Vistin Pharma — Interim / Quarterly Report 2016

Oct 31, 2016

VISTIN PHARMA ASA THIRD QUARTER 2016 RESULTS PUBLISHED 31 OCTOBER 2016

CONTENTS

Vistin Pharma in brief2
Overview 3
Financial review 6
Operational review7
Market developments 9

Risks and uncertainties 11
Outlook 11
Share information 12
Condensed Interim Financial Statements 13

Vistin Pharma in brief

Vistin Pharma is a Norwegian pharmaceutical company producing Active Pharmaceutical Ingredients (APIs) and solid dosage forms for the global pharmaceutical industry.

The Group was established in 2015 when Vistin Pharma AS, a wholly owned subsidiary of Vistin Pharma ASA, acquired the B2B business and tablet production assets from Weifa AS. Vistin Pharma also signed a five-year agreement with Weifa AS for the manufacture of its key pain relief brands, such as Paracet, Ibux and Paralgin forte. The transaction was completed on 1 June 2015. Vistin Pharma conducted an equity issue of about NOK 170 million to finance the acquisition and to secure working capital, and the shares of Vistin Pharma ASA were listed on Oslo Axess on 10 June 2015.

With more than 75 years of pharmaceutical industry experience, the Group has built significant capacity and expertise as an API and Solid Dosage Form provider to producers all over the world, and Vistin Pharma's APIs are marketed in more than 50 countries.

Vistin Pharma has key positions and growth potential in the international Metformin and Opioid markets, and a strong foundation for creating a highly efficient CMO business.

The Group has more than 140 employees and two manufacturing facilities in Kragerø, Norway. Both of the facilities are certified in accordance with current Good Manufacturing Practice (cGMP). The company's head office is located in Oslo, Norway.

Overview

Third quarter highlights

• Metformin: Strong underlying growth despite drop in revenue in Q3
• Revenue of NOK 39.3 million for the quarter vs. NOK 44.1 million last year
• Year to date revenue up 5 percent
• Production plant running at full capacity expansion project initiated
• Opioids: Stable volumes but lower prices
• Revenue of NOK 18.6 million for the quarter vs. NOK 20.2 million last year
• Challenging market conditions but increase in demand from certain key customers
• Tablets contributing to 37 percent of revenue, compared to 29 percent last year
• CMO: Improved profitability
• Revenue of NOK 30.4 million for the quarter vs. NOK 27.7 million last year
• 2016 sales volumes expected at 750 million tablets (+15 percent)
• Ongoing operational excellence program converted to increased capacity and material cost savings expected in 2017
• Financial performance
• Group EBITDA of NOK 7.3 million for the third quarter
• Cash balance at 30 September of NOK 73 million, and no interest-bearing debt
• NOK 120 million capacity expansion investment to be financed through existing cash reserves, cash generation and debt

Key figures

Key financial information for Vistin Pharma ASA (business operations commenced 1 June 2015)

(NOK 1 000)	Q3 2016	Q3 2015	YTD2016	YTD2015	FY 2015
Total revenue and income	88 237	91 986	301 130	123 356	227 892
EBITDA	7 318	11 974	30 956	14 836	27 883
Depreciation, amortisation and impairment	(1 052)	(686)	(2 943)	(867)	(1 568)
Net finance income/(expense)	(573)	1 042	(419)	1 267	(100)
Profit/(loss) before tax	5 693	12 330	27 594	15 236	26 215
Profit/(loss)	4 270	9 001	20 695	11 123	19 122
Key figures per segment
(NOK 1 000)	Q3 2016	Q3 2015	YTD2016	YTD2015	FY 2015
Total revenue and income
B2B	57 855	64 269	209 556	88 385	150 327
CMO	30 381	27 717	91 573	34 971	68 898
HQ & other	-	-	-	-	8 667
Total revenue and income	88 237	91 986	301 130	123 356	227 892
EBITDA
B2B	6 710	11 713	28 399	16 100	18 907
CMO	1 437	1 064	4 387	869	4 423
HQ & other	(827)	(803)	(1 829)	(2 133)	4 553
EBITDA	7 319	11 974	30 956	14 836	27 883

The following information is provided for information purposes and presents the key financial figures for the B2B segment, as reported by Vistin Pharma ASA (from 1 June 2015), Weifa ASA (before 1 June 2015) and Weifa AS (before to 15 August 2014). No additional information is provided for the CMO segment, as this is a new segment following the acquisition of the tablet production assets from Weifa.

