Photocure ASA

Earnings Release • Nov 8, 2018

Photocure ASA: Results for the third quarter of 2018

Photocure ASA: Results for the third quarter of 2018

Oslo, Norway, 8 November 2018: Photocure ASA (OSE:PHO), today reported a revenue

growth of 42% in local currency for the U.S. market in the third quarter of

2018, contributing to total Hexvix/Cysview revenues of NOK 43.5 million (Q3

2017: NOK 35.5 million) and a recurring EBITDA of NOK -3.1 million (NOK -9.6

million). With the reimbursement of blue light cystoscopy with Cysview, FDA

approval of label expansion for Cysview and the launch of Cysview in combination

with flexible cystoscopes in the surveillance of bladder cancer patients, the

company reiterates the positive outlook for the important U.S. market.

"The Photocure team has built a unique company within the field of bladder

cancer, with excellent people, world leading technology and high-potential

products. The company has developed a solid infrastructure in key regions. We

will continue to scale and leverage on this growth platform to deliver on the

commercial opportunities in the bladder cancer markets. I look forward to work

with the team to expand the commercial footprint and to embark on the growth

journey for Photocure," says Daniel Schneider, President & Chief Executive

Officer of Photocure, who started October 29th, 2018.

Photocure reported total group revenues of NOK 44.4 million in the third quarter

of 2018 (NOK 35.6 million), with a recurring EBITDA of NOK -3.1 million (NOK

-9.6 million). Net earnings was NOK -4.8 million (NOK -10.1 million), while the

cash position ended at NOK 92.8 million. The sales development in the U.S. was

strong with a unit sales increase of 35% in the quarter. The revenues in the

Nordics increased 19% to NOK 10.6 million (NOK 9.0 million) in the third

quarter, driven by price increases as well as higher billing compared to last

year. EBITDA for the Hexvix/Cysview commercial franchise ended at NOK 1.3

million in the third quarter of 2018. At the end of the quarter the total

installed base of permanent blue light cystoscopes (BLCs) was 131. In addition,

6 flexible cystoscopes for the surveillance setting have been installed.

Photocure has built considerable experience in the bladder cancer market 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-SUO guidelines, as well as the increased patient awareness

and the changes to reimbursement of Cysview for outpatient TURBT procedures with

rigid cystoscopes, to significantly increase penetration in the U.S. market.

Furthermore, with the approval of the extension of the indication for BLC with

Cysview to include flexible cystoscopies, a significant market opportunity has

opened in the surveillance segment.

"Photocure has invested significantly in the U.S market over the two last years.

These investments will enable the company to drive the U.S. revenues in 2020 to

a range of USD 20-25 million and towards profitability, with potential driven by

favorable reimbursement and penetration of the surveillance segment. The company

will update the market on this outlook at latest when releasing full year 2018

results", Mr. Schneider concludes.

Please find the full financial report and presentation linked: PHO Q3 2018

REPORT (http://mb.cision.com/Public/17498/2666801/b34edfb8e236d45e.pdf) PHO Q3

2018 PRES (http://mb.cision.com/Public/17498/2666801/a7c4fa27ee751c19.pdf)

Photocure will present its third quarter report on Thursday 8 November 2018 at

Hotel Continental, Oslo, Norway. The presentation will begin at 08:30 (CET) and

representatives from the company will be Daniel Schneider, President & Chief

Executive Officer, Erik Dahl, Chief Financial Officer and Ambaw Bellete,

President, Photocure Inc. and Head, US Cancer Commercial Operations. Jan

Egberts, Chairperson of Photocure ASA, will also be present. The presentation

will be held in English.

It will be possible to follow the presentation through

http://webtv.hegnar.no/presentation.php?webcastId=97451491

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

conclude at 09:15 (CET).

For further information, please contact:

Photocure

Daniel Schneider

President and CEO

Tel: +1 5084108044

Email: ds@photocure.com

Erik Dahl

CFO

Tel: +47 450 55 000

Email: ed@photocure.no

Notes to editors

About Photocure ASA

Photocure, The Bladder Cancer Company, delivers transformative solutions to

improve the lives of bladder cancer patients. Our unique technology, which makes

cancer cells glow bright pink, has led to better health outcomes for patients

worldwide. Photocure is headquartered in Oslo, Norway, and listed on the Oslo

Stock Exchange (OSE: PHO). The US headquarters for Photocure Inc., are in

Princeton, New Jersey. For more information, please visit us at

www.photocure.com, www.hexvix.com or www.cysview.com