Photocure ASA

Earnings Release • Feb 15, 2017

Photocure ASA: Results for fourth quarter and full year 2016

Photocure ASA: Results for fourth quarter and full year 2016

Oslo, Norway, 15 February 2017: Photocure ASA (OSE: PHO), a specialty

pharmaceutical company focused on photodynamic technologies in cancer and

dermatology, reported a revenue growth of 10 % to NOK 38.1 million in the fourth

quarter of 2016 (Q4 2015: NOK 34.5), with an EBITDA of NOK 10.7 million for the

Hexvix/Cysview commercial franchise. Full year 2016 revenues ended at NOK 143.6

million (134.7). Photocure targets revenues from the US operations to quadruple

to a range of USD 15 million by 2020.

"2016 was a positive year for Photocure as we continued to build momentum in the

US with Cysview. A significant milestone was reached by the inclusion and

recommendations of Cysview in National treatment guidelines in the US. In

addition, several papers including strong new clinical evidence supporting the

use of Hexvix/Cysview were published during 2016. These events, together with

the increase in installed base of Blue Light enabled Cystoscopes in the US and a

higher level of patient awareness, provide us with confidence that our planned

increase in investment in the US commercial urology franchise will create value

for our shareholders in the future. Lastly, we are also looking forward to

receiving results from our expanded use Phase 3 study in the US with the Karl

Storz flexible scope in the surveillance setting in the middle of the year."

said Kjetil Hestdal, President and CEO.

Photocure reported total revenues of NOK 38.1 million in the fourth quarter of

2016 (34.5), with an EBITDA of NOK -0.3 million (-8.7). Net profit was NOK 17.9

million (-9.4), while the cash position ended at NOK 169.2 million.

Hexvix/Cysview revenues grew 13% for the full year but declined 5% in the fourth

quarter mainly due to inventory reductions at distributors, as well as a

negative impact from foreign exchange rates. In-market unit sales increased with

3% in the quarter.

"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 has over the last years experienced a strong

and growing penetration of Hexvix in key European markets and aims to capitalize

on the inclusion in the AUA guidelines as well as the increased patient

awareness to significantly increase penetration in the US market. Photocure does

however believe that in order to increase market shares in the US to European

levels, an investment in the US salesforce is required," said Hestdal.

The company will therefore double its salesforce and increase sales and

marketing expenses accordingly towards the end of 2017. The company believes

these efforts will result in revenues from the US operations to quadruple to a

range of USD 15 million by 2020.

"As a result of the increased activity level, the added operating expenses will

contribute to an EBITDA decline for the group in 2017 and 2018. Photocure is

fully funded for this market strategy. Photocure has also completed enrollment

in its Phase 3 study of Hexvix/Cysview in the surveillance patient segment and

expect to report clinical results in mid-2017. The company will then submit an

sNDA to the US FDA, with a possible approval in 2018 for use of Blue Light

Flexible Cystoscopy with Cysview in this setting," Hestdal concludes.

Photocure is continuing its discussions and due diligence processes with

potential partners to establish strategic partnerships for its non-urology

products, Visonac and Cevira.

Please find the full financial report and presentation enclosed.

Photocure ASA will present its interim report today 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 publicly available at www.photocure.com. It will be

possible to follow the presentation through a live webcast.

Photocure will additionally host an audio webcast and conference call today 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 2350 0296

* UK:                  +44(0)330 336 9412

* USA:                +1 719 325 2213

Confirmation code: 4694143

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: 4694143

For further information, please contact:

Photocure

President & CEO Kjetil Hestdal

Tel: + 47 913 19 535

Email: kh@photocure.no

CFO Erik Dahl

Tel: +47 450 55 000

Email: ed@photocure.no

Trout International LLC

Lauren Williams

Tel: +44 20 3780 4972

Email:lwilliams@troutgroup.com

Notes to editors

About Photocure ASA

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

and world leader in photodynamic technology. Based on our unique proprietary

Photocure Technology(®) platform, Photocure develops and commercializes highly

selective and effective solutions within disease areas with high unmet medical

need, such as bladder cancer, HPV and precancerous cervical lesions, and skin

conditions. Our aim is to provide solutions which can improve health outcomes

for patients worldwide. Photocure is listed on the Oslo Stock Exchange (OSE:

PHO). Information about Photocure is available at www.photocure.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.