(NOK million)	Q3 2016	Q3 2015	YTD 2016	YTD 2015	FY 2015
Revenue	57,9	64,3	209,6	195,8	255,3
EBITDA	6,7	11,7	28,4	21,9	24,8

Note: The above figures are provided for information purposes and presents the key financial figures for the B2B segment, as reported by Vistin Pharma ASA (from 1 June 2015), Weifa ASA (before 1 June 2015) and Weifa AS (before 15 August 2014).

CMO segment revenues (NOK million)

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

CMO segment EBITDA (NOK million)

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Financial review

Vistin Pharma ASA was established in February 2015, and the Group had no operating activities prior to Vistin Pharma AS' acquisition of the B2B business and tablet production assets from Weifa AS on 1 June 2015. Hence, most of the figures presented in the consolidated interim financial statements represent the financial result of the B2B and CMO business acquired from 1 June 2015.

Vistin Pharma ASA (Group)

Profit and loss

Vistin Pharma had total revenue and other income of NOK 88.2 million in the third quarter 2016, compared to NOK 92.0 million in the third quarter 2015.

EBITDA came to NOK 7.3 million for the third quarter, compared to NOK 12.0 million for the same quarter last year. The reduction in EBITDA is principally due to lower revenue compared, and the timing of certain operating expenses in the third quarter last year.

Depreciation and amortisation were NOK 1.1 million for the third quarter, compared to NOK 0.7 million for the third quarter last year.

Net financial loss was NOK 0.6 million, compared to a net gain of NOK 1.0 million in the same quarter last year. The financial loss primarily reflects net unrealised foreign exchange losses for the quarter.

Vistin Pharma had an income tax expense of NOK 1.4 million in the third quarter, compared to NOK 3.3 million in the third quarter last year.

Net profit for the quarter was NOK 4.3 million, corresponding to earnings per share of NOK 0.25, compared to NOK 9.0 million and NOK 0.53 respectively for the same quarter last year.

Cash Flow

Net cash flow from operating activities in the third quarter was positive NOK 18.0 million. A net profit before tax of NOK 5.7 million for the quarter, and a large reduction in trade receivables following large sales in the second quarter, contributed to the positive operating cash flow. Net cash flow from operating activities in the third quarter last year was negative NOK 22.2 million.

Net increase in cash and cash equivalents amounted to NOK 17.0 million, compared to a decrease of NOK 26.5 million for the same quarter last year.

Financial position

Vistin Pharma had total assets of NOK 271.0 million as of 30 September 2016. Cash and cash equivalents amounted to NOK 72.7 million. The figures as of 30 September 2015 were NOK 246.9 million and NOK 18.1 million, respectively.

Total equity as of 30 September 2016 was NOK 194.4 million, compared to NOK 175.9 million as of 30 September 2015. This corresponds to an equity ratio of 71.7 percent (71.2 percent).

Vistin Pharma had no interest-bearing debt as of 30 September 2016.

On 30 August, the Company announced a NOK 120 million capacity expansion of its metformin plant. This investment will be financed through existing cash reserves, cash generation and debt.

