Notice of annual general meeting in Swedish Orphan Biovitrum AB (publ)

STOCKHOLM, Sweden, April 3, 2014 (GLOBE NEWSWIRE) -- The shareholders in Swedish Orphan Biovitrum AB (publ), Reg. No. 556038-9321, are hereby summoned to the annual general meeting (the "Meeting"), to be held on Thursday 8 May 2014 at 4.00 p.m. in Wallenbergsalen, at Kungliga Ingenjörsvetenskapsakademien (IVA), Grev Turegatan 16, Stockholm, Sweden.

Participation, etc

Shareholders who wish to attend the Meeting must be recorded in the share register maintained by Euroclear Sweden AB (the Swedish Central Securities Depository) on Friday 2 May 2014, and must notify the company of their intention to participate in the Meeting not later than on Friday 2 May 2014 at Swedish Orphan Biovitrum's web site www.sobi.com, by mail to Swedish Orphan Biovitrum AB (publ), "Annual General Meeting", SE-112 76 Stockholm, Sweden or by phone no. +46 8 697 34 27. The notification shall set forth the name, address, telephone number (daytime), personal/corporate identity number, the number of shares held and, when applicable, information about representatives and assistants.

As per the day of this notice there are 270,389,770 shares outstanding in the company. All shares are common shares representing one vote each. The total number of votes is accordingly 270,389,770. The company holds 4,688,948 own shares, which cannot be represented at the general meeting.

Nominee shares

Shareholders, whose shares have been registered in the name of a nominee through the trust department of a bank or similar institution, must, in order to be able to participate in the Meeting, re-register their shares in their own names in the shareholders' register maintained by Euroclear Sweden AB as per Friday 2 May 2014. Shareholders who wish to re-register their shares in their own name should inform their nominee of such re-registration well in advance of such date. Such registration may be temporary.

Proxy, etc

Shareholders represented by proxy shall issue a written and dated power of attorney for the proxy. If the power of attorney is issued on behalf of a legal entity, a certified copy of a registration certificate for the legal entity shall be appended. The power of attorney is valid for one year from the issue thereof or such longer period of time stated in the power of attorney, however not more than five years. A registration certificate shall evidence the circumstances prevailing at the day of the Meeting and should not be older than one year at the time of the Meeting.

The power of attorney in original and, when applicable, the registration certificate, should be submitted to the company by mail at the address indicated above well before the Meeting. A proxy form is held available at the company's web site, www.sobi.com,  and will also be sent to shareholders who so request and who inform the company of their postal address.

Proposed agenda

1. Opening of the Meeting.  
2. Election of the chairman of the Meeting.  
3. Preparation and approval of the voting list.  
4. Approval of the agenda.  
5. Election of one or several persons to verify the minutes.  
6. Determination of whether the Meeting has been duly convened.  
7. Presentation of the annual report and the auditor's report as well as the consolidated accounts and the auditor's report for the group.  
8. Speech by the managing director.  
9. Presentation of the work performed by the Board of Directors and its committees.  
10. Resolution regarding adoption of the income statement and the balance sheet as well as the consolidated income statement and the consolidated balance sheet.  
11. Resolution regarding appropriation of the company's profit or loss in accordance with the adopted balance sheet.  
12. Resolution regarding discharge of the members of the Board of Directors and the managing director from liability.  
13. Determination of fees to be paid to the members of the Board of Directors and to the auditor.  
14. Determination of the number of directors and deputy directors and auditors and deputy auditors.  
15. Election of the chairman, the members of the Board of Directors and the auditor.  
16. Resolution regarding guidelines for remuneration for the management.  
17. Resolution regarding (A) the implementation of a long-term incentive program and (B) hedging arrangements in respect thereof.  
18. Resolution regarding transfer of own shares.  
19. Closing of the Meeting.  

