To NASDAQ OMX Copenhagen A/S
Announcement no. 04-13 / Copenhagen, March 13, 2013

Today Topotarget announced the financial results for the year ended December 31, 2012.

Financial review
The annual report comprises the Parent Company Topotarget A/S and the four wholly-owned subsidiaries.

Unless otherwise stated, the financial review is based on the Group's consolidated financial information for the year ended December 31, 2012 as included in this annual report with comparative figures for the Group in 2011 in brackets.

A loss in continued operations of DKK 80.1 million (2011: Loss of DKK 29.0 million) was recorded for the year.

The Group's net cash and cash equivalents as of December 31, 2012 totaled DKK 41.5 million (2011: DKK 114.3 million) and the equity stood at DKK 251.2 million (2011: DKK 330.7 million).

Management believes that Topotarget has adequate financial resources to cover its operations in 2013. This is based, among other things, on the following significant factors:

• Spectrum Pharmaceuticals is, by mid-2013, expected to file an NDA with the FDA

• Should Spectrum Pharmaceuticals fail to file an NDA, management will be able to adjust its cost base to maintain operations

• The existing authority to carry out a directed share issue could be exercised

For assumptions and estimates, please refer to Note 2 in the financial statements.

Consolidated income statement
Topotarget recognized revenues of DKK 2.4 million in 2012 (2011: 65.6 million, which was primarily composed of income from Spectrum Pharmaceuticals' upfront payment of USD 30 million). Revenues are primarily composed of income as per our collaboration agreement with our US partner, Spectrum Pharmaceuticals.  Topotarget has furthermore entered into a license agreement with Oncology Venture ApS for patents, intellectual property rights, and knowhow related to APO010.

Production costs, which amounted to DKK 1.4 million (2011: DKK 1.8 million), include Topotarget personnel costs related to the agreement with our US partner.

Research and development costs were DKK 46.5 million (2011: DKK 54.3 million). DKK 6.0 in shared development cost has been expensed until the cost split has been confirmed. The reduction in cost of 14% is primarily due to reductions in the number of employees, the hereto related costs, and the near completion of most studies. The finalization of data and study reports is on-going.

Administrative expenses were DKK 34.7 million (2011: DKK 40.8 million). The decrease in cost of 15% is primarily related to a reduction in the number of employees and the hereto related costs.

The net financials showed a net expense of DKK 1.2 million (2011: Net income of DKK 1.1 million). The financial expense is mainly caused by exchange rate fluctuations.

The tax income was DKK 1.2 million (2011: 1.2 million) and relates to the payment of tax value of losses from spending in research and development.

Net profit from discontinued operations amounted to DKK 0.1 million (2011: Loss of 4.0 million). The profit from discontinued operations consists of all revenue and costs relating to the sales of Totect®/Savene®.

Topotarget recorded a net loss of DKK 80.0 million in 2012 (2011: DKK 33.0 million).

Consolidated balance sheet
Total assets amounted to DKK 278.9 million (2011: DKK 370.5 million), which primarily consist of acquired research and development projects and cash and cash equivalents, while the Group's liabilities mainly comprise equity and trade payables.

Cash and cash equivalents were DKK 41.5 million (2011: DKK 114.3 million).

Non-current liabilities are reduced to 3.2 million (2011: DKK 13.6 million). The reason for the large reduction is the reclassification of the potential CuraGen milestone payment from non-current liabilities to current liabilities.

Current liabilities have been reduced to DKK 24.5 million (2011: DKK 26.2 million) despite the reclassification of the potential CuraGen milestone payment from noncurrent liabilities to current liabilities.

Consolidated equity
Equity amounted to DKK 251.2 million (2011: DKK 330.7 million). The change in equity consists of the loss for the year of DKK 80.0 million and a share-based payment of DKK 0.5 million.

Consolidated cash flow
Topotarget's cash flow from operating activities for 2012 was an outflow of DKK 80.9 million (2011: Outflow of DKK 88.8 million). The Group's 2012 cash flow from investing activities excluding the buying and selling of securities was DKK 8.1 million (2011: Outflow of DKK 1.9 million). The Group's cash flow from financing activities was DKK 0.0 million (2011: Inflow of DKK 0.0 million).

Comparing the actual financial performance with financial guidance
The Group recorded a loss in continued operations of DKK 80.1 million. The financial performance is in line with our guidance announced at the annual general meeting on April 11, 2012.

Outlook
It is crucial for our expectations for 2013 that our US partner successfully files an NDA with the FDA. Topotarget expects a milestone payment from Spectrum Pharmaceuticals of one million shares of common stock and a double digit million USD cash payment during H2 2013, which will result in an estimated pre-tax profit in the range of DKK 74-79 million for the full year financial result of 2013. The expected net cash and cash equivalents will be around DKK 109-114 million at year-end 2013.

Parent Company financial statements
The Parent Company recorded a loss of DKK 80.0 million (2011: DKK 33.0 million). The Parent Company's equity amounted to DKK 251.2 million (2011: DKK 330.7 million). The change in equity consists of the loss for the year of DKK 80.0 million and a share-based payment of DKK 0.5 million.

Treatment of loss
The Board of Directors proposes that the loss for the year be carried forward to next year.


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