Operational review

Vistin Pharma's operations consist of the following two segments: B2B (production and sale of active pharmaceutical ingredients) and CMO (contract manufacturing of finished dose tablets). The B2B segment has two major product groups; Metformin and Opioids. The CMO segment started operations on 1 June 2015 and has no comparable figures for periods prior to that. The segment currently only consists of the CMO agreement with Weifa AS. The operations in the B2B segment represent a continuation of activities previously carried out and reported in Weifa ASA. Since Vistin Pharma acquired this business on 1 June 2015, pro-form historical figures have been included for periods prior to that date to provide a better understanding of operational developments. However, these figures are based on data from Weifa ASA and reflect a different corporate structure and cost base, which means they are not directly comparable.

B2B

Vistin Pharma is a recognised supplier of Active Pharmaceutical Ingredients (APIs) and finished dosage forms (FDFs) to the global pharmaceutical industry. The B2B offering is based on two key product areas: metformin and opioids. Metformin is an API used in firstline treatment of type 2 diabetes. Opioids are used in pain treatment as well as in cough suppressants. The APIs are produced at Vistin Pharma's two manufacturing plants in Kragerø (Fikkjebakke and Gruveveien) in southern Norway. Vistin Pharma's B2B customers are international pharmaceutical companies.

Total revenue for the B2B segment in the third quarter was NOK 57.9 million, compared to NOK 64.3 million in the same quarter last year.

The reduction in revenue for the quarter is mainly explained by lower sales volume of metformin API following particularly large sales in the second quarter this year and a maintenance shut down during the quarter.

Sales volumes of opioids for the quarter were slightly higher than in the same quarter last year.

B2B sales volumes may typically fluctuate significantly during the year, however underlying growth in the B2B segment is strong and total revenue for the first nine months of 2016 was NOK 209.6 million, compared to NOK 195.8 million for the same period last year.

In order to improve business profitability, Vistin Pharma continuously seeks to achieve operational excellence, in part through capacity, quality and cost improvement programs. In addition, it focuses on business development and strategic partnership opportunities to continue growing the business.

Metformin

Revenue from metformin was 39.3 million for the quarter. This is 10.9 per cent lower than the third quarter 2015, primarily because of lower sales volumes following a second quarter with record sales.

Vistin Pharma has sales contracts covering approximately 100 percent of its metformin production capacity in 2016. With aggressive growth ambitions, the Company decided to invest in a doubling of the current 3,000 metric tonnes capacity.

Vistin Pharma continues to find that the quality of its metformin products, its service and delivery performance are competitive advantages and drivers for increased sales, and the Group is experiencing a strong underlying growth. Key drivers are continued volume growth from existing multinational customers and a successful market expansion in Japan.

Vistin Pharma provides some of the purest and most free-flowing metformin qualities on the market. A free-flowing product is easier to process into tablets than an API which has hardened. The Group's plant at Fikkjebakke is dedicated to manufacturing metformin. It has been approved by several international regulatory bodies and by the US Food and Drug Administration (FDA). Vistin Pharma is currently one of few European companies with a listed metformin Drug Master File (DMF) in the USA. Accelerating in this premium market is another focus area for Vistin Pharma.

To strengthen the Company's market activities in the USA, Vistin Pharma has signed an agreement with a second distributor in the third quarter, which will focus on specific key accounts.

Vistin Pharma's metformin strategy is to become the dominant supplier of metformin API to customers in the premium product segments.

According to Vistin Pharma's estimates, the Group currently controls about eight percent of the global metformin market with its annual manufacturing capacity of 3,000 metric tonnes.

To secure the necessary production capacity to meet the expected future long-term demand for metformin HCl, both from existing and new customers, the Company announced in August that it had decided to increase the production capacity at the Fikkjebakke site by 3,000 metric tonnes.

This capacity increase will require an investment of approximately NOK 120 million, which will be financed through existing cash reserves, cash generation and debt. The new production line is expected to be fully operational from 2019, and the project is progressing according to plan.

In parallel, the Company is working on stretching the current capacity by approximately 500 MT (+16-17 percent capacity increase) through an efficiency program. The objective is to ensure that Vistin Pharma can meet the expected increase in demand in the short-term.

