Annual
Report
WWW.PHOTOCURE.COM
2024
VISION
Leading change
in bladder
cancer
MISSION
To deliver
transformative
solutions to improve
the lives of bladder
cancer patients
Annual Report Photocure 2024
3
Contents
Vision and Mission .......................................................................................................................................................................................................... 2
2024 in brief ............................................................................................................................................................................................................................ 4
CEO letter ................................................................................................................................................................................................................................... 6
Board of Directors Report 2024 .................................................................................................................................................................... 8
Confirmation from the Board of Directors and CEO ............................................................................................................ 20
The Board of Directors .............................................................................................................................................................................................. 21
Corporate Governance Policy and Annual Review ................................................................................................................ 24
Financial Statements................................................................................................................................................................................................... 31
Accounting principles 2024 ................................................................................................................................................................................. 38
Notes to the financial statements for 2024 .................................................................................................................................... 43
Auditors’ Report ................................................................................................................................................................................................................. 68
Alternative Performance Measures ......................................................................................................................................................... 76
Financial Calendar .......................................................................................................................................................................................................... 78
ESG Report / Sustainability Statement ................................................................................................................................................ 79
General information............................................................................................................................................................................................. 81
Environmental information........................................................................................................................................................................... 90
Social information .................................................................................................................................................................................................. 94
Governance information ................................................................................................................................................................................. 104
Appendix 1: Transparency Act statement 2024 ..................................................................................................................... 106
4
Annual Report Photocure – Results 2024
2024
in brief
Commercial Franchise
2024
FY
2023
FY
Europe revenues 285.6 263.5
North America revenues 202.3 178.6
Other sales revenues 3.8 4.0
Total sales revenues 491.7 446.2
Signing fee and milestones 33.7 54.4
Total revenues 525.4 500.7
Gross profit 494.7 474.5
Operating expenses -445.5 -419.0
EBITDA 49.2 55.5
Depreciation & Amortization -28.8 -27.7
EBIT 20.4 2 7.8
Net financial items -12.0 -18.1
Profit/loss(-) before tax 8.4 9.7
Tax expenses -11.7 -8.8
Net profit/loss(-) -3.3 1.0
Cash balance 293.9 259.5
Total assets 739.1 712.0
Total equity 501.7 482.8
Equity ratio 68% 68%
0
100
200
300
400
500
Other
North America
Europe - Hexvix
20242023202220212020
OtherEurope North America
0
100
200
300
400
500
600
Total revenue
2024
Mile-
stones
Other
sales
Europe
growth
US
growth
Total revenue
2023
23.7
500.7
22 .0
-0.2
-20.7
525.4
SALES REVENUE 2020-2024
(NOK million)
REVENUE 20232024
(NOK million)
FINANCIAL OVERVIEW
(NOK million)
Hexvix/Cysview revenue
grew by 10%
2023 2024
+10%
49.2
MILLION
NOK generated
in EBITDA
FINANCIAL HIGHLIGHTS
5
BLC Saphira
Towers placed in
2024 in the U.S.
(incl. 38 new towers)
Agreement to develop new
HD Flexible BLC system
with Richard Wolf
Expanded Cysview
label in Canada:
covering NMIBC and
CIS detection
55
49.2
MILLION
Asieris partner news:
Hexvix MA approved in China
Cevira NDA acceptance for review in China
Abstracts
presented
at 5 urology
congresses
7
Medical
journal articles
& editorials
published
4
Named Patient Program
providing access to
Hexvix in South Africa
GLOBAL BUSINESS HIGHLIGHTS
Mobile Tower
Initiative launched
in the U.S. with
ForTec Medical
6
Annual Report Photocure – Results 2024
CEO letter
Since 2021, Photocure has been a
participant of the United Nations Global
Compact (UNGC); the world’s largest
corporate sustainability initiative.
This commitment as part of a global
movement means that we must adhere
to the ten principles of the UNGC
within human rights, labor, environment,
and anti-corruption. For Photocure,
sustainability is about both the quality
products we make and the way we run
our operations: we strive to give bladder
cancer patients access to care in a
sustainable way, while working to create
value for our shareholders.
As a specialty healthcare products
company, we believe responsibility,
transparency and sustainability must
be integrated in Photocure’s business
model and strategy, and that efficient,
high-quality products manufactured,
sold and used in a responsible manner
is what makes us a successful company.
The backbone for this success is
our people and company culture.
Photocure’s core values comprise
important standards for the company,
both internally and externally, guiding
our behavior, what we believe and how
we will succeed. They exist under the
principle that We Care about everything
we do and everyone we engage with.
Our core values – Take Ownership, Be
Passionate, Be Courageous, Be Agile, Be
Curious and Work Together – have been
established from within our teams.
Within this annual report we deliver
Photocure’s sixth sustainability report
this year, prepared in accordance
with the 2021 GRI Standards and
with reference to Euronext guidelines
for ESG reporting and the European
Sustainability Reporting Standard
(ESRS). We have implemented a process
based on stakeholder dialogue and
materiality assessment to ensure that
Photocure reviews and reports on the
most material topics for our company
and our industry and that our reporting
is aligned with our business objectives,
supports our strategy, and minimizes
risks. We also reference our attention
to industry standards and regulations,
which helps us implement our
responsibilities across our value chain in
a systematic manner.
In this year’s report, we follow up on
the targets and progress for each
material topic, as defined in last year’s
ESG report and we continue to set
goals for how to improve our work
in the future. Going forward, we will
work systematically on implementing
sustainability targets in our purchasing
and supply chain activities. We will also
continue to strengthen the focus on a
safe, healthy, productive and inclusive
working environment and ensure the
appropriate channels for reporting
concerns are well known.
Photocure’s mission is to deliver
transformative solutions to improve
the lives of bladder cancer patients.
We seek to do so in a responsible
way. We will continue to build a high-
performance corporate culture based
on a foundation that values diversity,
equality, respect and inclusion, and
operates with the highest level of
integrity. I hope this report will highlight
our commitment to sustainability as well
as provide insights about our approach
to its challenges and opportunities for
our business and society.
At Photocure, we focus all our efforts and resources on delivering transformative solutions
to improve the lives of bladder cancer patients. Our medicinal product makes cancer cells
visible for physicians so they can optimize the diagnoses, staging and treatments for cancer
patients. More than 850 000 diagnostic procedures have been conducted around the
world to date.
