Photocure ASA

Earnings Release • May 7, 2020

Photocure ASA: Results for the first quarter of 2020

Photocure ASA: Results for the first quarter of 2020

Oslo, Norway, 7 May 2020: Photocure ASA (OSE:PHO) announced the first quarter

2020 results in the trading update 27 April 2020, stating a revenue growth of

33% for the U.S. market in the first quarter of 2020, contributing to

Hexvix[®]/Cysview[®] revenues of NOK 54.4 million (Q1 2019: NOK 51.2 million)

and an EBITDA of NOK -4.8 million (NOK -1.5 million). The company has agreed

terms 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.

"Photocure had a strong first quarter in spite of the impact from the Covid-19

health crisis challenges. The continued strong U.S. sales momentum is the driver

behind the positive development. Last week, we have agreed terms with Ipsen for

gaining global rights back for Hexvix. This is a significant and transformative

agreement in progressing our strategy of building a strong and profitable global

business within bladder cancer. We have built a successful commercial

organization for Hexvix/Cysview in the U.S. and the Nordics, with strong

underlying business growth. Photocure aims to apply our deep knowledge and

experience acquired in Nordic and U.S. markets to our newly regained European

territories and in addition sees significant growth opportunities in Europe and

other markets currently not served by Ipsen, " says Daniel Schneider, President

& Chief Executive Officer of Photocure.

Photocure reported total group revenues of NOK 55.0 million in the first quarter

of 2020 (NOK 52.2 million), with an EBITDA of NOK -4.8 million (NOK -1.5

million) and a cash position of NOK 127.6 million at the end of the period. The

Hexvix/Cysview revenues ended at NOK 54.4 million in the first quarter of 2020

(NOK 51.2 million), driven by a revenue growth of 21% in USD for the U.S.

market. The installed base of rigid cystoscopes in the U.S. was 211 at the end

of the first quarter, an increase of 51 units or 32% since the same quarter last

year, and 27 flexible cystoscopes for the surveillance cystoscopy setting.

Regains worldwide rights of Hexvix

27 April 2020 Photocure announced 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 reinforces the ambition of

becoming a global leader in bladder cancer by creating a global business

platform for further growth and expansion opportunities. Following a final

agreement, Photocure will begin direct sales and marketing efforts in the fourth

quarter of 2020 and expects the potential Ipsen agreement to be EBITDA accretive

from full-year 2021 and beyond.

"The agreement will provide a platform for growth and we see the terms as

financially highly attractive. The agreement is expected to be EBITDA accretive

from full-year 2021 and beyond. Photocure sees major opportunities in Europe for

accelerated growth and expansion going forward, " says Schneider.

The parties have entered into a term sheet setting out the key terms and

conditions for an agreement. Pursuant to the term sheet, Photocure will, by the

fourth quarter of 2020, pay Ipsen EUR 15 million and at the same date regain all

Hexvix marketing rights from Ipsen. Ipsen will book sales up until these dates.

Ipsen will in addition receive earn-out payments in the range of 10-15% of sales

(years 1-7 post-termination) and 7.5% of sales (years 8-10) in the current Ipsen

markets. Photocure conducted a private placement 27 April 2020 raising NOK 143

million in gross proceeds. Reference is made to OSE notifications 27 and 28

April regarding the private placement and the use of proceeds.

Outlines updated potential group 2023 ambitions

Photocure delivers transformative solutions which 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 to continued growth. Photocure sees significant long-term value

creation potential in the global bladder cancer market and has developed 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

The primary growth geographies for Photocure are the U.S. and European markets

with large untapped market opportunities. The company will regain the sales and

marketing rights from Ipsen in 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.

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

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

margins of approximately 40%, following the completion of the potential

transaction, " 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

first quarter 2020 financial report on pages 20-21.

Photocure will present its first quarter 2020 report on Thursday 7 May 2020 at

15:00 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/20200507_6/ The presentation

is scheduled to conclude at 15:45 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.