Proposal regarding chairman of the Meeting, fees for the members of the Board of Directors and the auditor, the number of members of the Board of Directors, deputy members, auditors and deputy auditors as well as election of the chairman, the members of the Board of Directors and the auditor (items 2, 13, 14 and 15)

The nomination committee of Swedish Orphan Biovitrum AB (publ), which consists of Bo Jesper Hansen (chairman of the Board of Directors), Petra Hedengran, chairman (Investor), Roger Johanson (Skandia Liv) and Åsa Nisell (Swedbank Robur Fonder) proposes:

• that Klaes Edhall from Mannheimer Swartling Advokatbyrå is elected chairman of the Meeting,
• that fees to be paid to the Board of Directors should total SEK 2,630,000 to be allocated with SEK 310,000 to each board member except for the chairman of the Board of Directors who shall not receive any fee for his board assignment, nor any fee for his committee work, that fees for work in the audit committee should be SEK 100,000 to the chairman and SEK 60,000 to each other member of such committee, that fees for work in the compensation & benefit committee should be SEK 60,000 to the chairman and SEK 30,000 to each other member of such committee and that fees for work in the science committee should be SEK 60,000 to the chairman and SEK 30,000 to each other member of such committee,
• that, in addition to the fees proposed above, for each physical meeting of the Board of Directors held in Sweden, a meeting fee of SEK 10,000 is paid to the members of the Board of Directors that reside in Europe outside the Nordic countries and a meeting fee of SEK 20,000 is paid to the members of the Board of Directors that reside outside Europe,
• that the fees to the auditor should be paid in accordance with normal standards and approved invoice,
• that eight ordinary board members without deputies should be appointed,
• that one auditor without any deputy auditor should be appointed,
• that the ordinary members of the Board of Directors Adine Grate Axén, Matthew Gantz, Bo Jesper Hansen, Lennart Johansson, Helena Saxon, Hans GCP Schikan and Hans Wigzell should be re-elected as members of the Board of Directors, that Annette Clancy should be elected as a new member of the Board of Directors and that Bo Jesper Hansen should be re-elected chairman of the Board of Directors, and
• that Ernst & Young be elected auditor of the company until the end of the annual general meeting 2015.

Annette Clancy

Annette Clancy was born 1954 and has a BSc Hons Pharmacology, from Bath University UK. She is Chairman as well as Non-Executive Director of the Board in Genable Technologies. Ms. Clancy has over 30 years of experience in the Pharmaceutical/Biopharm Industry, working in a variety of functions (R&D, Commercial, Worldwide Business Development) in the US and UK.

Ms. Clancy was Head of Transactions and Alliance Management at GlaxoSmithKline (GSK) where she was responsible for executing major transactions ranging from early drug discovery partnerships, to global commercial alliances and Mergers and Acquisitions.

Since her retirement from GSK in 2008, Ms. Clancy has been appointed as Non-Executive Board Director to Silence Therapeutics plc. (2008-2012) and Clavis Pharma in Norway (2010-2013). Ms. Clancy also currently serves as Senior European Advisor to the Biopharmaceutical Team of Frazier Healthcare Ventures, for whom she provides strategic advice on both new and existing investments.

Annette Clancy does not hold any shares or options in the company. She is independent in relation to the company and its management and in relation to the company's principal shareholders.

The nomination committee recommends the elected board members to build their own holdings of shares in the company

The nomination committee recommends the Board of Directors of Swedish Orphan Biovitrum to establish a shareholding policy pursuant to which the members of the Board of Directors, that do not already have such holding, are expected to, over a five year period, acquire an ownership in Swedish Orphan Biovitrum shares with a market value which is expected to correspond to at least one year board remuneration, before taxes, excluding remuneration for committee work.

Proposal regarding appropriation of the company's profit or loss in accordance with the adopted balance sheet (item 11)

The Board of Directors proposes that the company's retained profits are carried forward.

Proposal regarding guidelines for remuneration for the management (item 16)

The Board of Directors proposes that the annual general meeting resolves to approve the Board of Directors' proposal regarding guidelines for remuneration for the management as set forth below which shall apply until the annual general meeting 2015. In this context, the management means the managing director of Swedish Orphan Biovitrum and the executives who, from time to time, are reporting to him and who are also members of the senior management, as well as members of the Board of Directors to the extent employment or consulting agreements are entered into.

