ArcticZymes Technologies — Earnings Release 2015

Nov 2, 2015

Biotec Pharmacon: Q3 2015 Results

Biotec Pharmacon: Q3 2015 Results

(Tromsø, 3 November 2015) Biotec Pharmacon ASA ("Biotec", OSE: BIOTEC) reported

revenues of NOK 16.4 million (9.6) in the third quarter 2015, and a negative

EBITDA of NOK 3.5 million (-6.0). Following the announcement of the distribution

agreement with wound care specialist H&R Healthcare, the companies are preparing

Woulgan® for launch in UK and Ireland.

- With 70 per cent revenue growth in the third quarter, the strong momentum and

solid underlying business development continues to yield results. In addition,

we entered into a milestone distribution agreement with H&R Healthcare covering

the UK and Ireland. We are pleased with the cooperation with H&R and are jointly

working to position Woulgan® in this important market, says Svein Lien, Chief

Executive Officer of Biotec.

Revenues in the third quarter 2015 ended at NOK 16.4 million (9.6), with an

EBITDA of NOK -3.5 million (-6.0). Sales revenues from beta-glucans and enzymes

were NOK 11.0 and 5.4 million, respectively. The company has a solid financial

position with a cash balance exceeding NOK 76 million at the end of the third

quarter.

Woulgan® is a premium priced product targeting hard to heal wounds in the

professional wound care market. Biotec entered into a distribution agreement

with wound care specialist H&R Healthcare, covering the UK and Ireland during

the third quarter. There are more than 3 million people with diabetes in the UK,

accounting for more than 10% of the total UK health care budget.

- The health economic data supports our aim of obtaining an acceptable

reimbursement in the UK. At the same time, H&R together with Biotec are working

with local opinion leaders to get their support, which is crucial to succeed

with a product launch. A similar process is being planned in Germany as well as

Scandinavia. The German market is the largest in Europe, but very fragmented and

different from the UK. The company is currently making a thorough assessment of

this market opportunity and is also working with potential distributors to find

the best possible commercial entrance strategy, says Lien.

Instrumental to the ongoing market activities is the announcement of Stuart

Devine as Vice President Marketing for Woulgan®. Devine has 20 years' experience

in marketing and sales of medical devices. He comes from a position as Director

Marketing for Global Marketing/Alternate Channels Advanced Wound Care in Smith &

Nephew.

- We are pleased to welcome Stuart to the Biotec team. He brings extensive

experience and will ensure effective market penetration processes in the various

markets, says Lien.

The completed interim report for Q3 2015 is enclosed. The company is hosting a

presentation 3 November 2015 at 08:30 CET at Hotel Continental, Stortingsgata

24, Oslo.

For additional information,

Svein Lien, CEO, +47 922 89 323, svein.lien@biotec.no

About Biotec Pharmacon ASA:

Biotec Pharmacon ASA is the parent company of Biotec BetaGlucans AS and

ArcticZymes AS. Biotec BetaGlucans develops and manufactures novel

immunomodulating products, and has recently obtained CE-mark for Woulgan®

containing its proprietary substance SBG®. Woulgan® is a primary dressing for

one-time use on skin wounds, including diabetic ulcers, bedsores, leg ulcers,

transplantation wounds, post-surgery wounds, trauma wounds, first- and second

-degree burns, abrasions, and cuts. ArcticZymes develops, produces and sells

enzymes of marine origin used in molecular DNA technologies and diagnostics,

growth markets where rapid technological developments are creating a strong

demand for new and improved enzymes.