Grifols : opens new lines of research with the acquisition of a 44% stake in GigaGen Download (400.1 Kb)

• GigaGen is a pre-clinical biotherapeutics company based in San Francisco that uses human B cells 1 to capture the genetic diversity of antibodies and transform them into therapies to treat severe diseases
• GigaGen researches and develops novel recombinant monoclonal and polyclonal antibody therapies
• Grifols will invest an additional USD 15 million to finance GigaGen's research on recombinant polyclonal immunoglobulin drug products derived from human B cells for the treatment of human diseases

GigaGen focuses its activity on discovering new biological treatments by using antibodies derived from millions of cells within immune repertoires. Among other applications, its innovative technological platform enables identifying and analyzing the genetic diversity of B cells to convert them into polyclonal recombinant antibodies (biotherapeutics) that improve outcomes for patients with severe diseases.

GigaGen currently has several projects under way in collaboration with various pharmaceutical companies aimed at discovering new treatments. The company also heads a range of in-house research projects, including the development of world's first recombinant intravenous immunoglobulin and a diverse portfolio of immuno-oncology therapies.

The transaction has been carried out through Grifols Innovation and New Technologies Limited (GIANT), which oversees all of the company's external R&D+i investments.

In addition, Grifols and GigaGen have entered into a research and collaboration agreement whereby, in exchange of a collaboration fee of USD 15 million in the aggregate, GigaGen will commit to carry out research activities to develop recombinant polyclonal immunoglobulin therapies derived from human B cells for the treatment of human diseases.

1 Type of white blood cell that makes antibodies. B cells are part of the immune system and develop from stem cells in the bone marrow. They are also known as B-lymphocytes.

This transaction allows Grifols to further strengthen its R&D+i portfolio by acquiring holdings in research projects and companies that complement its activity and hold the potential of generating high added value for the Group.

This agreement provides further evidence that Grifols' longstanding commitment to research, development and innovation goes beyond internal resources. Grifols has developed a comprehensive approach through internal investments in its own projects and external investments in investee companies like Albajuna, Alkahest, Araclon, Aradigm, Grifols Kiro Robotics and Singulex. This approach also comprises on-going collaborations in the scientific and research fields.

Taking into account internal and external net investments, as well as the acquisition of equity stakes in research companies, Grifols allocated Euros 294.3 million toward R&D+i initiatives in 2016, including Euros 219.9 million for internal net investments.

About GigaGen

GigaGen is a biopharmaceutical company that develops novel antibody therapies derived from immune repertoires. GigaGen's technology platform captures the genetic make-up of entire immune repertoires, genetically analyzing B cells at a rate of millions per hour, while simultaneously identifying their antigen and protein binders.

GigaGen has drug discovery projects with several pharmaceutical companies in addition to its own pipeline for development of the first recombinant intravenous immunoglobulin (IVIG) and immuno-oncology therapies. For more information visit www.gigagen.com

About Grifols

Grifols is a global healthcare company founded in 1940. Grifols has over 75 years improving people's health and wellbeing through the development of life-saving plasma medicines, diagnostics systems, and hospital pharmacy products.

The company is present in more than 100 countries worldwide and is headquartered in Barcelona, Spain. Grifols is a leader in plasma collection with a network of close to 180 plasma donor centers in the U.S., and a leading producer of plasma-derived biological medicines. The company also provides a comprehensive range of transfusion medicine, hemostasis, and immunoassay solutions for clinical laboratories, blood banks and transfusion centers, and is a recognized leader in transfusion medicine.

In 2016, sales exceeded 4,000 million euros with a headcount close to 15,000 employees. Grifols demonstrates its commitment to advancing healthcare by allocating a significant portion of its annual income to R&D. The company's class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE: GRF). Its non-voting class B shares are listed on the Mercado Continuo (MCE: GRF.P) and on the U.S. NASDAQ via ADRs (NASDAQ: GRFS). For more information visit www.grifols.com

The facts and figures contained in this report that do not refer to historical data are "future projections and assumptions". Words and expressions such as "believe", "hope", "anticipate", "predict", "expect", "intend", "should", "will seek to achieve", "it is estimated", "future" and similar expressions, in so far as they relate to the Grifols group, are used to identify future projections and assumptions. These expressions reflect the assumptions, hypotheses, expectations and predictions of the management team at the time of writing this report, and these are subject to a number of factors that mean that the actual results may be materially different. The future results of the Grifols group could be affected by events relating to its own activities, such as a

shortage of supplies of raw materials for the manufacture of its products, the appearance of competitor products on the market, or changes to the regulatory framework of the markets in which it operates, among others. At the date of compiling this report, the Grifols group has adopted the necessary measures to mitigate the potential impact of these events. Grifols, S.A. does not accept any obligation to publicly report, revise or update future projections or assumptions to adapt them to events or circumstances subsequent to the date of writing this report, except where expressly required by the applicable legislation. This document does not constitute an offer or invitation to buy or subscribe shares in accordance with the provisions of the following Spanish legislation: Royal Legislative Decree 4/2015, of 23 October, approving recast text of Securities Market Law; Royal Decree Law 5/2005, of 11 March and/or Royal Decree 1310/2005, of 4 November, and any regulations developing this legislation. In addition, this document does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. The information included in this document has not been verified nor reviewed by the external auditors of the Grifols Group.