7
Dan Schneider
President and CEO
of Photocure
«Photocure’s mission is to deliver
transformative solutions to improve
the lives of bladder cancer patients. We
seek to do so in a responsible way.»
8
Annual Report Photocure – Results 2024
Board of Directors
Report 2024
In 2024, the installed base of rigid BLC
towers increased with the continued
adoption of Karl Storz’ high definition
Saphira
™
blue light capital equipment.
The number of new rigid BLC towers in
the U.S. grew 11%, or 38 towers, from the
fourth quarter of 2023, and there were
55 Saphira towers placed, both new and
upgraded equipment, during 2024. The
growth of rigid BLC capital equipment
significantly outweighed the loss of
flexible BLC towers, which fell from 27 to
25 towers throughout the year.
Hexvix
®
/Cysview
®
revenue grew 10% to
NOK 487.9 million in 2024, and global unit
sales increased 6% compared to 2023.
Total revenue for the Company increased
5% to NOK 525.4. including milestones
received from Asieris in both the 2023
and 2024 periods.
Milestone payments in 2024 from Asieris
totalled NOK 33.7 million compared to
NOK 54.4 million in 2023. As a result,
reported operating profit in 2024 of NOK
20.4 million was NOK 7.4 million lower
than the NOK 27.8 million operating profit
reported in 2023. Without the milestone
revenue in both periods, adjusted
operating profit increased by NOK 12.5
million in 2024 compared to 2023. The
milestone revenue in both 2023 and 2024
reflects payments received from Asieris
MediTech Co., Ltd. (Asieris) for the clinical
trial and regulatory advancement of
both Hexvix
®
in China and Cevira
®
, which
are licensed to Asieris. Furthermore the
2024 and 2023 operating results include
NOK 8.5 million and NOK 9.9 million,
Photocure delivered strong financial performance in 2024, with revenue growth of 10%
and EBITDA of NOK 49.2 million. During the year, the Company focused on increasing its
product sales, expanding and upgrading the installed base of blue light cystoscopes in
North America and Europe, and advancing other key strategic initiatives. The number of
rigid blue light cystoscopy (BLC
®
) towers installed in 2024 was the second largest in the U.S.
since the Company launched Cysview
®
, and in Europe, Photocure has facilitated blue light
image quality upgrades for over one-third of its target accounts since 2023. The investment
in Photocure’s Priority Growth Markets in Europe is paying off, with unit sales growth in
the UK, France and Italy accelerating to 9% in 2024, compared to growth of 3% in 2023.
While U.S. sales in the flexible cystoscopy segment continued to decline during the year
due to Karl Storz discontinuing the manufacture and sale of new flexible BLC equipment,
the Company continued to grow its rigid blue light cystoscopy business to more than offset
the loss of flexible cystoscopy sales. The growth of Cysview in the rigid BLC segment was
partially driven by the successful mid-year launch of a mobile blue light tower initiative in
connection with a collaboration between ForTec Medical, Karl Storz and Photocure in the
U.S. In response to the lack of flexible BLC equipment availability, Photocure announced
a partnership with Richard Wolf during 2024 to develop and globally commercialize a
new high-definition flexible blue light cystoscope solution to address this important and
underserved market. In addition to this progress, the late 2024 launch of Olympus’s new
high-definition blue light cystoscopy upgrade in Europe, the possible reclassification of
blue light cystoscopes in the U.S., and the advancement of the license agreements with
Asieris have potential to become significant drivers of future growth.
9
respectively for non-recurring business
development expenses associated with
the Company’s objective to expand its
revenue opportunities. Net loss in 2024
was NOK 3.3 million, compared to a net
profit of NOK 1.0 million in 2023.
Despite the ongoing challenges in 2024
including the phase-down of flexible
BLC equipment in the U.S. and the
launch delay of Olympus’ upgraded
blue light system in Europe, Photocure
delivered on key corporate objectives
during the year. The company reported
significant product revenue growth
and an increase in commercial EBITDA,
driven by positive contributions from
both its North American and European
business units.
Photocure’s North American commercial
team grew the overall business by
focusing on the TURBT
*
(rigid BLC)
segment of the market and the initial roll-
out of the mobile BLC collaboration with
ForTec Medical beginning in mid-2024.
In Europe, the Company delivered strong
growth in the DACH region as well as unit
sales acceleration in its Priority Growth
Markets via image quality upgrades and
commercial focus. Increasing support
from key opinion leaders (KOLs) in
several European countries and updated
EAU guidelines in 2023, which clarify the
benefits of BLC, were important drivers
of the progress and should continue
to reinforce the growth trend in these
markets.
During 2024, the focus on non-muscle
invasive bladder cancer (NMIBC)
increased significantly within the
urology treatment community driven
by a wave of newly approved or late-
stage therapeutics to treat the disease.
Momentum in the NMIBC treatment
landscape was evident at major medical
congresses throughout 2024 such as
the American Urological Association
(AUA) and European Association of
Urology (EAU) Annual Meetings with
more than 20 ongoing clinical trials for
NMIBC treatments. For these drugs
and drug candidates, finding patients
whose treatments have failed or who
are refractory to first-line treatments
as early as possible is key to utilizing
these next generation products. As a
result, BLC with Hexvix/Cysview has
seen increased industry attention as
adoption continues to expand, and
there is potential to use the technology
to identify these patients earlier. With
multiple drug companies expected to
invest significantly to develop markets
for these new therapies, Photocure is
working to position BLC as a definitive
diagnostic to help physicians make
better decisions when selecting among
these new NMIBC treatments.
In line with the increased innovation
in NMIBC treatment, Photocure also
announced clinical data presentations
for BLC with Hexvix/Cysview at
bladder cancer congresses in 2024
including those sponsored by the
AUA, the American Society of Clinical
Oncology (ASCO GU), and the EAU. In
total, there were 7 abstracts accepted
for presentation during 2024, and
the Company also announced 4
publications in peer-reviewed journals
highlighting the clinical and health
economic benefits of using BLC with
Hexvix/Cysview.
Supporting the Company’s effort to
position BLC with Hexvix/Cysview in
the new NMIBC treatment paradigm,
Photocure’s U.S. Registry is the largest
bladder cancer patient registry in
the country with over 3,500 patients
included in the database to date.
