Photocure ASA

Earnings Release • Feb 23, 2022

Photocure ASA: Results for the fourth quarter of 2021

Photocure ASA: Results for the fourth quarter of 2021

Oslo, Norway, 23 February 2022: Photocure ASA (OSE:PHO) today reported

Hexvix[®]/Cysview[®] revenues of NOK 94.2 million in the fourth quarter of 2021

(Q4 2020: NOK 97.7 million). Unit sales in the U.S. and Europe rose 11% and 12%,

respectively, while the revenue comparison was impacted by a one-time reversal

of an accrual in the prior-year period and foreign exchange. Photocure has a

solid pipeline of anticipated Blue Light Cystoscopy (BLC) tower installations in

the U.S. and expects placements to accelerate during the second half of 2022.

"Photocure showed strong execution and resilience in 2021 as we continued to

grow our U.S. business and successfully completed our first full year of

operations in continental Europe despite several surges of Covid-19. While

product revenue declined 4% in the fourth quarter of 2021 due to a one-time

accrual reversal in Q4 2020 and the impact of foreign exchange, fourth quarter

unit sales in the U.S. and Europe rose 11% and 12%, respectively year-over-year.

We are particularly pleased with the progress that we made during the 2-year

pandemic period, given the challenging conditions. Procedure volumes for bladder

cancer resection surgeries in the U.S. declined 11%, while we grew Cysview unit

volume by 24% from 2019 to 2021, resulting in an increase in our market

penetration," says Daniel Schneider, President & Chief Executive Officer of

Photocure.

Photocure reported total group revenues of NOK 94.5 million in the fourth

quarter of 2021 (NOK 97.9 million), and an EBITDA* of NOK -5.5 million (NOK 15.2

million). Adjusted for the one-time reversal of an accrual in the fourth quarter

of 2020, Hexvix/Cysview revenues increased 5% in the fourth quarter 2021 and

were up 10% in constant currencies. The EBIT ended at NOK -11.5 million (-6.2)

and the cash balance at the end of the fourth quarter 2021 was NOK 322.9

million. The installed base of rigid cystoscopes in the U.S. was 311 at the end

of the fourth quarter, an increase of 43 units or 16% since the same period in

2020, including a total base of 48 flexible cystoscopes.

"Demand for BLC equipment remains very strong, and while some customers are

awaiting the launch of the new Karl Storz system, we placed 9 towers in the

fourth quarter. Our backlog for new capital equipment continues to grow, and we

are extremely pleased that Karl Storz's new blue light system was approved by

the FDA earlier this month. As a result, both Photocure and Karl Storz are

energized and preparing to launch this new system in the coming months,"

Schneider adds.

The Company's pipeline of anticipated BLC tower installations in the U.S.

remains robust given the demand by physicians and facilities to offer the

benefits of BLC with Cysview in their practices. With the new Karl Storz blue

light system anticipated to launch throughout the U.S. in the second quarter of

2022, Photocure expects that the placements of new blue light rigid towers will

accelerate in the back half of the year. Meanwhile, the Company will continue to

focus on increasing the use of Cysview in existing accounts as well as placing

flexible BLC equipment, for which installation momentum is increasing.

"While the worldwide pandemic required us to take measures to manage through a

period of great uncertainty, we used that time and deployed the necessary

resources to position our global commercial organization to drive significant

Hexvix/Cysview growth once healthcare access returns to normal. With our

European operations fully integrated, a new high-definition BLC system launching

in the U.S. market, and Covid-19 becoming better managed, we believe that 2022

will be an exciting year for Photocure as we help more bladder cancer patients

realize the benefits of Hexvix/Cysview,"  Schneider concludes.

Please find the full financial

report (https://cms.photocure.com/uploads/PHO_Q4_2021_REP_39502dc94a.pdf) and

presentation (https://cms.photocure.com/uploads/Photocure_Q4_2021_Earnings_Slide_

Deck_Final_02_22_22_v2_ece5873a57.pdf) 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 2021 financial report on page 24.

Photocure will present its fourth quarter 2021 report on Wednesday 23 February

2022 at 14:00 CET. The investor presentation will be streamed live and be hosted

by Daniel Schneider, CEO and Erik Dahl, CFO.

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/20220223_10/

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

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 2022 at 07:30 CET.