ArcticZymes Technologies — Earnings Release 2020

Apr 23, 2020

Biotec Pharmacon Q1 2020 Report

Biotec Pharmacon Q1 2020 Report

Tromsø, Norway, 23 April 2020 - Biotec Pharmacon (OSE: Biotec) reported sales of

NOK 34.3 million (14.8) and an EBITDA of NOK 13.8 million (-3.9) for the first

quarter of 2020. Improvements are in all areas of the business.

Highlights from Q1 2020

· New Group strategy kicks off in the right direction on the promise to drive

the company into profitability during 2020

· Gross profit for the Group improved 118% to NOK 26.2 million (Q1 2019: NOK

12.0 million)

· ArcticZymes had first quarter sales of NOK 18.5 million growing by 135% (Q1

2019: NOK 7.9 million)

· Biotec BetaGlucans had first quarter sales of NOK 15.8 million growing by

130% (Q1 2019: NOK 6.9 million)

· ArcticZymes growth driven by strong sales in the therapeutic segment and

upsides relating to sales of enzymes to partners launching coronavirus

diagnostic tests

· Secured 2020 commitment under commercial terms to supply SBG® Adjuvant for

continuation of clinical trials

· The Group delivered positive EBITDA with NOK 13.8 million (Q1 2019: NOK -3.9

million)

· Cash-flow for the quarter was NOK 4.4 million (Q1 2019: NOK -3.5 million)

CEO Jethro Holter comments:

"We are delighted with another outstanding quarterly performance by delivering a

profitable quarter of close to NOK 13.8 million EBITDA. Both the ArcticZymes and

Biotec BetaGlucans businesses have contributed to top line growth with

ArcticZymes delivering the best quarterly sales performance so far. For

ArcticZymes, the main growth drivers were from strong sales in the Salt Active

Nuclease (SAN) product line, and upsides from Cod UNG and other enzymes, which

have been rapidly incorporated into coronavirus diagnostics assays by several of

our customers. We expect these short-term upsides to continue but then subside

once the coronavirus outbreak passes. Longer-term the company will focus on

supporting its partners in developing the next generation of COVID-19 diagnostic

tests."

"Execution of the Company's new strategic direction following the recent

structural reorganisation has got off to a flying start. Q1 performance has

cemented the foundations in delivering on our promise to drive the company into

profitability during 2020."

"Furthermore, with ArcticZymes representing the company's core business, we are

inspired and excited to initiate a rebranding initiative to rename the parent

company to ArcticZymes Technologies. The new name builds on ArcticZymes strong

brand position, which has resonated well with its customers and shareholders.

ArcticZymes Technologies extends this further by reflecting the future direction

and purpose of the company."

-Ends-

First Quarter 2020 Presentation and Video Conference

A presentation by Biotec Pharmacon's CEO, Jethro Holter, and CFO, Børge

Sørvoll, will take place today, 23 April 2020, at 08:30 am CET via tele-/video

-conference. Call in details: +47 21 40 41 97 with conference id: 901 276 126#.

Participants who want to participate in the webcast are asked to send an email

to ir@biotec.no for a separate invitation.

The results, report and presentation for the first quarter 2020 will be

available on www.newsweb.no (https://protect

-eu.mimecast.com/s/ax_EC4xJkS8gx1SMlEBY?domain=newsweb.no) and on the Company's

homepage, www.biotec.no (https://protect-eu.mimecast.com/s/JfV3C1wDYUZ3XYhph

-Hn?domain=biotec.no) from 07:00 am on 23 April 2020.

For more information, please contact:

Biotec Pharmacon

CEO Jethro Holter Tel: +47 46 85 91 46

CFO Børge Sørvoll Tel: +47 95 29 01 87

ir@biotec.no

About Biotec Pharmacon ASA

Biotec Pharmacon is a Norwegian life sciences company focused on specialized,

novel enzyme and immunomodulating beta-glucan technology.

The Biotec Pharmacon Group is creating value from innovation in life science

markets via its subsidiaries, ArcticZymes and Biotec BetaGlucans. Its

technologies capitalize on more than three decades of world-class research at

the Arctic University of Tromsø to offer niche and high tech products in several

biotech segments.

ArcticZymes develops, manufactures and commercialises novel recombinant enzymes

for use in molecular research, In Vitro Diagnostics (IVD) and therapeutics.

Biotec BetaGlucans develops, produces and markets immunomodulating beta-glucans

addressing high unmet healthcare needs, such as chronic wound healing and as an

adjuvant in vaccines against certain types of cancer relapse.

Listed on the Oslo Stock Exchange since 2005 under the [Biotec] ticker, Biotec

Pharmacon is headquartered in Tromsø, Norway, in the SIVA Innovation Centre.

Biotec Pharmacon's unique IP and capabilities are protected via a large

portfolio of patents around both enzyme and beta-glucan products.

For more information, please visit the website: www.biotec.no.