Photocure ASA

Earnings Release • Nov 10, 2020

Photocure ASA: Results for the third quarter of 2020

Photocure ASA: Results for the third quarter of 2020

Oslo, Norway, 10 November 2020: Photocure ASA (OSE:PHO) today reported

Hexvix[®]/Cysview[®] revenues of NOK 49.6 million in the third quarter of 2020

(Q3 2019: NOK 51.1), with the U.S. market continuing the Covid-19 rebound with a

growth of 20%. Photocure has successfully launched the European Hexvix

operations and reiterates the strong outlook and 2023 ambitions.

President & CEO Daniel Schneider comments: "The important U.S. market continued

to rebound in the third quarter with a 17% increase in YOY unit sales as fewer

procedures were postponed and business disruptions eased. We have deliberately

maintained our full commercial capabilities throughout the uncertainty of the

COVID pandemic in order to maximize the agility and flexibility necessary to

engage our customers personally, virtually and digitally. Photocure expects

continued changes in business conditions, but we are well positioned to

capitalize on opportunities through various methods. For this reason, we are

confident that we will weather the disruptions well and business will return to

the pre-COIVD-19 strong growth rates once the pandemic resolves.

We also concluded a successful transition of Ipsen's European operations to

Photocure and launched our European commercial operations on October 1. We have

invested in our European commercial organization, establishing an efficient

distribution and third-party logistics network throughout Europe. The entire

European team has worked tirelessly to ensure we hit the ground running, and I

am very pleased with the seamless transition. We are deploying our full

commercial capabilities to grow and expand these new markets".

Photocure reported total group revenues of NOK 49.9 million in the third quarter

of 2020 (NOK 60.8 million), with an EBITDA before restructuring of NOK -5.4

million (NOK 8.3 million). The Hexvix/Cysview revenues were NOK 49.6 million

(NOK 51.1 million). The demand in the U.S. market continued to rebound during

the quarter, with the in-market unit sales up 17 per cent, while the Ipsen

transition contributed to a one-off revenue reduction of NOK 8.9 million in the

European market and had a negative EBITDA impact of approximately NOK 7 million.

The installed base of rigid cystoscopes in the U.S. was 253 at the end of the

third quarter, an increase of 42 units or 20% since the same quarter last year.

Blue Light Cystoscopy (BLC[®]) in the surveillance setting is a key priority for

Photocure in the U.S. market. By the end of the 3rd quarter, a total base of 33

flexible cystoscopes have been installed giving more patients access to the

procedure with less constraints.

"We experience a solid underlying development across markets. In Europe, the

preparations for the commercial Hexvix operations had a one-off impact on the

revenues in the third quarter and the growth will be evident from the last

quarter of the year, while the sales development in the U.S. continues to

accelerate. By maintaining our commercial resources during the Covid-19 pandemic

we can ensure a rapid recovery as the situation improves," Schneider adds.

Over the past six months, Photocure has built the commercial infrastructure to

launch direct to market operations for Hexvix in the European markets formerly

operated by Ipsen. The successful transition and launch of European Hexvix

operations on October 1[st] has created a robust platform for accelerated growth

and expansion for Photocure.

The Hexvix rights were transferred to Photocure with the official launch of the

commercial operations beginning 1 October 2020. Photocure has paid Ipsen EUR 15

million for regaining the Hexvix rights and Ipsen will also receive earn-out

payments in the range of 10 -15% of sales (years 1-7 post-transfer) and 7.5% of

sales (years 8-10) in the former Ipsen markets.

"The U.S. and Europe are Photocure's main growth markets, with large untapped

opportunities, and the Ipsen agreement is expected to be EBITDA accretive from

the full-year 2021 and beyond. Based on the outlook and strategic opportunities,

Photocure maintains its group revenue ambitions for 2023 in the range of NOK 1

billion, with EBITDA margins of approximately 40%," 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

third quarter 2020 financial report on page 22-23.

Photocure will present its third quarter 2020 report on Tuesday 9 November 2020

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/hegnarmedia/#!/hegnarmedia/20201110_3. 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

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 subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.