Photocure ASA

Earnings Release • Feb 23, 2023

Photocure ASA: Results for the fourth quarter of 2022

Photocure ASA: Results for the fourth quarter of 2022

Oslo, Norway, 23 February 2023 Photocure ASA (OSE:PHO) today reported

Hexvix[®]/Cysview[®] revenues of NOK 94.9 million in the fourth quarter of 2022

(Q4 2021: NOK 94.2 million), and an EBITDA of minus NOK 16.9 million (NOK -5.5

million). The total revenues increased 10% to NOK 104.2 million and there were

57 blue light towers placed in the quarter, a record high for expanding the

installed base of blue light cystoscopes. Photocure expects to deliver new

SaphiraT blue light tower installations in the range of 65 to 75, consolidated

product revenue growth above 20%, and positive EBITDA (ex-business development

spending) in 2023.

"The fourth quarter of 2022 was highlighted by a record number of Saphira tower

installations in the U.S., demonstrating ongoing high demand for blue light

capital equipment and serving as a leading indicator of the growth opportunity

ahead for Hexvix/Cysview. The fourth quarter also had its challenges as did the

full year of 2022, including a multi-quarter delay in the launch of Saphira,

healthcare worker staffing shortages which pressured urology procedure volumes,

and hospital budget tightening as staffing shortages exacerbated broader

inflationary pressures,"  says Dan Schneider, President & Chief Executive

Officer of Photocure.

Photocure reported total group revenues of NOK 104.2 million in the fourth

quarter of 2022 (NOK 94.5 million), and an EBITDA* of minus NOK 16.9 million

(NOK -5.5 million). The Hexvix/Cysview revenues ended at NOK 94.9 million in the

quarter (Q4 2021: NOK 94.2 million). The EBIT was NOK -23.1 million (NOK -11.5

million) and the cash balance at the end of the third quarter 2022 was NOK 268.1

million.

"I am proud of our commercial team's ability to facilitate the placement of the

highest number of towers ever recorded by Photocure in a single quarter, 57

installations of BLC towers. The logistics of placing this many systems in one

quarter, with most new account installations occurring toward the end of Q4,

required our commercial team to commit the majority of their time and focus on

customer relations and training. Even with the unprecedented number of new

Saphira and flexible BLC installations in the fourth quarter, the demand for

blue light capital equipment remains strong,"  Schneider adds.

During the quarter, 31 new blue light towers were installed; 24 new SaphiraT

cystoscopes and 7 flexible units. In addition, 26 OPP towers were installed

during the fourth quarter. The installed base of blue light cystoscopes in the

U.S. was 370 (311) at the end of the fourth quarter, a 19% increase from the

same period last year. This includes 69 flexible cystoscopes, an increase of

44%.

"We expect to deliver Hexvix/Cysview revenue growth of 20%+ and generate

positive EBITDA excluding business development spending in 2023, given the large

number of new accounts that have recently activated blue light equipment in

their facility, as well as the strong pipeline for anticipated SaphiraT tower

installations. We are already seeing signs of positive sales trends in our North

American business in early 2023, and in Europe, German hospital ordering

patterns appear to be phasing back to normalized growth," Schneider continues.

After the closing of the quarter, Karl Storz informed Photocure of supply issues

with components of its flexible BLC capital equipment that has paused sales of

new flexible towers. Photocure and Karl Storz are in the process of assessing

the issues and evaluating options to restore equipment availability. Photocure

plans to provide an update on the situation as progress is made on the multiple

strategies that it is undertaking to resolve the issue.

"While it is unfortunate that Karl Storz is not expected to ship additional

flexible BLC equipment for some time, we expect that the higher Medicare

reimbursement rates for blue light surveillance procedures will help us increase

the throughput on existing flexible towers. Given these new circumstances, we

will now focus on marketing Saphira rigid towers to ASC clinics so they can

treat patients in their facilities with positive economics," Schneider says and

concludes:

"In 2022, we encountered a series of external business challenges but were able

to navigate through and make progress in broadening the access and use of blue

light cystoscopy. We generated positive sales growth for the year, successfully

worked with Karl Storz to execute a major capital equipment launch after several

quarters of delay and strengthened our European commercial readiness for a

normalized healthcare delivery environment. With account access now open in our

major markets, the Saphira system now in position to create critical mass, and

the potential for reclassification of blue light capital equipment in the U.S.

market, we believe that 2023 will be an exciting year for Photocure."

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

fourth quarter 2022 financial report on page 22.

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/20230223_8/

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

For further information, please contact:

Dan Schneider

President and CEO

Photocure ASA

Tel: + 1-609 759-6515

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 23 February 2023 at 08:00 CEST.