Photocure ASA

Earnings Release • Nov 8, 2017

Photocure ASA: Results for the third quarter of 2017

Photocure ASA: Results for the third quarter of 2017

Oslo, Norway, 7 November 2017: Photocure ASA (OSE:PHO), today reported a revenue

growth of 45% for the important US market in the third quarter of 2017,

contributing to Hexvix/Cysview revenues of NOK 35.5 million (Q3 2016: NOK 31.6)

and an EBITDA of NOK -0.2 million for the commercial franchise. Following the

new Medicare reimbursement from 2018, Photocure increases the annual revenue

ambition for 2020 to a range of USD 20 to 25 million.

"Our third quarter report demonstrates continued significant progress in our US

business. The new reimbursement of Blue Light Cystoscopy with Cysview for

Medicare patients, as well as the potential to expand Cysview's label in the US

show our commitment to this important market. It also confirms our desire to

deliver patients better access to bladder cancer treatment. We expect the new

reimbursement to drive significant growth in the future," says Kjetil Hestdal,

President and Chief Executive Officer of Photocure.

Photocure reported total group revenues of NOK 35.6 million in the third quarter

of 2017 (35.2), with a recurring EBITDA of NOK -9.6 million (-1.6). Net profit

was NOK -10.1 million (0.1), while the cash position ended at NOK 123.1 million.

Global in-market unit sales of Hexvix/Cysview increased 3% in the third quarter,

impacted by a reduction of the partner business of 1% in the quarter. The sales

development in the US was strong with a unit sales increase of 39%. The EBITDA

for the Hexvix/Cysview commercial franchise ended at NOK -0.2 million in the

third quarter of 2017.

Photocure has built considerable experience in the urology sector through its

Hexvix/Cysview franchise and sees significant long-term value creation potential

in this market segment. The company aims to capitalize on the inclusion in the

AUA guidelines, as well as the increased patient awareness and the changes to

reimbursement of Cysview in the outpatient setting, to significantly increase

penetration in the US market. CMS (United States Centers for Medicare & Medicaid

Services) released in November the Final Rule stating that it will reimburse

hospital outpatient departments for certain Blue Light Cystoscopy (BLC) with

Cysview procedures from January 1, 2018.

"Photocure believes that in order to increase market shares in the US, an

investment in the US commercial and medical infrastructure is required. As

stated previously, the company plans to double its salesforce from 2016 and

increase sales and marketing expenses towards the end of 2017. The goal of these

efforts is to quadruple the revenues from the US operations by 2020 before the

impact of Medicare reimbursement. The added reimbursement will have a positive

effect on future revenues, however, the full implications of this positive

change are not expected to be fully known before second half of 2018. Currently

the company estimates that the added reimbursement will drive the US revenues in

2020 to a range of USD 20-25 million", says Hestdal.

Photocure reported in May this year that the Phase 3 study of Hexvix/Cysview in

the surveillance patient segment met its primary endpoint and other major

endpoints. Based on this, the company submitted asupplemental New Drug

Application (sNDA) to the US FDA, and in October FDA accepted for review and

granted priority review status to the sNDA for Cysview. A decision on the

approval by the FDA during the first half of 2018.

Please find the full financial report and presentation enclosed.

Photocure will present its third quarter report on Wednesday 8 November 2017 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 held in Norwegian.

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

possible to follow the presentation through

http://webtv.hegnar.no/presentation.php?webcastId=67473710.

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

(http://webtv.hegnar.no/presentation.php?webcastId=67473875) the same day in

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

Please join the event conference 5-10 minutes prior to the start time using the

number and confirmation code below:

* NORWAY:       +47 2350 0296

* UK:                  +44(0)330 336 9411

* USA:                +1 323 794 2094

Confirmation code: 6929135

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

numbers:

* NORWAY         +47 2350 0077

* UK                   +44 (0)207 984 7568

* USA                 +1 719 457 0820

Confirmation code: 6929135

For further information, please contact:

Photocure

Kjetil Hestdal

President & CEO

Tel: + 47 913 19 535

Email: kh@photocure.no

Erik Dahl

Chief Financial Officer

Tel: +47 450 55 000

Email: ed@photocure.no

Notes to editors

About Photocure ASA

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

focusing on urology. Based on its unique proprietary Photocure Technology®

platform, Photocure is committed to developing and commercializing highly

selective and minimally invasive solutions to improve health outcomes for

patients worldwide. The company is listed on the Oslo Stock Exchange (OSE: PHO).

More information about Photocure is available at www.photocure.com,

www.hexvix.com, www.cysview.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.