In 2023 and 2024, the Company
capitalized expenses associated with
this asset, given the high interest from
companies pursuing new bladder
cancer treatments and seeking access
to the real-world data generated by
this Registry. The interest also relates
to the use of BLC to identify patients
who have failed first-line bladder cancer
treatments. As a result, Photocure
expects that it will continue to monetize
this important resource going forward.
Photocure is pursuing several strategic
initiatives to accelerate the growth of its
Hexvix/Cysview franchise by increasing
the availability and access of BLC
capital equipment globally. In 2024, the
Company made significant progress on
those initiatives and reported progress
on its partnership with Asieris.
On June 4, Photocure announced
that it commenced activities to
support a new initiative enabling U.S.
hospitals and clinics to offer blue light
cystoscopy (BLC
®
) using a mobile
capital equipment model. The initiative
is aligned with an agreement between
Karl Storz and ForTec Medical, aimed
at providing on-demand Saphira
™
BLC equipment to hospitals in the U.S.
leveraging ForTec’s utilization-driven
mobile equipment business model. The
mobile tower opportunity is intended
to increase access to BLC by reducing
or eliminating the need for capital
budget approvals and instead, enabling
hospitals to utilize operating budgets to
bring the benefits of BLC with Cysview
®
to their physicians and patients. The
mobile tower initiative began with 6 on-
demand ForTec towers in the field and
was expanded to 18 on-demand towers
in September 2024.
* TURBT: trans-urethral resection
of bladder tumors
10
Annual Report Photocure – Results 2024
In July 2024, Photocure announced
that it had entered into a strategic
agreement with Richard Wolf GmbH to
develop and commercialize a next-
generation 4K LED high-definition (HD)
reusable flexible blue light cystoscope
based on Richard Wolf’s System blue
technology. The agreement is focused
on developing technologically advanced
flexible blue light cystoscopy equipment
for the global market so that physicians
who treat patients with bladder cancer
can offer the benefits of BLC with
Hexvix
®
/ Cysview
®
in the outpatient,
or surveillance setting. Post-period, in
February 2025, Photocure provided
an update from its collaboration with
Richard Wolf disclosing that a flexible
BLC interim solution is now available
in Europe. This solution can serve as a
bridge to the fully optimized 4K LED HD
flexible BLC system that remains under
development.
In December 2024, Olympus launched
a high-definition blue light cystoscopy
upgrade for its state-of-the-art Viscera
Elite III endoscopic platform in Europe.
Photocure believes that this new blue
light upgrade and the Company’s
collaborative efforts with Olympus’ sales
and marketing organization will increase
the use of Hexvix in certain Nordic
countries and elsewhere in Europe.
Photocure has vigorously supported
the Citizen’s Petition by Karl Storz
requesting the U.S. Food and Drug
Administration (FDA) to reclassify
BLC equipment from Class 3 to
Class 2, potentially opening a new
pathway for more capital equipment
manufacturers to enter and expand the
U.S. market for BLC. Since the Petition
for reclassification was submitted
in October 2022, the need for new
equipment manufacturers in the U.S.
market has been highlighted in several
public comments from concerned
individuals and organizations, submitted
to the FDA and published in support of
the Citizen’s Petition including those
from physicians, health systems, patient
advocacy groups and equipment
manufacturers such as Richard Wolf,
Olympus and Stryker Corporation. On
December 10, 2024, the FDA officially
closed the public comment period for
Karl Storz’s Citizen’s Petition. Photocure
expects the FDA to publish a proposed
order in The Federal Register to indicate
next steps in the process for deciding
on the Citizen’s Petition.
Photocure’s partner Asieris continued
to advance its product candidates
licensed from the Company. On
November 5, 2024, Asieris announced
that market authorization for Hexvix was
granted by China’s National Medicinal
Products Administration (NMPA). The
regulatory approval resulted in a USD 1.1
million milestone payment to Photocure
in Q4 2024. Commercialization by
Asieris in China is dependent upon
the approval of Richard Wolf’s blue
light equipment, which remains under
regulatory review in China.
Additionally, Asieris is working toward
market approval of Cevira in China,
after announcing on May 12, 2024, that
its NDA for Cevira was accepted by the
NMPA for regulatory review.
About Photocure
Photocure ASA (“Photocure”, “the
Company” or “the Group”), the Bladder
Cancer Company, delivers transformative
solutions to improve the lives of bladder
cancer patients. Photocure’s unique
product, sold under the brand names
Cysview
®
(U.S. and Canada) and Hexvix
®
(all other markets), which make bladder
cancer cells glow bright pink under blue
light cystoscopy, has led to better health
outcomes for patients worldwide.
Photocure is headquartered in Oslo,
Norway and listed on the Oslo Stock
Exchange (OSE: PHO).
Strategic direction – Photocure’s
strategy is to maximize the efforts
of its commercial infrastructure
and the market opportunity for its
flagship brands Hexvix/Cysview in the
management of bladder cancer. In
addition, the Company will continue
to explore new product and business
opportunities that are complementary
to Photocure’s commercial activities
and expertise in uro-oncology.
11
Commercial Segment
Hexvix
®
/Cysview
®
– the
innovative product for
improved detection and
management of Bladder cancer
Bladder cancer ranks as the 8th most
common cancer worldwide – the 5th
most common in men – with 1 949 000
prevalent cases (5-year prevalence
rate), 614 000 new cases and more than
220 000 deaths in 2022. (Globocan.
Incidence/mortality by population:
Available at: https://gco. iarc.fr/today,
accessed February 2024). Bladder
cancer has the highest lifetime treatment
costs per patient of all cancers (Sievert
KD et al. World J Urol 2009;27:295–300).
Patients often must undergo multiple
cystoscopies due to the high risk of
recurrence. There is an urgent need
to improve both the diagnosis and the
management of bladder cancer for
the benefit of patients and healthcare
systems alike. Bladder cancer is
classified into two types, non-muscle
invasive bladder cancer (NMIBC) and
muscle-invasive bladder cancer (MIBC),
depending on the depth of carcinoma
invasion in the bladder wall. NMIBC
is the most common type of bladder
cancer cases (75%). In MIBC, the cancer
has grown into deeper layers of the
bladder wall, is more likely to spread,
and is harder to treat (Bladder Cancer.
