Photocure ASA

Earnings Release • Feb 12, 2015

Photocure ASA: Results for fourth quarter and full year 2014

Photocure ASA: Results for fourth quarter and full year 2014

Oslo, Norway, 12 February 2015: Photocure (OSE: PHO), a Norwegian specialty

pharmaceutical company focused on photodynamic technologies in dermatology and

cancer, announces its results for fourth quarter and full year 2014.

Highlights include:

(Numbers in brackets are for the corresponding period in 2013)

* Hexvix/Cysview global in-market sales growth of 11% in the quarter to NOK

49 million and 19% for the full year to NOK 180 million. Full year unit

growth at 10%, in line with guidance

* Total sales revenues of Hexvix/Cysview increased 1% in the fourth quarter

and 18% for the full year to NOK 24.8 million and NOK 92.0 million,

respectively

* Hexvix/Cysview franchise full year operating profit at NOK 10.4 million, up

NOK 26.5 million from last year

* Commitment to start phase 3 post marketing commitment trial in 2015

capturing the substantial bladder cancer surveillance market

* Significant improvement of financial performance - full year net result

before tax at NOK 1.5 million compared to a net loss of NOK 66.9 million in

2013

* Cash and cash equivalents of NOK 165 million as of 31 December 2014

* In a retrospective study, published in World Journal of Urology, Hexvix

fluorescence-guided bladder resection significantly improved overall

survival and recurrence free survival compared to resection performed with

standard white light

* Successful end of Phase 2 meeting with the US FDA confirmed that the Cevira

Phase 2 data supports the proposed Phase 3 program

Key figures:

+--------------------------------+-------+-------+------+-------+-------+------+

|Figures in NOK million |4Q 2014|4Q 2013|Change|FY 2014|FY 2013|Change|

+--------------------------------+-------+-------+------+-------+-------+------+

|Sales revenues Hexvix / Cysview | 24.8| 24.5| 1 %| 92.0| 77.9| 18 %|

+--------------------------------+-------+-------+------+-------+-------+------+

|Sales revenues API | 0.0| 0.7|  | 1.6| 1.4|  |

+--------------------------------+-------+-------+------+-------+-------+------+

|Signing fee & milestone revenues| 1.2| 1.1|  | 35.4| 4.3|  |

+--------------------------------+-------+-------+------+-------+-------+------+

|Total revenues | 26.0| 26.3| -1 %| 129.0| 83.6| 54 %|

+--------------------------------+-------+-------+------+-------+-------+------+

|Gross profit | 24.1| 24.4| -1 %| 122.0| 76.8| 59 %|

+--------------------------------+-------+-------+------+-------+-------+------+

|Research and development | 9.6| 9.8| -2 %| 32.6| 34.0| -4 %|

|expenses | | | | | | |

+--------------------------------+-------+-------+------+-------+-------+------+

|Sales and marketing expenses | 13.9| 14.8| -6 %| 54.5| 68.4| -20 %|

+--------------------------------+-------+-------+------+-------+-------+------+

|Operating result excl. | -10.0| -10.5|  | -5.6| -63.0|  |

|restructuring & one-off | | | | | | |

+--------------------------------+-------+-------+------+-------+-------+------+

|Operating result incl. non- | -10.0| -19.1|  | -5.6| -75.5|  |

|recurring | | | | | | |

+--------------------------------+-------+-------+------+-------+-------+------+

|Net profit/loss before tax | -5.4| -17.3|  | 1.5| -66.9|  |

+--------------------------------+-------+-------+------+-------+-------+------+

|Earnings per share, diluted | -1.10| -0.43|  | -0.77| -2.78|  |

|(NOK) | | | | | | |

+--------------------------------+-------+-------+------+-------+-------+------+

President & CEO Kjetil Hestdal, M.D. Ph.D. comments:

"One of Photocure's key objectives in 2014 was to strengthen the Company's

financial performance. With increased sales of Hexvix/Cysview of 18%, the Salix

termination payment and our focus on cost reduction we have successfully

achieved this and are pleased to report break even net result before tax for the

full year.

Furthermore, we have had a successful dialogue with the FDA and Cevira is now

Phase 3 ready in the US. We also recently reported data demonstrating that

Hexvix guided resection can significantly improve overall survival and

recurrence free survival in bladder cancer compared to standard white light.

Looking ahead, we will continue to pursue strategic partnerships for both Cevira

and Visonac and are excited about our plans to expand the use of Hexvix into the

bladder cancer surveillance market. A phase 3 post-marketing commitment trial

also addressing this important market segment is expected to start during 2015."

Please find the full financial report and presentation enclosed.

Photocure ASA will present its interim report today at Hotel Continental, Oslo,

Norway. The presentation will begin at 08.30 (CET) and representatives from the

company will be Kjetil Hestdal, President & CEO and Erik Dahl, CFO.

The presentation will be publicly available at www.photocure.com. It will be

possible to follow the presentation through a live webcast.

A light snack will be served from 08:00 (CET). The presentation is scheduled to

conclude at 09:15 (CET).

Photocure will additionally host an audio webcast and conference call today in

English at 17:00 CET / 16:00 GMT / 11:00 EST.

Please make sure to dial in 5-10 minutes prior to scheduled conference call

start time on one of the following numbers:

* NORWAY:        +47 2316 2729

* UK:                  +44(0)20 7136 2056

* USA:                +1212 444 0481

Confirmation code: 1882099

It is possible to listen to a replay of the conference call on the following

numbers:

* NORWAY         +47 2100 0498

* UK                   +44 (0)20 3427 0598

* USA                 +1 347 366 9565

Confirmation code: 1882099

For further information, please contact:

Photocure

President & CEO Kjetil Hestdal

Tel: + 47 913 19 535, Email: kh@photocure.no

CFO Erik Dahl

Tel: +47 450 55 000, Email: ed@photocure.no

Trout International LLC

Lauren Williams

Tel: +44 20 3780 4972

Email:lwilliams@troutgroup.com

About Photocure

Photocure, headquartered in Oslo Norway, is a specialty pharmaceutical company

and world leader in photodynamic technology. Based on our unique proprietary

Photocure Technology(TM) platform, Photocure develops and commercializes highly

selective and effective solutions within disease areas with high unmet medical

need, such as bladder cancer, HPV and precancerous cervical lesions, colorectal

cancer and skin conditions. Our aim is to provide solutions which can improve

health outcomes for patients worldwide. Photocure is listed on the Oslo Stock

Exchange (OSE: PHO). Information about Photocure is available at

www.photocure.com.

All trademarks mentioned in this release are protected by law and registered

trademarks of Photocure ASA.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1893785]