With the new production capacity, the Company is targeting a share of approximately 15 percent of the global Metformin API market.

Opioids

Opioids revenue for the third quarter was NOK 18.6 million, compared to NOK 20.2 million in the third quarter of 2015. The total volume sold in the third quarter was marginally higher than the volume sold in the third quarter last year, but prices for API were down by approximately 10 percent. Revenue from the sale of codeine tablets constituted approximately 37 percent of the opioid revenue for the third quarter 2016, compared to approximately 29 percent in the same quarter last year.

As reported in previous quarters, there still is considerable price pressure and supply–demand instability in the opioid market, resulting in lower API prices compared to last year. Despite a challenging global market for opioids, Vistin Pharma is experiencing some increase in demand from key customers, in selected markets.

The plant in Gruveveien manufactures opioid APIs, as well as finished dose tablets. Vistin Pharma serves the global market for opioid APIs with two key products; codeine (used in strong painkillers and cough medicine) and pholcodine (used in cough medicine). It also produces finished dose painkiller combination tablets such as Paralgin forte (paracetamol plus codeine) for Weifa and several codeine and codeine combination products for a B2B customer.

According to management estimates, Vistin Pharma has a global share of about seven percent of the codeine API market. About half of the global market is made up of closed markets with import restriction, which Vistin Pharma currently is unable to enter. These markets include the USA, South Africa, France and Spain.

CMO

The CMO tablet manufacturing business produces finished products at the Gruveveien multipurpose tablet facility based on a long term supply agreement with Weifa. Vistin Pharma has a five-year agreement with Weifa AS for the manufacture of its key pain relief brands, such as Paracet, Ibux and Paralgin forte. This currently represents the Group's main CMO activity.

CMO tablet manufacturing was not established as a separate business area until 1 June 2015. However, the Vistin Pharma organisation has produced finished dose tablets for Weifa and other external customers for many years, while being a part of Weifa. Therefore, the Group is an experienced CMO. Revenue for this segment was NOK 30.4 million for the third quarter, and the corresponding EBITDA was NOK 1.4 million. The revenue and the EBITDA for the same quarter last year were NOK 27.7 million and NOK 1.1 million respectively. The service level for the third quarter was 100 percent (customer orders delivered on time and in full).

The increase in EBITDA is primarily due to marginally higher sales volumes and changes in product mix at the manufacturing plant.

The 2016 production volume is estimated to be approximately 750 million tablets, which is an increase of approximately 15 percent compared to last year. Through the ongoing operational excellence program, Vistin Pharma's target is to be able to produce approximately 1.2 billion tablets. The productivity gains achieved will be used for increased sales volume to existing and new FDF customers, and through material cost savings, which are expected from 2017 and onwards.

Market developments

B2B

Metformin tablets are the most widely prescribed diabetes medication in the world. Approximately 90 percent of people with diabetes are affected by Type 2 Diabetes (hereinafter T2D). T2D usually occurs in adults, but is increasingly seen in children and adolescents. The growth in T2D is associated with ageing populations, economic development, increasing urbanisation, less healthy diets and reduced physical activity. While a human body suffering from T2D is still able to produce insulin, it becomes resistant so that the insulin is ineffective. Over time, insulin levels may subsequently become insufficient. Both the insulin resistance and the deficiency lead to high blood glucose levels. According to the International Diabetes Federation (IDF), today more than 387 million people are estimated to be living with this condition. The number is expected to increase to 592 million by 2035. Metformin has limited side effects, a long-term safety profile in addition to being an affordable treatment alternative. Therefore, Metformin is the preferred first line treatment for T2D patients. Metformin is expected to maintain its position as the Gold Standard treatment in the foreseeable future (GlobalData, 2016). The market is expected to grow by seven to eight percent per annum for many years to come. Global diabetes healthcare costs amounted to USD 612 billion in 2014, representing 11 percent of total healthcare costs worldwide in 2014. These costs are projected to exceed USD 627 billion by 2035. Close to 5 million people died from diabetes last year.

