Photocure ASA

Earnings Release • May 10, 2023

Photocure ASA: Results for the first quarter of 2023

Photocure ASA: Results for the first quarter of 2023

Oslo, Norway, 10 May 2023 - Photocure ASA (OSE:PHO) today reported

Hexvix[®]/Cysview[®] revenues of NOK 105.9 million in the first quarter of 2023

(Q1 2022: NOK 81.4 million) and EBITDA of minus NOK 1.2 million (NOK -13.9

million). Total revenues increased 30% year over year, and 30 high-definition

blue light towers were installed in the first quarter (18 new and 12 upgrades).

Photocure reiterates its guidance for 2023 and expects to deliver new SaphiraT

blue light tower installations in the U.S. in the range of 65 to 75,

consolidated product revenue growth above 20%, and positive EBITDA excluding

business development spending.

"Photocure delivered strong results in the first quarter of 2023, with revenue

in both our North America and European territories rebounding significantly from

the unusually soft fourth quarter last year. Hexvix/Cysview sales increased 30%

year over year driven by higher unit sales, price increases and foreign

exchange. Sequentially, product sales were up 12% from Q4 2022. Typically, the

first quarter is seasonally lower than the preceding fourth quarter, however the

recent pattern is indicative of unusual circumstances,"  says Dan Schneider,

President & Chief Executive Officer of Photocure.

Photocure reported total group revenues of NOK 106.2 million in the first

quarter of 2023 (NOK 81.6 million), and an EBITDA* of minus NOK 1.2 million (NOK

-13.9 million), driven by a combination of unit growth, price increases and

positive effects of foreign currency exchange. The Hexvix/Cysview revenues ended

at NOK 105.9 million in the quarter (Q1 2022: NOK 81.4 million). The EBIT was

NOK -7.7 million (NOK -19.9 million) and the cash balance at the end of the

period was NOK 246.0 million.

At the end of the first quarter of 2023, the installed base of blue light

cystoscopy (BLC[®]) systems in the U.S. was 388, an increase of 20% or 64 units

since the first quarter of 2022. The installed base in the U.S. includes 69

flexible BLC systems.

"In the U.S., we achieved a record first quarter with each month of Q1 2023

marking a new historic high. The installed base of blue light capital equipment

expanded once again, with 30 new SaphiraT tower installations in Q1 - 18 new

placements and 12 upgrades. Upgrading accounts is a key initiative in 2023, in

addition to new account growth. Importantly, 4 accounts that purchased new high

-definition equipment moved their legacy standard-definition towers to another

location creating additional blue-light enabled facilities. Our flexible BLC

business continued to perform in Q1. Given Karl Storz's decision to cease

supporting flexible blue light equipment when parts are no longer available, we

will increasingly focus on the rigid cystoscopy segment during the year.

Flexible BLC kit sales represent approximately 5% of our total annual revenue,

and we will work to offset the phase down of blue light surveillance revenue

with kit sales in the surgical segment. Demand for rigid BLC equipment remains

strong, and we continue to expect a record year for new blue light tower

installations in the U.S.,"  Schneider adds.

Ongoing healthcare staffing shortages and inflationary pressures leading to

hospital budget tightening, as well as the anticipated phase down of flexible

BLC equipment in the coming quarters present challenges in 2023 for Photocure's

business. Considering these challenges, Photocure has issued the following

guidance: In 2023, the company expects new SaphiraT blue light tower

installations in the range of 65 to 75, a consolidated product revenue growth

above 20%, and positive EBITDA excluding business development spending.

"Our business is on the upswing with several initiatives to drive growth this

year such as BLC system and image quality upgrades, and new account growth in

North America and in Europe. Other events and activities to watch include the

potential for re-classification of BLC equipment in the U.S., the pursuit of a

solution to develop and commercialize new flexible BLC cystoscopes, and

anticipated Phase 3 results from our partner Asieris for both Hexvix in China

and Cevira later this year. 2023 promises to be an exciting year for Photocure,

and we look forward to executing on our business plan and creating value for our

stakeholders," Schneider concludes.

Please find the full financial report and presentation enclosed.

EBITDA* and other alternative performance measures (APMs) are defined and

reconciled to the IFRS financial statements as a part of the APM section of the

first quarter 2023 financial report on page 23.

The quarterly report and presentation will be published at 08:00 CEST and will

be publicly available at www.photocure.com. Dan Schneider, CEO and Erik Dahl,

CFO, will host a live webcast at 14:00 CEST.

The presentation will be held in English and questions can be submitted

throughout the event. The streaming event is available through

https://channel.royalcast.com/landingpage/hegnarmedia/20230510_9/

The presentation is scheduled to conclude at 14:45 CEST.

For further information, please contact:

Dan Schneider

President and CEO

Photocure ASA

Email: ds@photocure.com

Erik Dahl

Chief Financial Officer

Tel: +47 450 55 000

Email: ed@photocure.no

David Moskowitz

Vice President of Investor Relations

Tel: +1 202 280 0888

Email: david.moskowitz@photocure.com

Media and IR enquiries:

Geir Bjørlo

Corporate Communications (Norway)

Tel: +47 91540000

Email: geir.bjorlo@corpcom.no

About Photocure ASA

Photocure: The Bladder Cancer Company delivers transformative solutions to

improve the lives of bladder cancer patients. Our unique technology, making

cancer cells glow bright pink, has led to better health outcomes for patients

worldwide. Photocure is headquartered in Oslo, Norway and listed on the Oslo

Stock Exchange (OSE: PHO). For more information, please visit us at

www.photocure.com, www.hexvix.com, www.cysview.com

All trademarks mentioned in this release are protected by law and are registered

trademarks of Photocure ASA.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to section 5-12 of the Norwegian Securities Trading Act.  This stock exchange

announcement was published by Tolv Hillestad, Group Controller, Photocure ASA,

on 10 May 2023 at 08:00 CEST.