American Cancer Society. https://www.
cancer.org/cancer/ bladder-cancer.html).
Photocure is leveraging its flagship
brands Hexvix/Cysview to improve
the detection of NMIBC and reduce
disease recurrence and progression
rates to improve cost-effective health
outcomes for bladder cancer patients.
Hexvix/Cysview is marketed in the U.S.,
Canada, and Europe by Photocure’s
own specialist commercial and medical
teams and through partnerships in
Chile, China, Australia/New Zealand,
and Israel. Additionally, in September
2024, Photocure entered into an
agreement with Equity Pharmaceuticals
PTY Limited, part of the Clinigen group,
to initiate a Named Patient Program
(NPP) enabling bladder cancer patients
in South Africa to access blue light
cystoscopy with Hexvix. In 2024
Photocure’s revenues from Hexvix/
Cysview totalled NOK 487.9 million,
compared to NOK 443.3 million in 2023.
The Company continues to see
significant growth opportunities in
its markets and believes that it has a
solid foundation for future growth of its
breakthrough bladder cancer product.
Furthermore, Photocure is exploring
expansion of its product portfolio
through internal product development
and the potential to acquire new
technologies, products, or businesses.
The Company has continued to invest
in its North American commercial
organization, in line with its commercial
market opportunities and strategic
objectives. The added resources have
driven growth in the number of blue
light cystoscopes installed at leading
U.S. hospitals/urology centres, as well as
growth in unit sales and revenue. The
use of Blue Light Cystoscopy (BLC®) with
Cysview, in rigid and flexible cystoscopy
procedures means that Cysview can be
used for both bladder cancer surgery
and follow-up surveillance cystoscopy,
allowing physicians to detect patients
with the disease earlier and manage
them more appropriately. Revenue in
the Company’s North America segment
increased 14% in 2024 to NOK 202.3
million from NOK 178.0 million in 2023.
The increase was mainly driven by higher
unit volume, average price increases,
and a benefit from foreign exchange.
The installed base of rigid blue light
cystoscopes in the U.S. increased by 38
to a total of 390 at end of the year.
In addition to investments in the
commercial capacity, growth has been
supported by inclusion of Blue Light
Cystoscopy with Cysview in prominent
national guidelines for the management
of bladder cancer and by improved
reimbursement.
In February 2020, Photocure announced
that the United States Patent and
Trademark Office (USPTO) had granted
U.S. Patent No. 10,556,010 covering
the use of Blue Light Cystoscopy with
Hexvix/ Cysview as neoadjuvant therapy
in the treatment of bladder cancer
in patients who are scheduled for a
cystectomy. The ‘010 patent expires in
December 2036.
In July 2021, the USPTO granted U.S.
Patent No. 11,066,478 which covers
a method to treat bladder cancer
including the intravesical instillation
of a composition comprising Hexvix/
Cysview and anti-PD-L1 and/or anti-PD-1
antibodies followed by exposure of the
inside of the bladder to light. The ‘478
patent expires in December 2036.
In February 2022, Photocure was
granted U.S. Patent No. 11,235,168
covering the use of Blue Light
Cystoscopy with Hexvix/ Cysview as an
adjuvant or neoadjuvant therapy for the
treatment of bladder cancer. The ‘168
patent will expire in January 2038.
In line with Photocure’s ambition to
significantly penetrate the U.S. market,
Cysview is on its way to becoming the
standard of care for bladder cancer
patients. Keys to success are in place
and include:
Approvals – Market authorizations
for use in both trans-urethral
bladder tumour resection (TURBT)
procedures as well as surveillance
cystoscopy
Acceptance – Recommended use
of Hexvix/Cysview by the AUA, EAU,
SUO, NCCN, and many regional
and local guidelines, as well as
the published Expert Consensus
Guidelines for surveillance with
flexible blue light cystoscopes
Access – Permanent codes
authorized in 2020 and 2021 for the
use of BLC in TURBT procedures,
and improved Medicare
reimbursement in surveillance
settings as of January 2023.
12
Annual Report Photocure – Results 2024
Activated Awareness – Demand
via advocacy groups, clinics’
advertising, and media
Acceleration – Commercial
investment in the U.S. to optimize
the opportunity.
Photocure plans to maximize the
return on its commercial investment
by growing its business in the largely
untapped U.S. market, as well as in
Europe where the Company expects
to see strong returns in the form
of revenue growth and improved
profitability. Reacquisition of the
broader European commercial rights
has given Photocure global control
of the Hexvix/Cysview brand, and the
opportunity to generate sales in major
countries in Europe where blue light
cystoscopy is underpenetrated or not
yet introduced.
On June 11, 2020, Photocure entered
into an agreement with Ipsen Pharma
SAS (Ipsen) regarding the return of
Hexvix sales, marketing and distribution
rights in Europe and other markets
previously controlled by Ipsen to the
Company. Commercial rights were
transferred to Photocure on October
1, 2020. Photocure paid Ipsen EUR
15 million upon transfer on October
1, 2020, and Ipsen booked sales until
this date. In addition, Ipsen is entitled
to receive earn-out payments in the
reacquired markets in the range of
10-15% of sales for the years 1-7 post-
transfer and 7.5% of sales for the years
8-10 post-transfer.
By taking direct control of Photocure’s
own Hexvix/Cysview product in key
regions, the Company is supporting its
ambition to become a global leader
in the treatment and management of
bladder cancer, with a solid commercial
foundation for expansion and further
growth opportunities.
Full year 2024 European segment
revenues increased 8.4% to NOK 285.6
million from NOK 263.5 million in 2023.
The increase was mainly driven by higher
unit volume, average price increases, and
a benefit from foreign exchange.
During 2024, several scientific
publications and presentations
highlighted and confirmed key benefits
of BLC with Hexvix/Cysview. Main
publications and presentations for the
year are below:
In March 2024, an article was
published in the medical journal
Cancers entitled Racial Difference
in Detection Rate of Bladder Cancer
Using Blue Light Cystoscopy:
Insights from a Multicenter Registry.
The study in the article evaluated
heterogeneity in characteristics of
blue light cystoscopy for detection
of malignant lesions among various
races with non-muscle invasive
bladder cancer (NMIBC). Overall,
2379 separate samples were
identified from 1292 patients, of
whom, 1095 (85%) were White/
Caucasian, 96 (7%) Black/African
American, 51 (4%) Asian and 50 (4%)
Hispanic. In all races, the sensitivity
of BLC was significantly higher than
WLC for detection of CIS (P<0.001).
