Photocure ASA

Earnings Release • Aug 23, 2017

Photocure ASA: Results for second quarter and first half year of 2017

Photocure ASA: Results for second quarter and first half year of 2017

Oslo, Norway, 23 August 2017: Photocure ASA (OSE:PHO), today reported a

Hexvix/Cysview revenue growth of 10% to NOK 37.6 million in the second quarter

of 2017 (Q2 2016: NOK 34.2), with an EBITDA of NOK 4.7 million for the

Hexvix/Cysview commercial franchise. The company reported a revenue growth of

55% for the important US market, were the company recently has announced several

significant developments.

"Our second quarter report shows significant progress for our US business. US is

a market of strategic importance for Photocure and we were delighted to present

in May positive results from our Phase 3 study in the bladder cancer

surveillance setting at the AUA meeting. These data formed the basis for our

recent sNDA filing aimed at expanding the label for BLC with Cysview in the US

to include the broader surveillance segment. Furthermore, after the quarter, we

were very pleased to learn that CMS proposes to reimburse Blue Light Cystoscopy

with Cysview from 2018, with a final decision expected later this year. We and

our supporters have worked tirelessly to secure better reimbursement for Cysview

in US and believe it will lead to increased access and allow better management

for bladder cancer patients in the future," says Kjetil Hestdal, President and

Chief Executive Officer of Photocure.

Photocure reported total group revenues of NOK 39.3 million in the second

quarter of 2017 (35.5), with a recurring EBITDA of NOK -4.4 million (-2.3). Net

profit was NOK -4.7 million (18.1), while the cash position ended at NOK 137.0

million. Global in-market unit sales of Hexvix/Cysview decreased 2% in the

second quarter, impacted by a reduction of the partner business of 6% in the

quarter. The sales development in the US was strong with a unit sales increase

of 37%. The EBITDA for the Hexvix/Cysview commercial franchise ended at NOK 4.7

million in the second quarter of 2017.

Photocure has built considerable experience in the urology sector through its

Hexvix/Cysview franchise and sees significant long-term value creation potential

in this market segment. The company aims to capitalize on the inclusion in the

AUA guidelines, as well as the increased patient awareness and the possible

changes to reimbursement of Cysview, to significantly increase penetration in

the US market.

Photocure reported in the second quarter that the Phase 3 study of

Hexvix/Cysview in the surveillance patient segment met its primary endpoint and

other major endpoints. Based on this, the company has submitted an sNDA to the

US FDA, with a possible approval in 2018, for use of Blue Light Flexible

Cystoscopy with Cysview in this out-patient surveillance setting.

CMS (United States Centers for Medicare & Medicaid Services) released in July

the Proposed Rule outlining its 2018 plan to reimburse hospital outpatients

departments using Blue Light Cystoscopy with Cysview. The comment period for the

proposed rule closes in early September, and CMS is expected to issue a Final

Rule in the fourth quarter of 2017 effective on 1 January 2018.

"Photocure believes that in order to increase market shares in the US, an

investment in the US salesforce is required. As stated previously, the company

plans to double its salesforce from 2016 and increase sales and marketing

expenses towards the end of 2017. The goal of these efforts is to quadruple the

revenues from the US operations to a range of USD 15 million by 2020. The

company is fully funded for this market strategy", says Hestdal.

Please find the full financial report and presentation enclosed.

Photocure will present its second quarter and first half year report on

Wednesday 23 August 2017 at Hotel Continental, Oslo, Norway. The presentation

will begin at 08:30 (CET) and representatives from the company will be Kjetil

Hestdal, President & CEO and Erik Dahl, CFO. The presentation will be held in

Norwegian.

The presentation will be publicly available at www.photocure.com. It will be

possible to follow the presentation through

http://webtv.hegnar.no/presentation.php?webcastId=58634954.

A light snack will be served from 08:00 (CET). The presentation is scheduled to

conclude at 09:15 (CET).

Photocure will additionally host an audio webcast and conference call

(http://webtv.hegnar.no/presentation.php?webcastId=58635101) the same day in

English at 17:00 CET / 16:00 GMT / 11:00 EST.

Please join the event conference 5-10 minutes prior to the start time using the

number and confirmation code below:

*   NORWAY:       +47 2100 2610

*   UK:                  +44(0)330 336 9105

*   USA:                +1 719 325 2226

Confirmation code: 1923019

It is possible to listen to a replay of the conference call on the following

numbers:

*   NORWAY         +47 2350 0077

*   UK                   +44 (0)207 984 7568

*   USA                 +1 719 457 0820

Confirmation code: 1923019

For further information, please contact:

Photocure

Kjetil Hestdal

President & CEO

Tel: + 47 913 19 535

Email: kh@photocure.no

Erik Dahl

Chief Financial Officer

Tel: +47 450 55 000

Email: ed@photocure.no

Notes to editors

About Photocure ASA

Photocure, headquartered in Oslo Norway, is a specialty pharmaceutical company

focusing on urology. Based on its unique proprietary Photocure Technology®

platform, Photocure is committed to developing and commercializing highly

selective and minimally invasive solutions to improve health outcomes for

patients worldwide. The company is listed on the Oslo Stock Exchange (OSE: PHO).

More information about Photocure is available at www.photocure.com,

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

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.