Motives

Swedish Orphan Biovitrum shall offer a total remuneration in line with market conditions to enable the company to recruit and retain competent personnel. The remuneration to the management may consist of fixed salary, variable salary, pension and other compensation. Long-term incentive programs may be offered in addition to the above and will then be submitted to the general meeting for approval. The remuneration is mainly based on position, performance and the company's and the member's, respectively, performance in relation to objectives determined in advance.

Fixed salary

The fixed salary for the managing director and the other members of the management shall be in line with market conditions and mirror the demands and responsibility that the position entails. The fixed salary for the managing director and the other members of the management is revised once every year, as per 1 January.

To the extent a member of the Board of Directors carries out work for the company or for another group company, in addition to the board work, consulting fees and/or other remuneration for such work may be payable.

Variable salary

The variable salary for the managing director and the other members of the management shall be based on the company's fulfillment of objectives determined in advance. These objectives are determined for the promotion of the company's/the group's long-term development, value creation and financial growth and shall be designed in a way that does not encourage an excessive risk-taking. The variable salary may not amount to more than 50% of the annual gross salary (including pension) for the managing director and not more than 20 - 50% of the fixed annual salary (excluding pension, or in specific cases, including pension) for the other members of the management.

Long-term incentive programs

Long-term incentive programs may constitute a complement to the fixed salary and the variable salary. The program participants are nominated based on competence, performance and to retain key employees with the company. The outcome is dependent on the fulfillment of certain predetermined performance requirements. The aim with having long-term incentive programs shall be to create a long-term commitment to Swedish Orphan Biovitrum, to offer the participants to take part in Swedish Orphan Biovitrum's long-term success and value creation and to create possibilities to attract and retain members of the management and key employees. For more information on Swedish Orphan Biovitrum's current incentive programs, see Swedish Orphan Biovitrum's annual report 2013 note 14.

Other compensation and terms of employment

The pension benefits for the managing director and the other members of the management shall preferably consist of premium based pension plans, but may also be defined-benefit pursuant to collective agreements.

Fixed salary during notice periods and severance payment, including payments for any restrictions on competition, shall in aggregate not exceed an amount equivalent to the fixed salary for two years. The total severance payment shall for all members of the management be limited to the existing monthly salary for the remaining months up to the age of 65.

The managing director may, in case of a change of control of the company meaning that more than 50% of the shares in the company are owned by one shareholder, (i) be entitled to a retention bonus corresponding to maximum 6 monthly gross salaries (including pension) provided that notice of termination of the managing director's employment has not been given 6 months after the change of control, alternatively (ii) in case of a material change of the managing director's employment conditions, be entitled to terminate the employment with a right to severance payment in accordance with the above. Upon a material change in the business, other executives may (i) be entitled to a retention bonus corresponding to maximum 6 monthly fixed salaries (excluding pension, or in specific cases, including pension), provided that notice of termination of employment has not been given 6 months after such change, alternatively (ii) under certain circumstances, be entitled to terminate the employment with a right to severance payment, however, corresponding to maximum 12 monthly fixed salaries (excluding pension, or in specific cases, including pension), to be paid in addition to the salary during the notice period.

Other compensation may consist of other customary benefits, such as healthcare insurance, which shall not constitute a material portion of the total remuneration.

In addition thereto, additional compensation may be paid out in extraordinary circumstances, provided that such arrangement is made for management recruitment or retention purposes and is agreed on an individual basis. Such extraordinary arrangements may for example include a one-time cash payment, or a support package including relocation support, tax filing support, or similar.

Deviation from the guidelines

The Board of Directors may resolve to deviate from the guidelines if the Board of Directors, in an individual case, is of the opinion that there are special circumstances justifying that.

Proposal regarding (A) the implementation of a long-term incentive program and (B) hedging arrangements in respect thereof (item 17)

Background

The Board of Directors of Swedish Orphan Biovitrum AB (publ) ("Sobi") proposes that the annual general meeting 2014 resolves on the implementation of a long-term incentive program (the "Program"). The proposed Program gives all present and future permanent employees of the Sobi Group (excluding employees based in the U.S) the opportunity of becoming shareholders in Sobi. It is proposed that the Program be divided into two parts: (I) one part directed to executives and directors (the "Executive Program") and (II) one part directed to all other employees (the "All Employee Program").