The Metformin's global finished product sales is estimated to increase from USD 2.9 billion USD in 2015 to around USD 4.3 billion in 2025. The significant growth driver is an increasing T2D prevalence.

The market is highly competitive, with manufacturers mainly from India and China, and approximately 65 percent of the global metformin volume is currently produced in India. Many producers of metformin are operating multipurpose facilities, and there is an underlying unused capacity among the metformin producers that can absorb the growing demand for metformin. Vistin Pharma is focusing on customers in the "protected application" and "large account professional generics" market segments, and finds that customers in Europe, Japan and other developed economies value suppliers with short lead times, high quality products, agile operations and regularity of supply.

The global opioid sector is a protected market, tightly controlled by the International Narcotics Control Board (INCB). Several major markets are also subject to import quotas. Growth in the use of opioids is stable worldwide and demand, measured by defined daily doses, has increased more than threefold over 20 years (corresponding to a compound annual growth rate (CAGR) of 6.5 percent). The main industry drivers are longer life expectancies – increasing incidence of chronic diseases, increased worldwide access to pain relief treatments, from moderate to severe grade and new product releases of narcotic derivatives for nonpain treatment such as obesity, alcoholism, constipation and antitumoral. Emerging countries represent the biggest expansion potential, as rising wealth drives demand for pain medication. According to WHO report 2015, only one quarter of the world's population has access to pain relief treatments China and India are expected to be the fastest growing opioids markets by 2020. According to INCB, global consumption of opioids for pain relief is unevenly distributed with the US, Western Europe and Oceania, representing only 17 percent of the global population, consuming 92 percent of the volume. Global manufacturing of codeine API has grown by about 6.4 percent annually to more than 400MT, but a more moderate growth of 1 - 2 percent is expected in the coming years, primarily as a result of tighter restrictions in the USA and India. About 70 percent of the volume is consumed as codeine, while roughly 20 percent is used to make other APIs.

According to the INCB, the global production of opiate raw materials rich in morphine exceeded global demand in 2015, resulting in high inventory levels. For 2016, cultivation is expected to decrease in most major producing countries, compared to 2015, which may help to balance supply and demand in the medium term.

European opioid API suppliers are few in number. Vistin Pharma's main competitors have access to their own raw materials, and a small number of raw material producers control most of the global supply. Vistin Pharma is the largest independent company with both inhouse API and tablet manufacturing capabilities and competencies (forward integrated).

CMO

Vistin Pharma will seek to increase tablet manufacturing volumes, acting as an independent supplier of generic FDFs to the global generic and proprietary pharmaceutical industry by establishing itself as an FDF contract development and manufacturing organisation (CDMO) strategic partner. According to Mordor Intelligence LLP (Global Pharmaceutical Manufacturing Market), the global CMO market is estimated at USD 41 billion and is expected to grow at a CAGR of 10 –11 percent by 2017. Key growth drivers are; outsourcing by companies that do not see supply chain as a core business area, margin pressure in both the innovative and generic pharma market, and pharma industry consolidation leading to post-merger cost saving initiatives.

The Group's focus on maintaining operational excellence to make the supply chain costcompetitive, expand product offerings, and grow volumes and customer base in order to capture additional economies of scale, continues.

Risks and uncertainties

Vistin Pharma is exposed, as a pharmaceutical manufacturing company, to several types of risks, where fluctuations in the price and availability of raw materials and the development in foreign exchange (USD and EUR) are among the most prominent. Therefore, risk management is a priority area for the Group. The EUR currency exposure (cash inflow) for 2016 has been hedged at an average rate of EUR/NOK 9.45.

In addition, risk related to regulatory changes and environmental issues concerning emission levels and emission permits represent central risk factors to the Group.

