Photocure ASA

Related Party Transaction • Aug 18, 2014

Photocure provides an update on Lumacan partnership

Photocure provides an update on Lumacan partnership

Oslo, Norway, 18 August 2014: Photocure ASA (OSE: PHO), a specialty

pharmaceutical company focused on photodynamic technologies in dermatology and

cancer, announces today that Photocure and Salix Pharmaceuticals (Salix) have

agreed to terminate the global licensing agreement for Lumacan®, which is in

early stage developmentto increase the detection rate of colorectal cancer

through photodynamic diagnosis.

Following the proposed merger agreement between Salix and Cosmo Pharmaceuticals

S.p.A. ("Cosmo"), under which Salix will combine with Cosmo Technologies

Limited, a subsidiary of Cosmo, Photocure has agreed the termination under the

following terms: Photocure will receive a payment of US$ 5M from Salix and will

regain the global rights and all intellectual property to Lumacan.

Photocure entered into a development and commercialization agreement with Salix

in 2010, granting Salix an exclusive global license for Lumacan.

Kjetil Hestdal, President and CEO of Photocure, said: "We believe Lumacan has

the potential to deliver clinically meaningful improvement in the battle against

colorectal cancer. We are now evaluating all options to secure the further

development and optimal value for Lumacan."

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

Hume Brophy

Mary Clark, Hollie Vile, Supriya Mathur

Tel: +44 20 3440 5653, Email: photocure@humebrophy.com

Notes to editors

About Photocure ASA

Photocure ASA, 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.

About Lumacan(®)

Lumacan is being developed to increase the detection rate of polyps and

colorectal cancer through fluorescence diagnosis. Colorectal cancer is

traditionally diagnosed through colonoscopies (visual examination) with white

light. The market for colonoscopies is growing as a result of extensive patient

screening programs in Europe and USA. In the US, it is estimated that

approximately 14 million colonoscopies are being carried out annually for

screening of colorectal cancer. At the same time, it is increasingly being

recognized that standard white-light colonoscopy has considerable limitations

when it comes to optimal detection of colorectal cancer.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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