Also, the addition of BLC to standard
WLC increased the detection rate
by 10% for any malignant lesion in
the total cohort. This rate increased
to 18% in Asian patients. Positive
predictive value of BLC was also
highest in the Asian population
(94.4%). The study authors
concluded that regardless of race,
BLC increased the detection of
bladder cancer when combined with
WLC. However, the difference was
more pronounced in Asian patients.
Link to publication
In April 2024, two clinical abstracts
featuring blue light cystoscopy were
presented in abstract sessions at
the 2024 European Association of
Urology (EAU) Annual Congress. The
first abstract evaluated whether
12-month recurrence-free survival
after out-patient department photo
coagulation of bladder tumors (PC-
BT) is non-inferior to PDD-assisted
TUR-BT in patients with recurrent
Ta low grade bladder tumor. For the
299 patients evaluable for 12-month
follow-up, the findings demonstrated
that the non-inferiority criterion was
met. Recurrence-free survival was
noninferior, incidence of long-term
stage progression after outpatient
PC-BT is noninferior to TUR-BT.
Accordingly, the study authors
noted that treatment of recurrent
Ta low grade intermediate risk
bladder tumor with outpatient PC-BT
appears to be a safe alternative to
TUR-BT. Link to abstract
The second abstract at the 2024
EUA Congress described the recent
Hexvix randomized controlled
Phase III trial in China in which 158
patients were enrolled, and 114
patients underwent Hexvix blue light
cystoscopy (BLC). Among patients
diagnosed with Ta, T1, or CIS, 42
out of 97 patients (43.3%) had at
least one lesion detected by BLC
but not by white light cystoscopy
(WLC) (p<0.0001). Thirteen patients
had CIS of which 11 (84.6%) showed
additional CIS lesions. The BLC
detection rates for PUNLMP, CIS,
Ta, T1, and T2 ~ T4 tumors were
NA, 94.7%, 100%, 98.2%, and
100%, respectively, while the WLC
detection rates were NA, 42.1%,
76.1%, 91.2%, and 100%. These
results confirm the superiority of
HAL BLC over WLC in the detection
of bladder cancer even if improved
WLC using HD 4K equipment is
utilized. In particular, additional high-
risk difficult to see CIS lesions were
identified in 85% of all CIS patients
only by HAL BLC. Link to abstract
In May 2024, a clinical abstract was
presented at the 2024 American
Urological Association (AUA) Annual
Congress. The abstract featured
results from the VA BRAVO (Bladder
Cancer Recurrence Analysis in
Veterans and Outcomes) study, a
retrospective, propensity score
matched analysis that evaluated
oncologic outcomes following
13
BLC compared to WLC alone in
patients from the Veterans Affairs
(VA) Healthcare System. The study
addresses a lack of practical real-
world data comparing the impact
of BLC versus WLC, specifically
for recurrence, progression, and
survival. The results of this study
confirm that BLC use is associated
with positive and statistically
significant impacts on these
outcomes. 626 patients were
included in this study, 313 in each
study arm (WLC vs. BLC). Risk of
recurrence was significantly lower
following BLC (HR 0.60, 95% CI
0.29-0.61), consistent with data from
multiple RCT studies. Additionally,
patients who underwent BLC had
a significantly reduced risk of
progression (HR 0.51, 95% CI 0.36-
0.99) compared to patients who
underwent WLC. The study also
showed improved overall survival
among patients receiving BLC vs.
WLC (HR 0.41, 95% CI 0.30-0.72).
The Principal Investigator of the
BRAVO Study, Dr. Steven Williams,
commented: “The results of the
BRAVO study performed within
the VA healthcare system showed
significant decreases in the risk
of recurrence and progression, as
well as the potential for improved
overall survival in patients who
received BLC compared to patients
who received WLC only. The
demonstrated impact on overall
survival warrants future studies to
better understand the oncologic
benefit of BLC in NMIBC”. Link to
abstracts
In August 2024, a case report was
published in the journal European
Urology Open Science, which
described the first documented
case of blue light cystoscopy
used in the upper urinary tract to
diagnose upper tract carcinoma in
situ (CIS). The study author stated
that “Photodynamic surgery using
blue light with Cysview was uniquely
added to the diagnostic and
therapeutic treatment of insidious
upper tract urothelial carcinoma
(UTUC) in a patient with a wide,
patulous ureteral orifice.” Photocure
believes that this is the first instance
of using blue light cystoscopy
to evaluate the upper tract for
UTUC. The patient’s pathology was
confirmed by biopsy to be CIS, and
evaluation with white light alone
likely would have under-staged the
patient without the assistance of
alternate wavelength diagnostics
utilizing blue light and HAL. While
the efficacy of blue-light cystoscopy
for diagnosing tumors arising from
the bladder is well established
within the current literature, few
studies have examined the utility of
it in diagnosing tumors of the upper
tract.” The diagnosis and treatment
of UTUC is not an approved
indication for Hexvix/Cysview, and
therefore more clinical studies
would be required to advance the
use of blue light cystoscopy in this
indication. Link to article.
14
Annual Report Photocure – Results 2024
Development Portfolio
The Company’s development portfolio
mainly consists of projects related to
the development of Hexvix/Cysview
and activities related to the agreement
with Asieris for Cevira.
During the full year of 2024, Photocure
received milestone payments from
Asieris totalling NOK 33.7 million (NOK
54.4 million). Operating expenses
include business development
expenses, R&D expenses related
to the development of Cevira and
Hexvix in China, and an allocation of
overhead expenses. Full year business
development expenses were NOK 8.5
million (NOK 9.9 million).
Cevira
®
– in development for
the non-surgical treatment
of high-grade squamous
intraepithelial lesions,
including all HPV sub-types
Cevira is a photodynamic drug-device
combination product candidate for the
non-surgical treatment of high-grade
cervical dysplasia.
In July 2019, the Company announced
that it had entered into a License
Agreement providing Asieris with a
world-wide license to develop and
commercialize Cevira (APL-1702) for
the treatment of HPV-induced cervical
precancerous lesions.
