Navamedic — Earnings Release 2016

Aug 18, 2016

Navamedic: Q2 2016 Results

Navamedic: Q2 2016 Results

Oslo, 18 August 2016 - Navamedic ASA (OSE: NAVA), reported revenues of NOK 66.7

million (59.6) in the second quarter of 2016, and a negative EBITDA of NOK 1.6

million (3.4). In addition to the announcement of the long-term strategic

partnership with TopRidge Pharma, the development and commercialisation of

Sippi® continued, in parallel with the expansion of new partnerships and

products.

"As the second quarter shows, Navamedic's underlying business is growing while

the company is investing in further commercialisation and development of Sippi,

the advanced urine metering system. Navamedic is also expanding its portfolio of

new partnerships and products, like the strategically important distribution

agreement with TopRidge Pharma Limited," says Tom Rönnlund, Chief Executive

Officer of Navamedic.

Revenues in the second quarter 2016 ended at NOK 66.7 million (59.6), with a

negative EBITDA of NOK 1.6 million (3.4). The Q2 2016 financial performance

reflects the high activity within business development and future growth

initiatives, as well as restructuring costs and continued commercialisation of

Sippi®.

During the quarter, Navamedic entered into an eight-year strategic distribution

agreement with TopRidge Pharma Ltd (TopRidge Pharma), for distribution of the

angina prevention medicine, Imdur®, in European markets. The agreement is

expected to contribute with annual, future revenues of NOK 70-100 million, and

the first revenues are expected during the second half of 2016.

"The partnership and distribution agreement is expected to represent significant

opportunities for Navamedic going forward, as future products planned for launch

in Europe by TopRidge Pharma and its parent company, will be offered to

Navamedic on a first right basis. This fall, Navamedic will also work jointly

with TopRidge Pharma on the introduction of Sippi in China," says Rönnlund.

The development and commercialisation of Sippi® progressed during the quarter,

including successful testing of the system's wireless communication

capabilities, SippLink®, in clinical settings. In addition, Navamedic was

granted a patent for Sippcoat® for use in any bodily drainage device,

significantly increasing the scope of the technology.

"Both events represent important milestones in the ongoing development and

positioning of Sippi. Navamedic experiences great interest and positive feedback

from potential customers and key opinion leaders in Nordic and other European

countries, and is looking forward to taking new important steps during the

second half of 2016," says Rönnlund.

Navamedic has strengthened its financial flexibility and robustness through the

Q2 rights share issue of 1.4 million shares towards TopRidge Pharma, which

amounts to NOK 11.3 million in new capital.

For further information, please contact:

Tom Rönnlund, CEO, Navamedic. Telephone +46 727 320 321.

Navamedic ASA is a Norwegian medtech and pharmaceutical products company,

delivering products to patients, hospitals and pharmacies in the Nordic and

Benelux markets. The Group's Medtech business has developed and is currently

introducing the next generation of digital urine meter Sippi®. Navamedic's

Pharma and Healthcare business is a distributor of products supplied by a number

of pharmaceutical manufacturers. Navamedic is listed on the Oslo Stock Exchange

(ticker: NAVA).

www.navamedic.com

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