Currently, Weifa is the Group's only customer in the CMO segment. Any material reduction in the sales of Weifa products produced by Vistin Pharma will consequently have a negative impact on the financial results of the CMO segment.

For further information, please refer to the Annual Report for 2015, available on the Group's website www.vistin.com.

Outlook

The metformin business is experiencing growing demand as a result of favourable overall market developments, with a strong underlying growth for metformin globally, and because of Vistin Pharma's position as a premium supplier. Vistin Pharma expects this trend to continue in the foreseeable future. As a result, the Company has decided to increase the current production capacity by another 3,000MT, a doubling from the current capacity. The expansion will be financed through existing cash reserves, cash generation and debt.

Long-term drivers for the opioid market indicate an attractive future growth potential. However, price pressure and an unstable demand and supply in the global opioid market will affect prices and volumes for Vistin Pharma in the short term. This will partly be offset by strategic long-term narcotic raw material supply agreements and business partnerships with raw-material producers, securing raw materials at competitive prices.

The CMO business continues to perform according to plan, and Vistin Pharma foresees a stable profitable performance. However, the Company has initiated an operational excellence program with a strong focus on future cost reductions, to significantly grow the tablet production volume in a competitive global market.

Share information

The company had 17 054 935 issued shares on 21 October 2016. The 20 largest shareholders controlled 73 percent of the total number of outstanding shares.

Largest shareholders at 21 October 2016

NAME	SHAREHOLDING % SHARE
STRATA MARINE & OFFSHORE*		1 965 943 11,53 %
QVT FUND V		1 869 797 10,96 %
STOREBRAND VEKST	1 403 960	8,23 %
MP PENSJON PK	877 870	5,15 %
SOLAN CAPITAL AS	787 482	4,62 %
SKANDINAVISKE ENSKILDA	779 352	4,57 %
FERNCLIFF LISTED DAI*	582 282	3,41 %
HOLBERG NORGE	573 349	3,36 %
PENSJONSORDNINGEN FOR APOTEKVIRKSOMHET	500 000	2,93 %
DUKAT AS	472 500	2,77 %
QVT FUND IV	436 273	2,56 %
CIPRIANO AS*	375 538	2,20 %
SPETALEN ØYSTEIN STRAY*	323 650	1,90 %
TVENGE TORSTEIN INGVALD	300 000	1,76 %
QUINTESSENCE FUND	242 740	1,42 %
SVENSKA HANDELSBANKEN	240 000	1,41 %
NORDBY KJELL ERIK**	200 000	1,17 %
BORGEN INVESTMENT GRUPPEN	185 736	1,09 %
GRANT INVEST AS	184 407	1,08 %
STATOIL PENSJON	166 138	0,97 %
Total 20 largest shareholders	12 467 017	73,1%
Other shareholders	4 587 918	26,9%
Total number of shares	17 054 935	100,0%

* Board members of Vistin Pharma, or companies controlled by Board members

** Executive management

Consolidated Statement of Comprehensive Income

(NOK 1 000)	Q3 2016	Q3 2015	YTD2016	YTD2015	FY 2015
Revenue	87 173	91 986	299 706	123 356	218 367
Other income	1 063	-	1 424	-	9 525
Total revenue and income	88 237	91 986	301 130	123 356	227 892
Cost of materials	34 131	31 495	117 162	43 703	81 646
Payroll expenses	31 337	30 022	95 742	39 414	71 081
Other operating expenses	15 451	18 495	57 269	25 403	47 282
Depreciation, amortisation and impairment	1 052	686	2 943	867	1 568
Operating profit/(loss)	6 266	11 288	28 013	13 969	26 315
Finance income	-	1 223	-	1 552	444
Finance costs	573	181	419	285	544
Profit/(loss) before tax	5 693	12 330	27 594	15 236	26 215
Income tax expense	1 423	3 329	6 898	4 114	7 093
Profit/(loss) for the period	4 270	9 001	20 695	11 123	19 122
Total comprehensive income for the period	4 270	9 001	20 695	11 123	19 122
Earnings per share (NOK): basic	0,25	0,53	1,21	0,65	1,12
Earnings per share (NOK): diluted	0,25	0,53	1,21	0,65	1,12

