World Leader in Alpha-pharmaceuticals A new class of drugs for cancer patients

Carnegie Healthcare Seminar March 2012

Andrew Kay, CEO

2012 Presentation

1203 v3

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Disclaimer

THIS PRESENTATION AND ITS APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE “PRESENTATION”) HAS BEEN PREPARED BY ALGETA ASA (THE “COMPANY”) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED BY, OR REGISTERED WITH, ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS, INVESTMENT AND TAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE. TO THE BEST KNOWLEDGE OF THE COMPANY, THE INFORMATION CONTAINED IN THIS PRESENTATION IS IN ALL MATERIAL RESPECTS IN ACCORDANCE WITH THE FACTS AS OF THE DATE HEREOF, AND CONTAINS NO MATERIAL OMISSIONS LIKELY TO AFFECT ITS IMPORT. HOWEVER, NO REPRESENTATION OR WARRANTY (EXPRESS OR IMPLIED) IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, ANY INFORMATION, INCLUDING PROJECTIONS, ESTIMATES, TARGETS AND OPINIONS, CONTAINED HEREIN, AND NO LIABILITY WHATSOEVER IS ACCEPTED AS TO ANY ERRORS, OMISSIONS OR MISSTATEMENTS CONTAINED HEREIN, AND, ACCORDINGLY, NONE OF THE COMPANY OR ANY OF ITS SUBSIDIARY UNDERTAKINGS OR ANY SUCH PERSON’S DIRECTORS, OFFICERS OR EMPLOYEES ACCEPTS ANY LIABILITY WHATSOEVER ARISING DIRECTLY OR INDIRECTLY FROM THE USE OF THIS PRESENTATION. THERE MAY HAVE BEEN CHANGES IN MATTERS THAT AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. THE DELIVERY OF THIS PRESENTATION SHALL NOT UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOT SINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY INFORMATION INCLUDED IN THIS PRESENTATION EXCEPT AS REQUIRED BY OSLO STOCK EXCHANGE RULES AND REGULATIONS OR APPLICABLE LAW.

THIS PRESENTATION INCLUDES CERTAIN FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY OR ASSUMPTIONS BASED ON THE INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS REFLECT CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CANNOT GIVE ANY ASSURANCE TO THE CORRECTNESS OF SUCH INFORMATION AND STATEMENTS. THESE FORWARD-LOOKING INFORMATION AND STATEMENTS CAN BE IDENTIFIED BY THE FACT THAT THEY DO NOT RELATE ONLY TO HISTORICAL OR CURRENT FACTS. FORWARD-LOOKING STATEMENTS SOMETIMES USE WORDS SUCH AS "AIM", "ANTICIPATE", "EXPECT", "ESTIMATE", "PLAN", "MILESTONE", "BELIEVE", OR OTHER WORDS OF SIMILAR MEANING. EXAMPLES OF FORWARD-LOOKING STATEMENTS INCLUDE, AMONG OTHERS, STATEMENTS REGARDING OR WHICH MAKE ASSUMPTIONS IN RESPECT OF THE DEVELOPMENT OF ALPHARADIN AND ALGETA'S OTHER PRODUCTS, THE ONGOING EXPANSION OF THE ALPHARADIN PRODUCTION FACILITY AT IFE, THE QUANTITIES OF RADIUM-223 THAT THE IFE FACILITY WILL BE ABLE TO PRODUCE ONCE THE EXPANSION IS COMPLETED, THE ANTICIPATED MARKET DEMANDS FOR ALPHARADIN AND ALGETA'S OTHER PRODUCTS, THE RESULTS OF ONGOING CLINICAL TRIALS AND ALGETA'S STATED KEY ACTIVITIES AND MILESTONES FOR THE NEXT 12 MONTHS, INCLUDING REGULATORY FILINGS, AS WELL AS REGULATORY APPROVALS OF ALPHARADIN AND ALGETA'S OTHER PRODUCTS. BY THEIR NATURE, FORWARD-LOOKING INFORMATION AND STATEMENTS INVOLVE RISK AND UNCERTAINTY, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY THE FORWARD-LOOKING INFORMATION AND STATEMENTS IN THIS REPORT, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE SUCCESS OF FUTURE CLINICAL TRIALS, COLLABORATIONS WITH OTHER COMPANIES IN THE DEVELOPMENT OF TARGETING MOLECULES AND ALPHA PARTICLE PAYLOADS AND OTHER STRATEGIC TRANSACTIONS, THE IMPACT OF COMPETITION, OUR ABILITY TO PROTECT OUR INTELLECTUAL PROPERTY, OUR ABILITY TO SUCCESSFULLY COMMERCIALIZE ALPHARADIN AND OUR OTHER PRODUCTS, MANUFACTURING CAPACITY, THE POLICIES AND ACTIONS OF GOVERNMENTAL AND REGULATORY AUTHORITIES, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS REPORT. ANY FORWARD-LOOKING INFORMATION OR STATEMENTS IN THIS REPORT SPEAK ONLY AS OF THE DATE THEY ARE MADE. EXCEPT AS REQUIRED BY THE OSLO STOCK EXCHANGE RULES OR APPLICABLE LAW, THE COMPANY DOES NOT INTEND, AND EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS REPORT, INCLUDING FORWARD-LOOKING INFORMATION AND STATEMENTS, TO REFLECT CHANGES IN THE COMPANY'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGES IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY STATEMENT IN THIS REPORT IS BASED.