The overall purpose of the Program is to closely align the employees' interests with those of the shareholders and to create a long-term commitment to Sobi. The Executive Program provides Sobi with a crucial component of a competitive total compensation package with which to attract and retain executives who are critical to Sobi's on-going success. The All Employee Program creates a motivating effect for the entire permanent workforce of the Sobi Group. For these reasons the Board of Directors considers that having recurring long-term incentive programs is a vital and important part of Sobi's total compensation program.

The Board of Directors of Sobi has evaluated the long-term incentive program resolved on by the 2013 annual general meeting and has concluded that both the Executive Program and the All Employee Program satisfy the intended purposes.

Similarly to the incentive program resolved on by the 2013 annual meeting, the Program shall be inspiring, achievable, easy to understand, cost effective to administrate, and easy to communicate. Following implementation of the Program, the Board of Directors intends to carry out an evaluation thereof in order to systematically analyse the achieved results in relation to the aim outlined above. The aim of the evaluation will be to determine whether the Program satisfies its purposes, and this will also include the review of the outcome and the costs for the Program.

A.   Implementation of the Program

The Board of Directors proposes that the annual general meeting 2014 resolves on the implementation of the Program in accordance with the principal terms and conditions set out below.

I.   Terms and conditions applying to the Executive Program

II.   Terms and conditions applying to the All Employee Program

 III.   Terms and conditions applying to both the Executive Program and the All   Employee Program

________________________

Costs for the Program etc.

The costs for the Program, which are charged in the profit and loss account, are calculated according to the accounting standard IFRS 2 and distributed on a linear basis over the vesting period. The calculation has been made based on the following assumptions: (i) a market price of the Sobi common share of SEK 72, (ii) no dividend is paid by Sobi during the Program and (iii) an assessment of future volatility in respect of the Sobi common share. In total, this can lead to maximum costs for the Program of approximately SEK 38.3 million, excluding social security costs. The costs for social security charges are calculated to approximately SEK 15.1 million assuming an annual share price increase of 10% during the Lock-up Period. In addition to what is set forth above, the maximum costs for the Program have been based on a share price of SEK 72 at the time of the program participant's own investment, that the Program comprises approximately 490 participants, that each program participant makes a maximum investment and based on historical employee turnover for the group of 5%. If the share price increases from SEK 72 with 10% until the implementation of the Program the effect on costs would only be marginal as the number of Matching and Performance Shares would be reduced correspondingly. Also in case of a decrease in the share price the effect on costs would be marginal. The expected annual costs, including social security charges, corresponds to approximately 3% of Sobi's total employee costs.
If the Program had been implemented in 2013, if the company had had costs in accordance with the example in the preceding paragraph, and Matching and Performance Shares had been allotted in 2013 in accordance with the assumptions in the sample calculation, which among other things assumes an annual share price increase of 10% during the Lock-up Period, the earnings per share for the financial year 2013 had decreased by SEK 0.05 to SEK -0.40 and the shareholders' equity per share for the financial year 2013 had decreased by SEK 0.09 to SEK 17.54.

Dilution

Upon full allotment of Matching Shares and Performance Shares, the number of shares under the Program amounts to 1,100,235 common shares in Sobi, corresponding to a dilution effect of approximately 0.41% of the share capital and the votes. Aggregated with the 345,694 shares that may be transferred in order to cover the cash flow effects associated with the Program, primarily social security charges, the maximum dilution effect of the Program amounts to 0.53%. If all outstanding long-term incentive programs are included in the calculation, then the corresponding maximum level of dilution amounts to 1.87%.

