Photocure ASA

Earnings Release • Aug 18, 2020

Photocure ASA: Results for the second quarter and first half of 2020

Photocure ASA: Results for the second quarter and first half of 2020

Oslo, Norway, 18 August 2020: Photocure ASA (OSE:PHO) reported

Hexvix[®]/Cysview[®] revenues of 53.5 million in the second quarter of 2020 (Q2

2019: NOK 52.1), corresponding to growth of three per cent, despite a

significant Covid-19 impact in the beginning of the quarter in the U.S. market

before a strong recovery towards the end of the period. The company has entered

into an agreement with Ipsen Pharma SAS (Ipsen) for the return of Hexvix sales,

marketing and distribution rights from the fourth quarter of 2020 and sees

significant growth opportunities in Europe. The agreement is expected to be

EBITDA accretive from full-year 2021 and beyond.

"Our second quarter results were negatively impacted by the Covid-19 pandemic

with a significant decline in revenue at the beginning of the quarter but a

strong recovery towards the end of the quarter. We are confident that we will

return to strong growth rates with continued growth year over year once the

Covid-19 epidemic subsides. We believe that BLC with Hexvix/Cysview can play an

integral role in assuring that the first TURBT in a patient after postponement

of procedures due to Covid-19 will be complete and thorough reducing the risks

for repeat TURBT, reoccurrence and progression in that patient," says Daniel

Schneider, President & Chief Executive Officer of Photocure.

Photocure reported total group revenues of NOK 53.7 million in the second

quarter of 2020 (NOK 53.0 million), with an EBITDA before restructuring of NOK

-8.9 million (NOK -2.6 million). The Hexvix/Cysview revenues ended at NOK 53.5

million (NOK 52.1 million). The demand in the U.S. market rebounded at the end

of the quarter, with the in-market unit sales for June up 7 per cent compared to

June last year.

The installed base of rigid cystoscopes in the U.S. was 246 at the end of the

second quarter, an increase of 58 units or 31% since the same quarter last year.

Blue Light Cystoscopy (BLC[TM]) in the surveillance setting is a key priority

for Photocure in the U.S. market. By the end of the second quarter, 30 flexible

cystoscopes for the surveillance cystoscopy setting have been installed.

Cash balance of NOK 500 million

Photocure had a net cash flow from operations of NOK 11.4 million in the second

quarter of 2020 (NOK -4.0 million) and completed two private placements on 27

April and 24 June, raising a total gross of NOK 333 million. The private

placements attracted very strong interest from existing shareholders, as well as

from new high-quality institutional investors and were multiple times

oversubscribed. At the end of the quarter, Photocure had a cash balance of NOK

499.4 million (86.7).

Regains worldwide rights of Hexvix

Photocure has entered into an agreement with Ipsen for the return of Hexvix

sales, marketing and distribution rights in Europe and other markets currently

controlled by Ipsen. With taking direct control over Photocure's own

Hexvix/Cysview product in key regions, the company supports the ambition of

becoming a global leader in bladder cancer with a solid basis for expansion and

further growth opportunities. Photocure will commence the Hexvix

commercialization in Europe from the fourth quarter of 2020 and expects the

Ipsen agreement to be EBITDA accretive from full-year 2021 and beyond.

"In June, we signed the final agreement with Ipsen for the return of the

marketing and sales rights for Hexvix in various European countries. This

transaction further supports our strategy of building a strong and profitable

global business within bladder cancer. We plan to leverage the extensive

experience we have built in the U.S. and the Nordics to the markets that were

previously controlled by Ipsen. We believe there is tremendous growth and

expansion opportunities in all markets previously controlled by Ipsen. In

addition, there are many markets where Ipsen never commercialized our products

and we plan to address many of these markets in the future. In the second

quarter, we successfully raised the necessary capital to fund the required

milestone payments, training of people and working capital to transition the

European business from Ipsen to Photocure," says Schneider.

Group 2023 ambitions

Photocure delivers transformative solutions that improve the lives of bladder

cancer patients. Based on experience and the performance of the breakthrough

bladder cancer product Hexvix/Cysview, Photocure has embarked on a stepwise

approach for continued growth. Photocure sees significant long-term potential in

the global bladder cancer market and has a defined growth strategy:

.           Accelerating - Drive the breadth and depth of Hexvix/Cysview usage

in key accounts

.           Expanding - Generate sales in new geographies and product

enhancements

.           Acquiring - Products used in the management of bladder cancer

patients

.           Transforming - Partner and in-license assets to strengthen the

bladder cancer portfolio

"Based on the outlook and strategic opportunities, Photocure aims to maintain

its group revenue ambitions for 2023 in the range of NOK 1 billion with EBITDA

margins of approximately 40%, following the completion of the transaction with

Ipsen," Schneider concludes.

Please find the full financial report and presentation enclosed.

EBITDA and other alternative performance measures (APMs) are defined and

reconciled to the IFRS financial statements as a part of the APM section of the

second quarter 2020 financial report on page 22-23.

Photocure will present its second quarter 2020 report on Tuesday 18 August 2020

at 14:00 CET. The investor presentation will be streamed live and be hosted by

Daniel Schneider, CEO and Erik Dahl, CFO.

The presentation will be held in English and questions can be submitted

throughout the event. The streaming event is available through

https://channel.royalcast.com/webcast/hegnarmedia/20200818_11/. The presentation

is scheduled to conclude at 14:45 CET.

For further information, please contact:

Dan Schneider

President and CEO

Photocure ASA

Tel: + 1-609 759-6515

Email: ds@photocure.com

Erik Dahl

Chief Financial Officer

Tel: +47 450 55 000

Email: ed@photocure.no

Media and IR enquiries:

Geir Bjørlo

Corporate Communications (Norway)

Tel: +47 91540000

Email: geir.bjorlo@corpcom.no

About Photocure ASA

Photocure: The Bladder Cancer Company delivers transformative solutions to

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

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). For more information, please visit us 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.