Review of financial reporting - Clavis Pharma ASA

2/1/2013 11:31 AM EST

In accordance with the Securities Trading Act Section 
15-1 subsection (3), Finanstilsynet (The Financial 
supervisory Authority of Norway) has reviewed some 
selected subjects in the financial statements of 
Clavis Pharma ASA for 2011. The final letter can be 
accessed on Finanstilsynet's internet site 
[http://www.finanstilsynet.no/no/Artikkelarkiv/Brev/20
13/Kontroll-av-finansiell-rapportering/]. 
The letter is only available in Norwegian.

The main focus has been the deferred revenue 
recognition of the "up-front" payments which Clavis 
Pharma received from the American company Clovis 
Oncology Inc. in 2009 and 2010. Finanstilsynet has 
noted the company's revenue recognition for the 
record, and has no further questions in this regard. 
However, Finanstilsynet is of the opinion that the 
disclosures are insufficient. Clavis Pharma has 
informed that the disclosures will be improved in the 
financial statements of 2012. Finanstilsynet has 
noted this for the record and has no further comments.

The review has also uncovered missing disclosures 
related to a transaction based on the company's 
license agreement with the American company 
Translational Therapeutics Inc., and insufficient 
disclosures related to long term loans, segment 
information and research and development expenses.