ArcticZymes Technologies — Earnings Release 2015

Nov 2, 2015

OSE-filing

Biotec Pharmacon: Results for Q3 2015

(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.