ArcticZymes Technologies — Earnings Release 2016

Apr 19, 2016

OSE-filing

Biotec Pharmacon: Results for Q1 2016

(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

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.