Hedging arrangements

The Board of Directors proposes that the annual general meeting, as a main alternative, resolves (i) on a directed issue of redeemable and convertible series C shares and (ii) to authorize the Board of Directors to resolve on the repurchase of all issued redeemable and convertible series C shares. Following conversion to common shares in Sobi, the shares are intended to be transferred to program participants as well as transferred on a regulated market in order to cover the cash flow effects associated with the Program, primarily social security charges. For this purpose, the Board of Directors further proposes that the annual general meeting resolves (iii) on transfers of own common shares free of charge to program participants. As further described in item B.1(iii) below, the Board of Directors proposes that shares acquired for the purpose of securing Sobi's obligations under previous share programs also may be transferred under the Program. The detailed conditions for the Board of Directors' main alternative are set out in item B.1 below.

Since the Program, in principle, is not expected to give rise to any initial social security payments for the Sobi Group, the Board of Directors has decided not to propose to the annual general meeting 2014 to resolve on transfers of own common shares on a regulated market in order to cover such payments. However, prior to the transfers of common shares to program participants, the Board of Directors intends to propose to the annual general meeting 2017 that transfers be made of own common shares on a regulated market in order to cover above mentioned costs.
Should the majority required under item B.1 below not be reached, the Board of Directors proposes that Sobi shall be able to enter into an equity swap agreement with a third party, in accordance with item B.2 below.

Preparations of the proposal

The Compensation & Benefits Committee of Sobi has prepared guidelines for the proposed Program. These guidelines have been presented for and adopted by the Board of Directors.

_______________________

B.   Hedging arrangements in respect of the Program

B.1   Directed issue of redeemable and convertible series C shares, authorization for the Board of Directors to resolve to repurchase all issued redeemable and convertible series C shares and transfers of own common shares to program participants

(i)        Resolution on a directed issue of redeemable and convertible series C shares

Increase of Sobi's share capital by no more than SEK 217,385 through an issue of no more than 396,180 series C shares in Sobi.

The issue shall be effected on the following terms.

(ii)        Authorization for the Board of Directors to decide on a repurchase of all issued redeemable and convertible series C shares

Authorization for the Board of Directors to decide on a repurchase of all issued redeemable and convertible series C shares in Sobi on the following terms.

The repurchase of own shares is an integrated part of the hedging arrangements for the Program. The reason for the proposed possibility to repurchase own shares is that Sobi shall be able to fulfil its obligations pursuant to the Program.

(iii)        Resolution on transfers of own common shares to program participants
In total 5,163,172 series C shares were issued and repurchased by Sobi under previous share programs for the purpose of securing Sobi's obligations under such programs. The shares have subsequently been converted to common shares. Full allotment of shares will not take place under these programs and, accordingly, all shares will not be required to secure the obligations under such programs. The Board of Directors proposes that 1,049,749 common shares, which are no longer required to secure the obligations of Sobi under previous share programs, together with the shares issued and repurchased in accordance with items B.1(i) and B.1(ii) above, following conversion to common shares, may be transferred under the Program.

Transfers of Sobi's own common shares to program participants may be made on the following terms.

B.2   Equity swap agreement with a third party

Should the majority required under item B.1 above not be reached, the Board of Directors proposes that the annual general meeting resolves that the expected financial exposure of the Program shall be hedged by Sobi being able to enter into an equity swap agreement with a third party on terms in accordance with market practice, whereby the third party in its own name shall be entitled to acquire and transfer common shares in Sobi to the program participants.

Conditions

The annual general meeting's resolution on the implementation of the Program according to item A. above is conditional upon the meeting either resolving in accordance with the Board of Directors' proposal under item B.1 above or in accordance with the Board of Directors' proposal under item B.2 above.

Majority requirements

The annual general meeting's resolution according to item A. above requires a simple majority among the votes cast. A valid resolution under item B.1 above requires that shareholders representing not less than nine-tenths of the votes cast as well as of the shares represented at the meeting approve the resolution. A valid resolution under item B.2 above requires a simple majority among the votes cast.

The reason for the deviation from the shareholders' preferential rights etc.

The issue, repurchase and transfer of common shares in Sobi form part for the accomplishment of the proposed Program. Therefore, and in light of the above, the Board of Directors considers it to be advantageous for Sobi and the shareholders that the program participants are offered to become shareholders in Sobi.
For the purpose of minimizing Sobi's costs for the Program, the subscription price has been set at the quotient value of the share.

