ArcticZymes Technologies — Earnings Release 2015

Aug 12, 2015

Biotec Pharmacon: Results Q2 2015

Biotec Pharmacon: Results Q2 2015

(Tromsø, 13 August 2015) Biotec Pharmacon ASA ("Biotec", OSE: BIOTEC) reported

revenues of NOK 11.5 million (9.3) in second quarter 2015, and a negative EBITDA

of NOK 1.0 million (-2.3). Following the conclusion on the Woulgan® distribution

agreement process with Smith & Nephew, the company is discussing agreements with

potential distribution partners.

- Biotec´s underlying business continued to deliver solid performance during the

second quarter 2015, with revenue growth driven by the positive momentum in our

enzymes business. Following the conclusion with Smith & Nephew, we have

accelerated the process of entering into agreements with strong regional

business partners and distributors. We believe this strategy will enable us to

fully secure the commercial potential of Woulgan®, says Svein Lien, Chief

Executive Officer of Biotec.

Revenues in the second quarter 2015 ended at NOK 11.5 million (9.3), with an

EBITDA of NOK -1.0 million (-2.3). Sales revenues from beta-glucans and enzymes

were NOK 4.2 and 7.3 million respectively. The company has solid financial

headroom with a cash balance exceeding NOK 78 million at the end of the second

quarter.

Woulgan® is a unique product for the advanced wound care market and represents a

substantial commercial opportunity. In the beginning of July, Biotec informed

the market that Biotec and Smith & Nephew had agreed to end the Woulgan®

distribution agreement process initiated in 2012. During this agreement period,

Smith & Nephew has performed an evaluation study to obtain end-user feedback

from the use of Woulgan® in routine clinical settings. The study included a

total of 150 patients enrolled in sites in Germany and UK. The majority of

patients treated with Woulgan® had diabetic foot ulcers, but also a number of

patients with venous leg ulcers and other wounds were included.

- Smith & Nephew has now released all the data they have from the study to

Biotec. The data confirms positive preliminary results of improved healing

during the treatment period, less pain and improved comfort compared to start of

treatment, says Lien.

While the commercialization of Woulgan® through regional business partners and

distributors will require an extended time to market, the company believes this

approach will create attractive value for shareholders, as Biotec will capture a

larger part of the end user sales and more control of activities. In Europe, the

initial focus will be on Germany, UK and Scandinavia where the product already

has been tested.

The completed interim report for Q2 2015 is enclosed. The company is hosting a

presentation 13 August 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.