Subsequently, Asieris launched a
global clinical development program
initially focused on the Chinese market,
based on Photocure’s Phase IIb data
for patients diagnosed with high grade
lesions and Phase III study design
elements discussed with the U.S. FDA.
In late 2020, Asieris initiated patient
enrolment in its global, multi-centered
Phase III clinical trial for Cevira.
In August 2022, Asieris announced the
completion of enrolment in this trial,
accruing a total of 402 patients. The
majority of patients in the study were
enrolled in China, with the remainder
enrolled in Europe. On September
20, 2023, Asieris announced that the
Phase III trial met its primary endpoint,
together with a robust safety profile.
The full Phase III results were featured
in oral presentations in March 2024
at the 2024 European Research
Organization on Genital Infection and
Neoplasia (EUROGIN) Congress and
at the 2024 Society of Gynecologic
Oncology (SGO) Annual Meeting.
Information about the Phase III clinical
trial for Cevira can be found by clicking
the following link: https://clinicaltrials.
gov/study/NCT04484415. Asieris is
working toward market approval of
Cevira in China, after announcing on
May 12, 2024, that its NDA for Cevira
was accepted by China’s National
Medical Products Administration
(NMPA) for regulatory review. Asieris
has also stated that it is actively
exploring opportunities for overseas
development partnerships for Cevira.
Under the License Agreement with
Asieris, Photocure has received
USD 17.0 million in milestones as of
the end of 2024 including a signing
fee of USD 5.0 million in 2019 and
additional development milestone
payments. Photocure is eligible for a
USD 11.0 million milestone payment for
the potential regulatory approval of
Cevira in China. In addition, Photocure
may also receive milestones of up
to USD 31.0 million for regulatory
submissions and approvals of Cevira
in Europe and the U.S. Initiation of
patient dosing for a second indication
of Cevira and approvals for such an
indication in China, Europe, and the
U.S. would trigger additional aggregate
development and regulatory milestone
payments of up to USD 16.0 million
to Photocure. The Company is also
eligible to receive royalties between
10% and 20% of global sales based
on the achievement of certain sales
thresholds, as well as cumulative
milestone payments up to USD 190.0
million associated with global sales,
with a significant portion of those
milestones being triggered if the
product achieves blockbuster status.
15
Financial review
The Photocure annual accounts
have been prepared in accordance
with IFRS® accounting standards as
adopted by EU.
Total revenue was NOK 525.4 million in
2024, an increase from the NOK 500.7
million reported in 2023. Total revenue
includes signing fees and milestones of
NOK 33.7 million in 2024 and NOK 55.4
million in 2023.
Sales revenues reached NOK 491.7 million
in 2024, an increase of 10% from NOK
446.2 million in 2023. Sales revenues
comprise of the Company’s own sales
of Hexvix in Europe and Cysview in
the U.S. and Canada and income from
product sales from Photocure’s license
partners on sales of Hexvix/Cysview
to hospitals and pharmacies in other
regions. The increase in revenues was
mainly driven by added volume, average
price increases and impact from foreign
exchange.
Operating expenses increased from
NOK 419.0 million in 2023 to NOK
445.5 million in 2024. The increase in
operating expenses is mainly driven
by foreign exchange effects, merit and
inflation. Operating expenses include a
total of NOK 16.7 million amortization of
intangible assets related to the return
on October 1, 2020, of Hexvix sales,
marketing and distribution rights in
Europe and other markets previously
controlled by Ipsen.
Photocure’s operating result was NOK
20.4 million in 2024, compared to an
operating result of NOK 27.8 million in
2023. The profit decrease is primarily
attributable to the increases in sales
revenues, offset by the decrease in
milestone payments and an increase in
expenses because of foreign exchange,
merit and inflation.
Net financial loss totalled NOK 12.0
million in 2024, compared to net
financial loss of NOK 18.1 million in 2023.
The net financial losses were driven
mainly by the Ipsen earnout payments
and foreign exchange losses and were
partially offset by interest income and
foreign exchange gains.
Result before tax was a profit of NOK
8.4 million in 2024, compared to a profit
of NOK 9.7 million in 2023. Tax expense
was NOK 11.7 million in 2024 and NOK
8.7 million in 2023. The calculation of
deferred tax at year end was based on
a tax rate of 22% for both 2024 and
2023.
The Group’s net result after tax was
NOK -3.3 million in 2024, compared to
NOK 1.0 million in 2023. Net cash flow
from operating activities was NOK 76.8
million in 2024 compared to NOK 48.3
million in 2023. The cash flow from
operating activities in 2024 was mainly
driven by positive operating results
adjusted for non-cash items. Net cash
flow from investing activities was NOK
1.4 million in 2024, compared to NOK
-0.6 million in 2023.
Net cash flow from financing activities
was NOK -43.8 million in 2024. This
compares to net cash flow from
financing activities in 2023 of NOK
-56.3 million including 12.5 million in
term loan principal payments. Net cash
flow from financing activities includes
annual earn-out payments to Ipsen of
NOK 37.1 million in 2024 and NOK 34.4
million in 2023.
Photocure secured bank financing
of NOK 50 million during the second
quarter of 2020 and has fully paid off the
principal during second quarter 2023.
The bank loan was secured under the
State Guarantee Scheme for Loans to
SMEs as a buffer for Covid-19 impacts.
Photocure follows a low-risk investment
strategy for its liquid funds. The return
on the liquid funds depends on the
rate of interest in the money markets
and will therefore vary over time. Liquid
funds amounted to NOK 293.9 million
on December 31, 2024, and NOK 259.5
million on December 31, 2023.
Shareholder equity was NOK 501.7
million on December 31, 2024, an
equity ratio of 68%. At the end of 2023,
shareholder equity was NOK 482.8
million (68%).
Dividend
The Board of Directors does not
propose a dividend payment for 2024.
Photocure is focusing its resources on
building a therapeutic area-focused
commercial stage pharmaceutical
company with a focus on bladder
cancer. The Board of Directors will
recommend payment of dividends
in line with the Company’s results,
financial position, product and market
development plans, and outlook.
Photocure does not expect to pay
dividends in the near future.
Parent company
In 2024, Photocure ASA (Parent
company) generated a profit after tax
of NOK 24.9 million, compared to a loss
after tax of NOK 3.6 million in 2023. The
equity in Photocure ASA totalled NOK
833.2 million on December 31, 2024. The
equity ratio was 78%.