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A New Class of Targeted Cancer Therapeutics

Alpha-pharmaceuticals

– Potent tumor cell killing

– No known resistance

– Highly localized activity of alpha emission

– Minimal damage to surrounding normal tissue

Alpharadin: Success in phase III

– Overall survival increased by 44%

– Significant SRE benefits, incl. spinal cord compression

– Well tolerated

– Filing target mid 2012 USA and EU

– Expanded Access Program initiated in the USA

Thorium TTCs*: Preclinical progress

Radium-223 (Alpharadin) Naturally targets bone metastases

First in new class of Alpha-pharmaceuticals

Thorium-227 (TTCs) Conjugated to tumor-targeting molecules Potential for multiple cancer indications

Alpharadin injection every 4 weeks

* Targeted Thorium Conjugates

4 1 CRPC – Castration Resistant Prostate Cancer * Refs: Mundy, Nat Rev Cancer (2002) 2:584-593; NEJM editorial May 2011; Halabi, Journal of Clinical Oncology (2003) 21: 1232-1237

Develop in up to 90% of CRPC1 and up to 80% of breast cancer patients

Bone metastases represent a significant unmet medical need:

– Ultimately lead to patient death in CRPC*

– Cause pathological fractures and spinal cord compression

– Patients will continue to progress, despite earlier-stage therapies

– No survival benefit from current bone-targeted agents

Bone Metastases: A Significant Unmet Medical Need

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Alpharadin (radium-223 in solution) acts as a calcium mimic

– Naturally targets new bone growth in and around bone metastases

Targets new bone in metastases Highly localized tumor cell killing

Bone marrow Tumor

cells

Osteoclast

Osteoblast

Newly formed

bone

Radium-223 deposition

Alpha particle radiation

Alpha particles induce double-strand DNA breaks in adjacent tumor cells

– Short penetration of alpha emitters (2-10 cell diameters) means highly localized tumor cell killing & minimal damage to surrounding normal tissue

Alpharadin is cleared rapidly into small intestine

Alpharadin: Highly Targeted to Bone Metastases

Alpharadin is a new class Alpha-pharmaceutical

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• Ready to use vials

• Long shelf life (4 wks)

• Easy to handle

• Total 6 i.v. injections

• One injection every 4 weeks

• Out-patient treatment

Alpharadin: Easy and Convenient to Administer

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Successful Phase III Data from 2011 EMCC1

In CRPC patients with bone metastases:

Alpharadin significantly prolonged overall survival

– P value = 0.00185; HR = 0.695; 95% CI, 0.552-0.875

Alpharadin significantly prolonged time to first SRE2

– P value = 0.00046; HR = 0.610; 95% CI, 0.461-0.807

Alpharadin was very well tolerated

Radium-223 [Alpharadin], a novel Alpha-pharmaceutical, may provide a new standard of care for the treatment of

CRPC patients with bone metastases

1 As presented by Dr Chris Parker, 24th September 2011 at the Presidential Session featuring Best and Late-Breaking Abstracts at 2011 European Multidisciplinary Cancer Congress, Abstract No.1LBA 2 SREs: Skeletal Related Event

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Increase in median overall survival of 3.6 months

14.9 months Alpharadin vs. 11.3 months placebo

The hazard ratio was unchanged; p-value improved

The updated analysis (n=921) confirmed the overall efficacy results of the pre-planned interim analysis from June 2011

Updated ALSYMPCA Survival Analysis

Further, detailed data will be presented at upcoming medical meetings

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Spinal Cord Compression is an Oncological Emergency

Radiation for bone pain

Pathological fracture

Spinal cord compression

Surgery to bone

Image adapted from Quraishi & Esler BMJ 2011;342:d2402

Spinal cord compression can be devastating for patients as it can cause paralysis, as well as bladder and bowel dysfunction

