Exicon Co., Ltd. — Earnings Release 2015

Feb 8, 2016

Copenhagen, 2016-02-08 14:42 CET (GLOBE NEWSWIRE) -- Exiqon A/S (NASDAQ OMX
Copenhagen: “EXQ”) today announced full year 2015 results in line with the
company’s most recently announced expectations of revenue around DKK 162
million and EBITDA around DKK 12 million. Exiqon realized full year 2015
profitability of DKK 5.9 million in net profit.

In 2015 Exiqon successfully executed its growth strategy towards becoming the
leading provider of flexible solutions for validation of RNA sequencing results
by leveraging existing capabilities and capturing significant new market
opportunities. In 2015, new products for qPCR analysis of mRNA and functional
analysis of lncRNA were launched to further strengthen future growth. Exiqon
has positioned itself as market innovator with the launch of the XploreRNA™
cloud-computing environment designed to transform the NGS workflows by
integrating automated data analysis with custom assay design. After having
secured recent bond financing of DKK 40 million, Exiqon accelerates planned
growth initiatives.

Financial highlights:

In summary (DKK million) Q4 2015 Q4 2014 FY 2014 FY 2015

Revenue 46.6 34.4 132.4 162.0

Gross profit 28.4 22.1 85.2 102.6

EBITDA 3.8 -1.1 3.1 12.2

Net profit 5.2 -3.6 -2.8 5.9

EPS 0.14 -0.10 -0.08 0.16

-- Total revenue increased 22% to DKK 162.0 million (DKK 132.4 million) driven
by 25% growth in the company’s own products and service sales (excluding
OEM):
-- Product sales (excluding OEM) is the key driver for Exiqon’s growth. S
ales increased 26% to DKK 103.8 million (DKK 82.6 million) in 2015.
-- Services
paves the way for development of new proprietary products and so
initially
drive Exiqon’s growth in new market.
In 2015 services increased 23% to DKK 25.2 million (DKK 20.5 million).
-- Gross profit improved 20% to DKK 102.6 million (DKK 85.2 million) driven by
higher sales volumes.
-- Total operating costs increased 12% to DKK 98.9 million (DKK 88.3 million)
due to new hiring's in R&D and S&M:
-- EBITDA improved to DKK 12.2 million (DKK 3.1 million)
-- EBIT improved to DKK 3.6 million (DKK -3.1 million)
-- The net result for 2015 improved to DKK 5.9 million (DKK -2.8 million)
-- EPS improved to DKK 0.16 (-0.08)
-- Cash flows from operating activities amounted to DKK 16.1 million (DKK -2.4
million)

Summarized financial outlook for 2016:

In 2016, we expect total revenue between DKK 180-185 million driven by around
20% growth in sales of products and services (excluding OEM) with EBITDA of DKK
15-20 million (exclusive of shared-based costs) and EBIT more than doubling.

The outlook for 2016 is based on an average USD/DKK exchange rate between DKK
6.75-7.00 and does not include any significant one-time income or extraordinary
costs.

In a comment, CEO Lars Kongsbak said: ”We are excited to have reached the
important milestone of full year profitability in 2015 and secured continued
strong revenue growth driven by products and service sales. Our recent bond
financing has allowed us to accelerate important growth initiatives that will
help us capture significant new market opportunities in 2016.

We continue to make progress in our diagnostic programs and expect to publish
important validation results from our prostate cancer programs during Q3 2016.“

Please see the enclosed PDF for the full Annual Report 2015.

Additional information

Lars Kongsbak, CEO, mobile phone: +45 4090 2101

Hans Henrik Chrois Christensen, CFO, mobile phone: +45 4090 2131

About Exiqon

At Exiqon, we advance the research of when and where genes are expressed. We
empower scientists across the world with best-in-class products and
user-friendly business solutions designed to transform workflows in our
industry. Exiqon operates in two business areas: Exiqon Life Sciences is a
leading provider of flexible solutions for gene expression analysis. Academia,
biotech and pharmaceutical companies around the world use Exiqon’s research
products to make ground-breaking discoveries. Exiqon Diagnostics collaborates
with diagnostic and pharmaceutical companies to develop novel molecular
diagnostic tests for early detection of diseases, which can help physicians
make better treatment decisions. Exiqon is listed on Nasdaq Copenhagen. For
more information about us, please visit www.exiqon.com