNA Drug Platform technology.

The LNA Drug Platform offers access to clinical pathways that have been previously inaccessible. The potential of the LNA Drug Platform and Drug Discovery Engine is evidenced by the number of drugs currently under development and the impressive roster of strategic partners. In fact, 2009 saw the addition of two important new collaborations for Santaris Pharma A/S: Wyeth Pharmaceuticals, which is now part of Pfizer, and Shire plc.

Santaris Pharma A/S, using the LNA Drug Platform, is the only company to have advanced both mRNA and microRNA targeted drugs into clinical trials, reinforcing the strength and utility of the platform. In fact, in December 2009 SPC3649, the world's first microRNA-targeted drug to enter the clinic, was the subject of an exciting publication in Science detailing the results of a proof-of-concept study in chimpanzees demonstrating the potential of this compound for the treatment of Hepatitis C.