Previous incentive programs in Sobi

For a description of the company's other long-term incentive programs, reference is made to the company's annual report for 2013, note 14, and the company's web site, www.sobi.com. In addition to the programs described there, no other long-term incentive programs have been implemented in Sobi.

Authorization for the CEO

The Board of Directors proposes that the CEO shall be authorized to make the minor adjustments to the above resolution regarding the directed issue of redeemable and convertible series C shares in connection with the registration thereof with the Swedish Companies Registration Office and Euroclear Sweden AB.

Proposal regarding transfer of own shares (item 18)

The Board of Directors proposes that the annual general meeting resolves that not more than 338,766 common shares may, prior to the annual general meeting 2015, be transferred for the purpose of covering certain payments, primarily social security charges that may occur in relation to the Share Program 2011 and the CEO Share Program 2011. Transfer of shares shall be effected on NASDAQ OMX Stockholm at a price within the, at each time, prevailing price interval for the share. The number of shares that may be transferred shall be subject to recalculation in the event of an intervening bonus issue, split, rights issue and/or other similar events.

Majority requirements, etc.

The purpose of the Board of Directors' proposal to transfer shares is to secure for future cash flow effects due to payments of social security costs connected with the Share Program 2011 and the CEO Share Program 2011. A valid resolution requires approval of shareholders representing at least two-thirds of the votes cast as well as the shares represented at the general meeting.

Additional information

Information regarding all board members proposed to the Board of Directors of Swedish Orphan Biovitrum AB as well as the nomination committee's proposal and motivated opinion are available on the company's web site. The annual report, the audit report and other documents will be held available at the company's office at Tomtebodavägen 23A, in Solna and at the company's web site, www.sobi.com, not later than from Thursday 17 April 2014, and will be sent without charge to those shareholders who so request and who inform the company of their postal address.

Information at the annual general meeting

The Board of Directors and the CEO shall, if any shareholder so requests and the Board of Directors believes that it can be done without material harm to the company, provide information regarding circumstances that may affect the assessment of an item on the agenda, circumstances that can affect the assessment of the company's or its subsidiaries' financial situation or the company's relation to other companies within the group. Shareholders may submit questions in advance by sending them to Swedish Orphan Biovitrum AB (publ), "Annual General Meeting", SE-112 76 Stockholm or by email: communication@sobi.com.

Stockholm in April 2014
Swedish Orphan Biovitrum AB (publ)
The Board of Directors

About Sobi

Sobi is an international specialty healthcare company dedicated to rare diseases. Our mission is to develop and deliver innovative therapies and services to improve the lives of patients. The product portfolio is primarily focused on Inflammation and Genetic diseases, with three late stage biological development projects within Haemophilia and Neonatology. We also market a portfolio of specialty and rare disease products for partner companies. Sobi is a pioneer in biotechnology with world-class capabilities in protein biochemistry and biologics manufacturing. In 2013, Sobi had total revenues of SEK 2.2 billion (€253 M) and about 550 employees. The share (STO: SOBI) is listed on NASDAQ OMX Stockholm. More information is available at www.sobi.com.

For more information please contact
Oskar Bosson, Head of Communications
T: +46 70 410 71 80
oskar.bosson@sobi.com

[1] So-called Total Shareholder Return.
[2] See footnote 1.
[3] See footnote 1.
[4] See footnote 1.
[5] See footnote 1.
[6] See footnote 1.
[7] See footnote 1.
[8] See footnote 1.
[9] See footnote 1.
[10] See footnote 1.
[11] "Investment Shares" includes Executive Investment Shares and Employee Investment Shares.
[12] "Matching Shares" includes Executive Matching Shares and Employee Matching Shares and "Performance Shares" includes Executive Performance Shares and Employee Performance Shares.
[13] The quotient value of the share as per the day of this notice is approximately SEK 0.55.

Notice of annual general meeting in Swedish Orphan Biovitrum AB (publ) http://hugin.info/134557/R/1774004/604683.pdf

HUG#1774004