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ALSYMPCA Time to First SRE Component

No. (%) of Patients Time to First Event

(Radium-223 vs. Placebo)

SRE Component Radium- 223

(n=541) Placebo (n=268) P value*

HR (95%CI)

External Beam Radiotherapy

122 (23%) 72 (27%) 0.0038 0.65 (0.48-0.87)

Spinal Cord Compression

17 (3%) 16 (6%) 0.016 0.44 (0.22-0.88)

Pathologic Bone Fracture

20 (4%) 18 (7%) 0.013 0.45 (0.24-0.86)

Surgical Intervention

9 (2%) 5 (2%) 0.69 0.80 (0.27-2.4)

* Not adjusted for multiplicity. Sartor, ASCO GU 2012 Poster Presentation. Abstract 9

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Vaccines Improved Survival

Androgen Synthesis Inhibitors / Androgen Receptor Antagonists

Improved Survival, Biomarkers1

Alpha-pharmaceuticals Improved Survival, Biomarkers1, SRE Benefits

Chemotherapy

Low-volume metastases

(minimal or no symptoms)

Progressive symptomatic metastases

High-volume symptomatic metastases

1 Including, for example, levels of PSA & ALP and time to PSA & ALP progression * Reported in Oncology Times, 1 February 2012

Evolving CRPC 5-year Treatment Landscape

“It is very plausible for us to hypothesize that combinations or sequences of these agents may add even more value” (Oliver Sartor, ASCO GU, 2012*)

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Algeta US: The Route to Commercialisation

Algeta building US operations ahead of Alpharadin launch

– Intends to exercise co-promotion option

– Working closely with Bayer to develop plan to maximize Alpharadin launch

– Optimize field force: Sales, MSLs, Market Access supporting urologists/medical oncologists/radiation oncologists/nuclear medicine

– Medical, Marketing, Market Access and Corporate Infrastructure

Algeta US established; key recruits already on board

– Jeff Albers: President, Algeta US; previously Genzyme Oncology

– Philina Lee: Director, US Marketing; previously Jevtana global product manager

Senior Management: Marketing, Medical and

Market Access

Functional Support: Medical/MSL, Marketing, Operations, Corporate,

Sales Director

Field personnel: Sales Representatives,

Managed Markets, Nurses

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Algeta responsible for exclusive worldwide supply of Alpharadin

– Bayer will distribute product worldwide

New commercial facility at IFE (Kjeller, Norway)

– New facility buildings completed; all equipment delivered

New Commercial Production Facility

Next steps: 1) Complete installation 2) Qualification 3) Production of regulatory batches

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Significantly reduced bone alkaline phosphatase (bALP)

– Indicates reduction in osteoblastic activity

Significantly reduced urine N-telopeptide (uNTX)

– Indicates reduction in osteoclastic activity

Exploratory analyses show reduction in FDG uptake

– Indicates reduction in tumor metabolic activity

Bone Metastases in Breast Cancer; BC1-09 Results*

Baseline

FDG-PET

Week 8 Baseline

Fused PET-CT

Week 8

* Coleman et al (2011) SABCS poster number P4-16-04, abstract 41.035 ** FDG-PET: Positron Emission Tomography using fluorodeoxyglucose (18F) shows the tumor tissue metabolic activity, as opposed to new bone formation associated with bone tumors in 99mTc bone scans

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Improvement in Overall Survival in Symptomatic CRPC patients

– Updated analysis: 3.6 months benefit vs standard of care – Interim analysis: HR 0.695, p = 0.00185

Delay to Skeletal-Related Events

– Significant delay to first SRE by 5.1 months – First ever evidence of delay to Spinal Cord Compression

Demonstrable effect on Physician-Monitored Biomarkers

– Significant delay to time to Total ALP and PSA progression – Significant improvement in ALP reduction and ALP normalization

Well tolerated side-effect profile; reduction in pain

– Fewer AEs, SAEs, Grade 3/4 AEs and discontinuations than placebo – BC1-03 trial revealed significant (up to 71%) reduction in pain

Elegant, Mechanistic and Predictable mode of action

– Naturally targets bone metastatic micro-environment – Potential combination or sequence with systemic therapies

Alpharadin: A Compelling Profile

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Leveraging world-leading expertise and IP around use of alpha-emitters

Strategy to develop Targeted Thorium-227 Conjugates (TTCs)

