Photocure ASA

Earnings Release • Feb 27, 2019

Photocure ASA: Results for the fourth quarter of 2018

Photocure ASA: Results for the fourth quarter of 2018

Oslo, Norway, 27 February 2019: Photocure ASA (OSE:PHO), today reported a

revenue growth of 76% in local currency for the U.S. market in the fourth

quarter of 2018, contributing to Hexvix/Cysview revenues of NOK 46.3 million (Q4

2017: NOK 39.4) and a recurring EBITDA of NOK -4.1 million (NOK -13.1 million).

The company maintains its 2020 forecasted revenue range of USD 20-25 million in

the U.S., up from USD 7.8 million in 2018, and sees significant continued

revenue growth and profit opportunities in the U.S. market beyond 2020.

"We closed 2018 with an acceleration in forward momentum posting another record

quarter with a revenue increase of 76% in the U.S., our largest and largely

untapped market. Notably, and key to increased Cysview future sales, one third

of the cystoscopes in the market were installed during 2018 alone. Since January

2019, we have now achieved permanent and favorable reimbursement in all settings

of care which will further support adoption of Cysview used in Blue Light

Cystoscopy when treating bladder cancer patients. We will continue to invest in

the growing, largely untapped U.S. market where we expect to see our greatest

returns in the form of significant and sustainable revenue and profitability

growth," says Daniel Schneider, President & Chief Executive Officer of

Photocure.

Photocure reported total group revenues of NOK 49.9 million in the fourth

quarter of 2018 (NOK 39.4 million), with a recurring EBITDA of NOK -4.1 million

(NOK -10.8 million). Net result was NOK -12.0 million (NOK -13.0 million), while

the cash position ended at NOK 106.8 million. The sales development in the U.S.

was strong with a unit sales increase of 69% in the quarter. The revenues in the

Nordics increased 5% to NOK 13.5 million (NOK 12.9 million) in the fourth

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

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

installed base of permanent blue light cystoscopes (BLCs) in was 149 the U.S. In

addition, 8 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 a number of

factors including inclusion in the AUA-SUO guidelines, increased patient

awareness and the improved reimbursement of Cysview. These drivers will

significantly increase penetration in the U.S. market. Furthermore, with the

approval of Cysview to be used with flexible cystoscopes, a significant market

opportunity has opened in the surveillance segment.

"Given the large untapped market opportunities, the company will continue to

invest in the U.S. commercial and medical infrastructure in 2019. Photocure is

fully funded for this market strategy. The company maintains its 2020 forecasted

revenue range of USD 20-25 million in the U.S., up from USD 7.8 million in 2018,

and sees significant continued revenue growth and profit opportunities in the

U.S. market beyond 2020," Schneider says.

Along with partner Karl Storz, Photocure has doubled the number of installed

blue light cystoscopes in the U.S. since 2016. The company believe the continued

strong installation growth rates will drive future revenue growth for Cysview.

The improved permanent reimbursement rates went into effect 1 January 2019 and

will provide physicians the ability to use Cysview in Blue Light Cystoscopy

procedures on the majority of their patients without negatively affecting their

practice economics.

"Key to our continued success is the acceleration and adoption of the newly

approved Flexible Blue Light Surveillance Cystoscopy with Cysview performed in

the larger surveillance market. Our future growth rates will also be significant

and sustainable through continued investment and focused execution," Schneider

concludes.

Please find the full financial report and presentation enclosed.

Photocure will present its fourth quarter report on Wednesday 27 February 2019

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

and representatives from the company will be Daniel Schneider, President & CEO

and Erik Dahl, CFO. The presentation will be held in English.

It will be possible to follow the presentation through

http://webtv.hegnar.no/presentation.php?webcastId=97605538.

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

conclude at 09:15 (CET).

As the presentation will be held in English, there will be no audio webcast and

conference call in the afternoon.

For further information, please contact:

Daniel Schneider

President and Chief Executive Officer

Tel: +1 508 410 8044

Email: ds@photocure.com

Erik Dahl

Chief Financial Officer

Tel: +47 450 55 000

Email: ed@photocure.no

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