ArcticZymes Technologies — Earnings Release 2016

Apr 19, 2016

Biotec Pharmacon: Q1 2016 Results

Biotec Pharmacon: Q1 2016 Results

(Tromsø,19 April 2016) Biotec Pharmacon ASA ("Biotec", OSE: BIOTEC) reported

revenues of NOK 17.3 million (12.3) in the first quarter of 2016, and a negative

EBITDA of NOK 3.5 million (-2.8). Biotec continues its market preparations in

the UK and Nordic region while clarifying the distribution model for Germany.

- Supported by growth in both the beta-glucan and enzyme business, Biotec report

solid growth in the first quarter with revenues 40 percent higher than the

corresponding quarter last year. We are currently working at full speed to

position and launch Woulgan® for the professional wound care market in the UK

and Nordic region while clarifying the distribution model for Germany, says

Svein Lien, Chief Executive Officer of Biotec.

Revenues in the first quarter 2016 ended at NOK 17.3 million (12.3), with an

EBITDA of NOK -3.5 million (-2.8). Sales revenues from beta-glucans and enzymes

were NOK 9.2 and 8.1 million, respectively. The Company has a solid financial

position with a cash balance exceeding NOK 67.7 million at the end of the first

quarter.

Commercialization of the Woulgan® Gel, Biotec's novel product for active healing

of stalled wounds, is at the core of the company's strategy going forward. In

Q1, Biotec has focused on building key opinion leader support and has worked to

strengthen the company's commercial platform in key markets.

In the Nordic region its distribution partner Navamedic has submitted the first

tender bid in Finland. A listing under this tender enables health care

professionals in the region to purchase the product. Several new tender

submissions are planned during the second quarter. In the UK, several clinical

evaluations are ongoing, while the NHS Drug Tariff is reviewing the Woulgan®

reimbursement application and is expected to reach a decision in 3-4 months.

- Another important milestone during the quarter was the signing of a two-year

agreement for supply of beta-glucans to the animal health segment. Biotec will

continue to develop new and secure existing supplier agreements within animal

health and nutrition, says Lien.

Biotec reiterates its 2016 operational targets for Woulgan®, presented at the

company's Capital Markets Day on 11 February 2016.

- During the year, we will enter into one or more distribution agreements in

Germany, finalise the UK reimbursement process in the high-end category of the

market, drive sales in the UK and Nordic countries, and continue to develop our

international marketing organization, says Lien.

The complete interim report for Q1 2016 is enclosed. The company is hosting a

presentation on 19 April 2016 at 08:30 CET at Hotel Continental, Stortingsgata

24, Oslo.

For additional information,

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

Børge Sørvoll, CFO, +47 952 90187, borge.sorvoll@biotec.no

About Biotec Pharmacon ASA:

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

ArcticZymes AS. Biotec BetaGlucans develops, manufactures and markets novel

immunomodulating products, including Woulgan®, a premium priced product in the

advanced wound care market. ArcticZymes develops, produces and markets enzymes

of marine origin used in molecular DNA technologies and diagnostics,

representing growth markets where rapid technological developments are creating

a strong demand for new and improved enzymes.