Share capital and board
mandates
On December 31, 2024, 27,120,820
Photocure shares were registered. At
the Ordinary General Meeting on May
23, 2024, the Board of Directors was
granted authorization to purchase up to
10% of its own shares. On December 31,
2024, Photocure held 15,122 own shares.
16
Annual Report Photocure – Results 2024
Going concern
Pursuant to § 3.3 (a) of the Norwegian
Accounting Act, it is confirmed that
the conditions for assuming that the
Group is a going concern are present,
and that the financial statements have
been prepared on the basis of this
assumption. After the reporting period
ended, the Company repurchased
300,000 shares at an average price of
NOK 60.41 per share, totaling NOK 18.1
million. The purpose of the repurchase
program is to fulfill obligations arising
in accordance with Photocure’s long
term incentive programs and the
Company’s guidelines for remuneration
as approved by Photocure’s annual
general meeting held on 23 May 2024,
or otherwise as decided in accordance
with the authorization. No other events
have occurred since the end of 2024,
except those which are stated in this
report that are of major significance
for the assessment of the Company’s
financial position and results.
Risk factors and risk
management
Photocure is subject to operational
and financial risk factors and
uncertainties which may affect parts
or all the activities in the Group.
The Company proactively manages
such risks, and management and the
Board of Directors regularly analyse
operations and potential risk factors
to take measures to reduce risk
exposure.
Operational risk
Photocure develops innovative
products and markets and sells these
products through its own commercial
teams and in partnerships with other
companies. These activities entail
exposure to various risks. The Board
of Directors and management monitor
and analyse the Company’s operations
and potential risk factors and actively
take risk reduction measures.
Commercial risk
Photocure is commercializing Hexvix/
Cysview directly in the U.S., Canada, and
Europe, and has strategic partnerships
with Genotests SpA in Chile, Asieris in
China, Endotherapeutics in Australia/
New Zealand, Equity Pharma in South
Africa, and IGL Medical in Israel.
Any significant event that adversely
affects revenues from Hexvix/Cysview
could have a material and negative
impact on Photocure’s results and cash
flows. Key commercial risks include:
Reimbursement may be limited
or unavailable in certain markets,
which could make it more difficult
to achieve profitability in these
markets. Changes in reimbursement
in Europe and the U.S. may have
a material impact on Photocure’s
results and cash flows.
Inflationary pressures in the
economy and budget tightening
may inhibit the hospitals’ ability to
invest in equipment. This may have
a negative impact on the Company’s
revenues, results and cash flows.
Hospitals and other medical
institutions may restrict access
for our staff which will make the
sales and support activities more
challenging and therefore may have
a negative impact on Photocure’s
results and cash flows.
Hospitals and other medical
institutions may find limited
availability of nursing and other staff.
This may impact the demand for
Photocure’s products and therefore
may have a negative impact on the
Company’s revenues, results and
cash flows.
Use of Hexvix/Cysview
requires installation of Blue
Light Cystoscopes which are
manufactured and sold by other
companies, only one of which
is approved with Cysview in the
U.S. These companies’ ability
and willingness to develop and
promote these products may affect
Photocure’s results and cash flows.
Partners’ ability to support the brand
in key markets.
The expiration or loss of patent
protection may adversely affect
Photocure’s future results and cash
flows. Third parties may challenge
or seek to invalidate or circumvent
Photocure’s patents and patent
applications. The patent for Hexvix
expired in the main European
countries in 2019 and the patent for
Cysview in the U.S. expired in the
fourth quarter 2020.
Competitive products or
technologies may emerge at
any time, and changes in the
competitive landscape may have
a material impact on Photocure’s
results and cash flows.
Manufacturing risk
Photocure relies on third-party suppliers
for manufacturing and assembly. Delays
or interruptions and quality issues at the
production facilities as well as improper
transport, handling and delivery may
impair supply of Hexvix/Cysview to the
market and hence revenues, results,
and cash flows.
Development and
regulatory risk
Photocure’s partner Asieris requires
approval from regulatory authorities
to market Cevira®. Efficacy or safety
issues could arise, and approval may be
denied, delayed or limited.
In general, successful launches and
sales for pipeline products may not
be achieved inter alia due to changes
in market dynamics or competition,
unsuccessful marketing, and/or
pricing pressure due to limitations
17
on healthcare budgets. As with any
drug or device intended for diagnostic
or therapeutic use, adverse clinical
reactions are always a possibility.
Financial risk
Photocure’s international business
operations are exposed to liquidity
and funding risk, credit risk, currency
risk and interest rate risk. At the end of
2024, the Company had no derivatives
or other financial instruments to reduce
the currency risk and interest rate risk.
Company management is responsible
for managing the financial risk. Financial
risk is also monitored by the Board of
Directors.
Liquidity and funding risk
The Company monitors its cash
flows through planning and reporting.
Photocure does not have any loan
agreements that involve covenants or
other restrictions. Photocure uses a
multi-currency consolidated accounts
system that provides flexibility in
relation to drawing on multiple
currencies.
The company may require new capital
in the future. Adequate sources of
capital funding may not be available
when needed or may not be available
on favourable terms.
Credit risk
Photocure is primarily exposed to
credit risk associated with accounts
receivable and other short-term
receivables. Photocure’s sales are
mainly to hospitals and pharmaceutical
wholesalers. The credit risk is limited
as the counterparties are mainly large
and non-affiliated companies/hospitals.
Photocure’s credit risk is considered
moderate, and the Company does not
use credit insurance.
Currency risk
Because the Norwegian Kroner is the
Company’s presentation currency,
Photocure is exposed to translation
risk associated with the Company’s
net exposure in foreign currency.
Photocure’s revenues and costs are
incurred in different currencies and
the Company is therefore exposed
to exchange rate fluctuations. The
Company monitors the need for
hedging of large transactions on an
ongoing basis. Photocure did not
have outstanding hedges of future
transactions on December 31, 2024,
and December 31, 2023.
Interest rate risk
In the second quarter of 2020,
Photocure received a loan of NOK 50
million, which is secured under the
State Guarantee Scheme for Loans
to SME’s (Covid-19 related). The loan
was a three-year term loan, with first
year interest only and with quarterly
repayments of NOK 6.25 million
thereafter. The loan carried a floating
interest rate, and the nominal interest
rate at the end of the second quarter
of 2023 was 5.4%. The loan was fully
repaid in the second quarter of 2023.
