Photocure ASA

Regulatory Filings • Apr 5, 2017

Photocure provides strategic update

Photocure provides strategic update

* Following non-conclusive partnering discussions, the company will assess

further strategic alternatives for Cevira and Visonac

* Company still to focus on urology franchise, with continued commitment to

driving growth in United States

Oslo, Norway, 5 April 2017: Photocure ASA (Photocure, OSE: PHO), today announces

that the company will assess further strategic alternatives for its non-urology

assets, Cevira and Visonac, in parallel with ongoing partner search. The company

will focus on its urology franchise and its continued commitment to driving

growth, particularly in the United States (U.S.).

The decision to initiate a broad review of possible strategic alternatives for

Cevira and Visonac follows a non-conclusive comprehensive partnering process.

Photocure has experienced substantial interest, with several possible partners

having recognised the unmet medical need in the target therapeutic areas and

engaged in thorough discussions and due diligence for both Cevira and Visonac.

However, at this stage remaining development risk is expressed as a concern for

establishing an optimal partnership for Cevira, while the current combination of

drug and device is an expressed commercial concern for Visonac. Based on the

input received in the partnering process, Photocure has decided to broaden its

review of strategic alternatives for Cevira and Visonac.

Kjetil Hestdal, President & CEO, Photocure ASA, said, "With the increasing focus

on our urology franchise, we believe now is the time to re-assess our pipeline.

While we have engaged in a comprehensive process of partnering for Visonac and

Cevira, we have been disappointed with the progress and recent feedback. That

said, while we are continuing with some discussions, we will now also assess

strategic alternatives, including a sale, spin-outs or other strategic

opportunities for these non-urology assets in the future".

Photocure announced 15 February 2017, that the company sees a significant long-

term value creation potential for its Hexvix/Cysview urology franchise. The

company aims to capitalize on the inclusion in the AUA guidelines as well as the

increased patient awareness to significantly increase penetration in the U.S.

market. The company has an ambition to quadruple the U.S. revenues to USD 15

million by 2020.

Kjetil Hestdal, continued, "We see real opportunity in our urology franchise and

we are committed to make further investments in our U.S. sales and marketing

infrastructure in the coming years to drive growth. We have built considerable

expertise in this specialist field, and believe this as an area where we have a

potential to generate significant value, for all our stakeholders".

For further information, please contact:

Photocure

President & CEO Kjetil Hestdal

Tel: + 47 913 19 535

Email: kh@photocure.no

CFO Erik Dahl

Tel: +47 450 55 000

Email: ed@photocure.no

About Photocure ASA

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

and world leader in photodynamic technology. Based on our unique proprietary

Photocure Technology(TM) platform, Photocure develops and commercializes highly

selective and effective solutions within disease areas with high unmet medical

need, such as bladder cancer, HPV and precancerous cervical lesions, colorectal

cancer and skin conditions. Our aim is to provide solutions which can improve

health outcomes for patients worldwide. Photocure is listed on the Oslo Stock

Exchange (OSE: PHO). Information about Photocure is available at

www.photocure.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.