ArcticZymes Technologies — Earnings Release 2019

Jan 30, 2020

Biotec Pharmacon Q4 2019 Report

Biotec Pharmacon Q4 2019 Report

Tromsø, Norway, 30 January 2020 - Biotec Pharmacon (OSE: Biotec) announces its

fourth quarter and 2019 results.

Highlights from Q4 2019

· Positive EBITDA with NOK 4.6 million (Q4 2018: NOK 1.8 million)* mainly due

to ArcticZymes sales. Accruals for onetime expenses relating to restructuring

costs amounting to NOK 2.0 million were included in the fourth quarter.

· Gross profit for the Group improved 28% to NOK 18.1 million (Q4 2018: NOK

14.2million)* mainly due to strong top line growth in ArcticZymes.

· ArcticZymes had fourth quarter sales of NOK 16.2 million growing by 52% (Q4

2018: NOK 10.7 million).

· Net Cash-flow for the fourth quarter was NOK 9.2 million (3.5), explained by

underlying performance.

· A new Group strategy was implemented with the primary objective to drive the

Group into profitability during 2020. ArcticZymes represents the main strategic

arm of the business and the decision was made to divest Woulgan

· Hired Jethro Holter as interim CEO, replacing Christian Jørgensen.

· ArcticZymes launched M-SAN in order to gain greater market access and growth

in the therapeutics segment.

*Excludes IFRS 5 "Assets held for sale" relating to the divestment of Woulgan.

2018 figures are adjusted according to IFRS 16 for comparison purposes

Interim CEO Jethro Holter comments:

"We are delighted with an outstanding fourth quarter performance delivering a

profitable quarter of NOK 4.6 million. The ArcticZymes business has proved

instrumental in being the main contributor to top line growth during the quarter

and 2019. The recent decision to redirect our main strategic focus toward

ArcticZymes will only catalyse the growth potential and profitability of the

company even more as we move into 2020 and beyond."

"The decision to divest Woulgan was a difficult, but right decision to take.

Despite our best efforts with feet on the ground and marketing efforts,

quarterly and annual performance fell short of our expectations. Biotec as a

standalone company will never be able to generate the kind of revenues and

attention that Woulgan deserves, hence Woulgan is best in the hands of a new

owner with considerable marketing power."

"In supporting the new strategy and delivering our promise to drive the company

into profitability during 2020, we are all reorganised and ready to achieve our

milestones."

-Ends-

Fourth Quarter 2019 Presentation and Webcast

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

Sørvoll, will take place today, 30 January 2020, at 08:30 am CET at Hotel

Continental, Stortingsgata 24/26, Oslo

The presentation can also be followed as a live webcast from Hegnar TV on or

https://channel.royalcast.com/webcast/hegnarmedia/20200130_6/ . It will be

possible to post questions through the webcast console.

The results, report and presentation for the fourth quarter 2019 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 30 January 2020.

- Ends -

For more information, please contact:

Biotec Pharmacon

Interim 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.