Correction--Santhera Successfully Places CHF 60 million Senior Convertible Bonds

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Liestal, Switzerland, February 10, 2017 - Santhera Pharmaceuticals (SIX: SANN) announces the successful placement of CHF 60 million senior unsecured convertible bonds due 2022.

Santhera has successfully placed CHF 60 million senior unsecured convertible bonds (the "Convertible Bonds") due 2022. The Company intends to use the net proceeds from this placement primarily to fund the commercialization of Raxone^® in the currently approved indication, to prepare the market entry and commercial launch in subsequent indications, for investment into further clinical trials with Raxone and for other corporate purposes.

The Convertible Bonds have a 5-year maturity and a coupon of 5.00% per annum. The Conversion Price was fixed at CHF 86.4006, representing a premium of 20% over the volume weighted average price (VWAP) of the shares between the launch and pricing of the Convertible Bonds (the "Reference Share Price"). The Convertible Bonds are issued at 100% of their principal amount and, unless previously redeemed, converted or repurchased and cancelled, will mature on February 17, 2022, at 100% of their principal amount.

The Conversion Price will be reset after the first year if the VWAP of the shares during a specified period of time will be below the Reference Share Price. The new Conversion Price must not be lower than 75% of the Conversion Price at issuance. In addition, Santhera may call the Convertible Bonds at any time on or after the second anniversary of the issue date at par, plus accrued interest, if any, if the VWAP of the shares is at least 160% of the Conversion Price.

The Convertible Bonds will be convertible into 694,440 registered shares of Santhera Pharmaceuticals Holding AG, representing 11.1% of the current outstanding share capital of Santhera Pharmaceuticals Holding AG. The shares to be delivered upon conversion shall be sourced from conditional and, if needed, from authorized capital.

"The high demand from domestic and international investors is yet another sign of confidence in Santhera's potential and outlook. Proceeds from this latest financing enhance our financial flexibility in executing our development, regulatory and commercial activities as planned," said Christoph Rentsch, Chief Financial Officer of Santhera.