Oslo, Norway, 7 November 2017: Photocure ASA (PHO.OL), today reported a revenue growth of 45% for the important US market in the third quarter of 2017, contributing to Hexvix/Cysview revenues of NOK 35.5 million (Q3 2016: NOK 31.6) and an EBITDA of NOK -0.2 million for the commercial franchise. Following the new Medicare reimbursement from 2018, Photocure increases the annual revenue ambition for 2020 to a range of USD 20 to 25 million.
"Our third quarter report demonstrates continued significant progress in our US business. The new reimbursement of Blue Light Cystoscopy with Cysview for Medicare patients, as well as the potential to expand Cysview`s label in the US show our commitment to this important market. It also confirms our desire to deliver patients better access to bladder cancer treatment. We expect the new reimbursement to drive significant growth in the future," says Kjetil Hestdal, President and Chief Executive Officer of Photocure.
Photocure reported total group revenues of NOK 35.6 million in the third quarter of 2017 (35.2), with a recurring EBITDA of NOK -9.6 million (-1.6). Net profit was NOK -10.1 million (0.1), while the cash position ended at NOK 123.1 million. Global in-market unit sales of Hexvix/Cysview increased 3% in the third quarter, impacted by a reduction of the partner business of 1% in the quarter. The sales development in the US was strong with a unit sales increase of 39%. The EBITDA for the Hexvix/Cysview commercial franchise ended at NOK -0.2 million in the third quarter of 2017.
Photocure has built considerable experience in the urology sector 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 guidelines, as well as the increased patient awareness and the changes to reimbursement of Cysview in the outpatient setting, to significantly increase penetration in the US market. CMS (United States Centers for Medicare & Medicaid Services) released in November the Final Rule stating that it will reimburse hospital outpatient departments for certain Blue Light Cystoscopy (BLC) with Cysview procedures from January 1, 2018.
"Photocure believes that in order to increase market shares in the US, an investment in the US commercial and medical infrastructure is required. As stated previously, the company plans to double its salesforce from 2016 and increase sales and marketing expenses towards the end of 2017. The goal of these efforts is to quadruple the revenues from the US operations by 2020 before the impact of Medicare reimbursement. The added reimbursement will have a positive effect on future revenues, however, the full implications of this positive change are not expected to be fully known before second half of 2018. Currently the company estimates that the added reimbursement will drive the US revenues in 2020 to a range of USD 20-25 million", says Hestdal.