Consolidated Statement of Financial Position

(NOK 1 000)	Note	30.09.2016	30.09.2015	31.12.2015
ASSETS
Non-current assets
Property, plant & equipment		46 202	36 698	41 331
Deferred tax assets		-	-	-
Total non-current assets		46 202	36 698	41 331
Current assets
Inventory		86 711	100 561	92 712
Trade receivables		57 005	66 710	54 760
Other receivables		8 416	24 857	8 216
Cash & cash equivalents	5	72 709	18 107	61 989
Total current assets		224 841	210 235	217 677
Total Assets		271 043	246 933	259 008
EQUITY AND LIABILITIES
Equity
Share capital	3	17 055	17 055	17 055
Share premium		137 514	147 747	147 747
Retained earnings		39 818	11 123	19 122
Total equity		194 386	175 924	183 924
Non-current liabilities
Deferred tax liabilities		6 950	1 988	52
Other long-term liabilities		10 332	9 485	10 332
Total non-current liabilities		17 283	11 473	10 384
Current liabilities
Trade payables		29 729	27 829	28 190
Tax Payables		-	-	4 915
Other current liabilities		29 646	31 707	31 595
Total current liabilities		59 375	59 536	64 700
Total liabilities		76 658	71 009	75 084
Total Equity and Liabilities		271 044	246 933	259 008

Statement of Changes in Equity

		Share	Share	Retained
(NOK 1 000)	Note	capital	premium		earnings Total equity
Equity as at 06.03.2015		1 000	-	-	1 000
Total comprehensive income		-	-	11 123	11 123
Issue of share capital
Rights- and employee offering, June		17 055	153 494	-	170 549
Share capital reduction, June		(1 000)	-	-	(1 000)
Share issue costs		-	(5 748)	-	(5 748)
Equity as at 30.09.2015		17 055	147 746	11 123	175 924
Equity as at 31.12.2015		17 055	147 747	19 122	183 924
Equity as at 01.01.2016		17 055	147 747	19 122	183 924
Total comprehensive income		-	-	20 695	20 695
Dividend paid		-	(10 233)	-	(10 233)
Equity as at 30.09.2016		17 055	137 514	39 818	194 387

Cash Flow Statement

(NOK 1 000) Note	Q3 2016		Q3 2015 YTD2016	YTD2015	FY 2015
Cash flow from operating activities
Net profit/(loss) before income tax	5 693	12 330	27 594	15 236	26 215
Income tax paid	-	-	(4 915)	-	-
Non-cash adjustment to reconcile profit before tax to cash flow:
Depreciation, amortisation and impairment	1 052	686	2 943	867	1 568
Unrealised foreign currency (gains)/losses	661	301	(778)	280	2 421
Changes in working capital:
Changes in trade receivables and trade creditors	15 866	(31 904)	(707)	(29 499)	(22 612)
Changes in inventory	(555)	(9 546)	6 001	(18 900)	(11 051)
Changes in other accruals	(5 293)	6 945	(1 733)	15 220	34 382
Finance (income)/expense	573	(1 042)	420	(1 267)	100
Net cash flow from operating activities	17 996	(22 230) 28 824		(18 063)	31 023
Cash flow from investing activities
Purchase of equipment	(979)		(4 110) (7 814)	(6 507)	(11 840)
Acquisition of business	-	-	-	(120 000)	(120 000)
Interest received	-	-	-	-	130
Net cash flow from investing activities	(979)		(4 110) (7 814)	(126 507)	(131 710)
Cash flow from financing activities
Proceeds from share issue	-	-	-	171 549	171 549
Transaction costs on the issue of shares	-	(111)	-	(7 872)	(7 873)
Repayment of capital	-	-	-	(1 000)	(1 000)
Dividend paid	-	-	(10 233)	-	-
Interest paid	(18)	-	(56)	-	-
Net cash flow from financing activities	(18)	(111)	(10 289)	162 677	162 676
Net change in cash and cash equivalents	16 999	(26 451) 10 720		18 107	61 989
Cash and cash equivalents beginning period	55 710	44 558	61 989	-	-
Cash and cash equivalents end period	72 709	18 107	72 709	18 107	61 989