– In-licensing to create proprietary tumor-targeting molecules

– Collaborations to develop targeting molecules with Thorium payloads

– Potential advantages of Delivery, Potency, no known Resistance

Monoclonal antibody

(mAb)

Thorium – Alpha-emitting

pharmaceutical

Cancer cell

Thorium conjugated to tumor-targeting antibodies

Black tracks show alpha particles from thorium-227 taken to breast cancer cell by antibody

Broadening our Alpha-pharmaceutical Portfolio

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Significant Progress – Thorium Platform

Dr. Lars Abrahmsén appointed as Senior VP, Protein Therapeutics

Production and purification of thorium-227 automated for pre-clinical research

High-performance chelators for conjugation to targeting molecules developed

Genzyme collaboration Thorium conjugation to novel antibody

– Validation of payload technology – Algeta to conjugate thorium to Genzyme antibody – Initial 12 month pre-clinical program, signed April 2011

Exclusive worldwide licenses for targeting molecules

– HER-2 (breast cancer) & PDGFRβ (angiogenesis) targets – Algeta progressing pre-clinical research of TTCs

Affibody in-license

Algeta expects both to advance its current projects and to identify additional project opportunities in 2012, and anticipates starting a clinical

study of a TTC platform product during 2014

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In-house development and external sourcing to drive TTC platform – Targeted business development activities – Rigorous scientific and commercial due diligence process

Goal: One Targeted Thorium Conjugate in clinical trials in 2014

Genzyme

Affibody

Additional Opportunities

Undisclosed

HER-2

PDGFR-β

Bu

sin

ess D

evelo

pm

en

t screen

A

B

C

D

E ...

Clinical Candidate

Pre-Clinical

Driving Thorium towards Clinical Trials

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Operations

Cash NOK 317m (USD 55m) at 31 December 2011 - augmented by over-subscribed equity raise

Net cash burn1 NOK 166m (USD 29m) 1Q11 – 4Q11 Excluding milestone payments

Annual opex2 NOK 289m (USD 50m) 1Q11 – 4Q11

2011 FY guidance

Opex NOK 270-295m NOK 289m (277m) actual Capex NOK 130-150m NOK 135m actual

Financial Summary

Note: Exchange rate USD/NOK: 5.809 (3 Feb 2012) 1 Difference in cash adjusted for milestone payments

2 Defined as the sum of External R&D expenses, Payroll and related costs, Depreciation and General and administrative expenses; excludes currency effects and interest income

The Algeta share OSE: ALGETA

Daily liquidity

NOK 33m (USD 6m) last three months avg.

Market cap ~NOK 6.4bn (USD 1.1bn)

Number of shares 42.5m (plus 1.9m options)

Analyst coverage ABGSC, Carnegie, Credit Suisse, Danske, DNB, Edison, Jefferies, JP Morgan, Pareto, SpareBank 1, Terra

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Summary Newsflow / Events in 2012

Alpharadin: The Path to Approval

– Manufacturing facility completion (1H 2012)

– Regulatory batch production (1H 2012)

– Board decision on US co-promotion (before filing)

– Submission to US FDA and EU EMA (mid 2012)

Alpharadin: Clinical Development

– Presentation of clinical data at major cancer meetings (incl. ASCO)

– Safety data from Phase I/IIa BC1-10 docetaxel combo trial (1H 2012)

– Development update (timelines and trials) from Bayer

– Publication of ALSYMPCA and BC1-09 trials in peer-reviewed journals

Targeted Thorium Conjugates

– Assessment of in-licensing opportunities for targeting molecules

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Algeta is now well placed to achieve its goal of becoming a world class oncology company with a US commercial presence

and a specialized R&D capability

Filing for Regulatory Approval in mid 2012

‒ Bayer agrees with “blockbuster” potential in bone metastases

Further presentations at major medical congresses

‒ Increased physician awareness, especially in the US

Accelerate and optimise Commercial Operations

‒ Additional high-level appointments; establish HQ

‒ Board decision on co-promotion option

Significant cash on hand (NOK 317m / USD 55m)

‒ Augmented by recent over-subscribed financing

‒ Entitled to EUR 50m milestone from Bayer on first filing

Alpharadin

ALSYMPCA

Finance

Algeta US

2012 – A Busy and Exciting Year

Algeta ASA: Mike Booth Communications & Corporate Affairs International media enquiries: Mark Swallow Citigate Dewe Rogerson US investor enquiries: Jessica Lloyd The Trout Group

For further information, please contact:

+47 2202 4510 ir@algeta.com +44 207 638 9571 mark.swallow@citigatedr.co.uk +1 646 378 2928 jlloyd@troutgroup.com