Photocure ASA: Results for the second quarter of 2018
Oslo, Norway, 8 August 2018: Photocure ASA (OSE:PHO), today reported a revenue growth of 56% in local currency for the U.S. market in the second quarter of 2018, contributing to Hexvix/Cysview revenues of NOK 42.4 million (Q2 2017: NOK 37.6) and a recurring EBITDA of NOK 0.7 million (NOK -4.4 million). The company reiterates the positive outlook for the U.S. market with the reimbursement of Blue Light Cystoscopy (BLC(TM)) with Cysview, FDA approval of label expansion for Cysview and the launch of Cysview in combination with flexible cystoscopes in the surveillance of bladder cancer patients.
"Photocure delivered strong sales in the U.S. in the second quarter, following the positive regulatory and reimbursement progress. Photocure continues to invest and execute on these opportunities and reiterates the positive outlook for the important U.S. market. In addition, we have taken action to adjust the cost base and are implementing necessary organizational changes to set the stage to enter a new growth phase with focus on commercial growth and profitability," says Erik Dahl, interim Chief Executive Officer of Photocure.
Photocure reported total group revenues of NOK 45.7 million in the second quarter of 2018 (39.3), with a recurring EBITDA of NOK 0.7 million (-4.4). Net profit was NOK -17.0 million (-4.7), while the cash position ended at NOK 97.9 million. The sales development in the U.S. was strong with a unit sales increase of 49% in the quarter. The revenues in the Nordics declined 8% to NOK 10.8 million (NOK 11.7 million) in the second quarter, driven by reduced billing as distributors have reduced their inventory following the inventory increase in the first quarter. Photocure's in-market unit sales in the Nordic region in second quarter increased 1%. EBITDA for the Hexvix/Cysview commercial franchise ended at NOK 4.8 million in the second quarter of 2018. During the second quarter, Photocure experienced all time high increases in permanent blue light cystoscopes (BLCs), with 17 installations bringing the total to 130 at the end of the quarter.
Photocure has built considerable experience in the bladder cancer market through its Hexvix/Cysview franchise and sees significant long-term value creation potential in this market segment. The company aims to capitalize on the inclusion in the AUA-SUO guidelines, as well as the increased patient awareness and the changes to reimbursement of Cysview for outpatient TURBT procedures with rigid cystoscopes, to significantly increase penetration in the U.S. market. Furthermore, with the approval of the extension of the indication for BLC with Cysview to include flexible cystoscopies, a significant market opportunity has opened in the surveillance segment.
"Photocure believes that in order to increase market share in the U.S., continued investments in the U.S. commercial and medical infrastructure is required during 2018 and the company is fully funded for this market strategy. These investments will enable the company to drive the U.S. revenues in 2020 to a range of USD 20-25 million, however with upside potential driven by added reimbursement and penetration of the surveillance segment. The company will update the market on this outlook later in 2018 when there is better visibility of the effects of the new reimbursement and initial market response in the surveillance segment" says Dahl.
Please find the full financial report and presentation enclosed.
Photocure will present its second quarter report on Wednesday 8 August 2018 at Hotel Continental, Oslo, Norway. The presentation will begin at 08:30 (CET) and representatives from the company will be Erik Dahl, Interim CEO and CFO and Ambaw Bellete, President, Photocure Inc. and Head, US Cancer Commercial Operations. The presentation will be held in English.
It will be possible to follow the presentation through http://webtv.hegnar.no/presentation.php?webcastId=92017756.
A light snack will be served from 08:00 (CET). The presentation is scheduled to conclude at 09:15 (CET).
As the presentation will be held in English, there will be no audio webcast and conference call in the afternoon.
For further information, please contact:
Interim Chief Executive Officer
Tel: +47 450 55 000
Notes to editors
About Photocure ASA
Photocure, The Bladder Cancer Company, delivers transformative solutions to improve the lives of bladder cancer patients. Our unique technology, which makes 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). The US headquarters for Photocure Inc., are in Princeton, New Jersey. For more information, please visit us at www.photocure.com, www.hexvix.com or www.cysview.com