Notes to the Condensed Interim Financial Statement

1. Basis of presentation

The financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"). This financial information should be read together with the financial statements for the year ended 31 December 2015, prepared in accordance with International Financial Reporting Standards ("IFRS"). The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. The figures are unaudited.

The preparation of the Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities at the date of the Interim Financial Statements. If in the future such estimates and assumptions, which are based on management's best judgment at the date of the Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.

2. Segment reporting

(NOK 1 000)	Q3 2016	Q3 2015	YTD2016	YTD2015	FY 2015
Total revenue and income
B2B	57 855	64 269	209 556	88 385	150 327
CMO	30 381	27 717	91 573	34 971	68 898
HQ & Other	-	-	-	-	8 667
Total revenue and income	88 237	91 986	301 130	123 356	227 892
EBITDA
B2B	6 710	11 713	28 399	16 100	18 907
CMO	1 437	1 064	4 387	869	4 423
HQ & Other	(827)	(803)	(1 829)	(2 133)	4 553
EBITDA	7 319	11 974	30 956	14 836	27 883
Operating assets
(NOK 1 000)	30.09.2016		30.09.2015		31.12.2015
B2B	139 240		162 424		150 092
CMO	46 937		44 704		34 936
HQ & Other	84 865		39 805		73 980
Total segments	271 043		246 933		259 008
Operating liabilities
(NOK 1 000)	30.09.2016		30.09.2015		31.12.2015
B2B	23 912		17 439		16 415
CMO	120		(443)		(115)
HQ & Other	45 675		52 025		53 817
Total segments	69 706		69 021		70 117
Reconciliation of assets
(NOK 1 000)	30.09.2016		30.09.2015		31.12.2015
Segment operating assets	271 043		246 933		259 008
Deferred tax assets	-		-
Total operating assets	271 043		246 933		259 008
Reconciliation of liabilities
(NOK 1 000)	30.09.2016		30.09.2015		31.12.2015
Segment operating liabilities	69 706		69 021		70 117
Tax Payable	-		-		4 915
Deferred tax liabilities	6 950		1 988		52
Total operating liabilities	76 657		71 009		75 084

3. Share capital

	Number of shares (1 000)	Share capital (NOK 1 000)
At 6 March 2015	1 000	1 000
Rights- and employee offering, June	17 055	17 055
Share capital reduction, June	1 000	1 000
At 30 September 2015	17 055	17 055
At 31 December 2015	17 055	17 055
At 30 September 2016	17 055	17 055

4. Interest-bearing debt

Vistin Pharma ASA has no interest bearing debt as of 30 September 2016. The Group has a credit facility of NOK 25 million with Nordea Bank. No amount was drawn at 30 September 2016.

5. Cash and cash equivalents

(NOK 1 000)	30.09.2016	30.09.2015	31.12.2015
Cash at bank	72 709	18 107	61 989
Cash and cash equivalents	72 709	18 107	61 989

Cash at banks earns interest at floating rates based on daily bank deposit rates. As of 30 September 2016 NOK 4.0 million (USD 0.5 million) and NOK 5.2 million (EUR 0.6 million) of the cash at bank was denominated in USD and EUR respectively.

The Group has a restricted bank account of NOK 3.0 million relating to employees withholding taxes. In addition, the Group has a guarantee provided by Nordea for the same of NOK 6.5 million.