Interest rate risk is also associated with
the Company’s holdings of cash and
cash equivalents. The main strategy is
to diversify the risk and invest in money
market funds and bond funds with low
risk, high liquidity, and short duration.
The investments are denominated in
NOK.
18
Annual Report Photocure – Results 2024
Organization
The Group’s Leadership Team at
year- end consisted of Dan Schneider,
President and Chief Executive Officer;
Erik Dahl, Chief Financial Officer;
Geoffrey Coy, Vice President and
General Manager North America; Anja
Gossens-von der Heidt, Head of Global
Human Resources and Anders Neijber,
M.D., Chief Medical Officer.
The Board of Directors held 16
meetings in 2024. All members of the
Board of Directors are shareholder-
elected. The members of the Board
of Directors were at the end of 2024;
Dylan Hallerberg, (Chairperson),
Ghizlane Tagmouti, and Neal Shore, M.D.
Photocure ASA has acquired a
director’s and officer’s liability
insurance that applies to the
board members and the CEO. The
insurance also covers employees
who assume independent managerial
responsibilities and includes controlled
subsidiaries.
Photocure ASA has offices in Oslo,
Norway, in Princeton, New Jersey, U.S.
and in Düsseldorf, Germany.
Corporate social
responsibility
Photocure’s mission is to deliver
transformative solutions to improve the
lives of bladder cancer patients. It is
about patient access to healthcare and
quality of life.
This mission in society encompasses
all activities from developing products,
gaining approval by relevant authorities,
working with patient organizations and
hospitals, and finally getting products to
the market either through Photocure’s
own sales organization or by partners.
The Company is also continuously
supporting clinical research activities
and training a growing number of
physicians in using the blue light
cystoscopy procedure. Photocure
is also taking part in community
involvement activities and is partnering
with prominent patient associations
to enhance the access to care and
awareness of bladder cancer in general.
Sustainability has been part of
Photocure’s strategy since its origin.
The company believes that creating
value for patients, customers and
society strengthens the Company’s
business and provides value for
shareholders. Beyond the business
impact, Photocure has implemented
further metrics and operating
procedures linked to the UN Global
Compact, the globally recognized
framework for advancing sustainability
in the public and private sectors, and
to foster strong relationships with
a variety of stakeholders through
dialogue on material topics and through
its commitment to corporate social
responsibility.
Comprehensive ESG reporting for the
Company is available at page 79 in this
annual report.
The Norwegian Transparency Act
has been implemented with written
procedures. See further details on page
107 in the ESG section of this annual
report. Photocure’s Transparency
Statement is available on https://
photocure.com/our-impact/corporate-
social-responsibility.
Photocure’s corporate social
responsibility guidelines are available at
www.photocure.com.
Outlook
Photocure delivers transformative
solutions that improve the lives of bladder
cancer patients. Based on benefits of the
Company’s breakthrough product for the
management of bladder cancer, Hexvix/
Cysview, the Company has embarked
on a stepwise approach for continued
growth. Photocure sees significant
long-term potential in the global bladder
cancer treatment market and employs
the following growth strategy:
Acceleration – Drive the breadth
and depth of Hexvix/Cysview usage
in key accounts.
Expansion – Generate sales in
new geographies and product
enhancements.
Acquisition – Find and acquire or
partner additional products used in
the management of bladder cancer
patients.
Transformation – Acquire assets
to strengthen the Company’s uro-
oncology product portfolio.
North America and Europe are
Photocure’s primary markets for growth,
given the Company’s two direct sales
organizations and a majority of the
market still to be penetrated by Hexvix/
Cysview with BLC. Photocure regained
the sales and marketing rights to Hexvix
in continental Europe in the fourth
quarter of 2020 and regained the rights
to Cysview in Canada in January 2022.
As a result, the Company remains
positioned to take advantage of the
growth opportunities in these regions.
Photocure believes that the benefits
of Blue Light Cystoscopy with Hexvix/
Cysview offering superior detection
and management of bladder cancer will
continue to be adopted and become the
standard of care. Indicators of continued
growth in the Company’s business are:
(1) increased access to BLC through
ongoing expansion of the installed base
of rigid BLC towers in North America
and increased interest in the mobile
tower solution, (2) growing support
behind the potential reclassification of
BLC capital equipment from Class 3 to
Class 2 in the U.S., which, if approved by
the FDA, is expected to open the market
for multiple manufacturers to offer BLC
equipment (3) increasing momentum of
BLC in the urology community and new
NMIBC treatment options as observed
at the European Association of Urology
and American Urological Association
congresses in 2024, (4) a high number
of blue light image quality upgrades in
19
targeted European accounts, and (5) the
introduction of an interim flexible BLC
solution from Photocure’s collaboration
with Richard Wolf to address the current
unmet need and serve as a bridge to a
new optimized high-definition flexible
BLC system for global distribution in the
future. The Company plans to continue
supporting its commercial efforts
with additional clinical publications
in scientific journals and data
presentations at medical conferences
to underscore the clinical benefits and
cost-effectiveness of using BLC with
Hexvix/Cysview.
Photocure expects product revenue
growth in the range of 7% to 11% and
YoY EBITDA improvement in 2025. While
the Company is not providing a specific
EBITDA guidance range, Photocure
expects continued operating leverage
flow-through in its core commercial
business and significant growth in
milestones this year.
Dylan Hallerberg
Chairperson of the Board
Neal Shore
M.D., Director
Dan Schneider
President and CEO
Ghizlane Tagmouti
Director
Oslo, 11 April 2025
Photocure ASA
20
Annual Report Photocure – Results 2024
We confirm that, to the best of our knowledge,
the financial statements for the period from
January 1 to December 31, 2024 have been
prepared in accordance with IFRS® accounting
standards as adopted by EU and give a true
and fair view of the Group and the Company’s
consolidated assets, liabilities, financial position
and results of operations, and that the Report
of the Board of Directors provides a true and
fair view of the development and performance
of the business and the position of the Group
and the Company together with a description
of the key risks and uncertainty factors that the
Company is facing.
Dylan Hallerberg
Chairperson of the Board
Neal Shore
M.D., Director
Dan Schneider
President and CEO
Ghizlane Tagmouti
Director
Oslo, 11 April 2025
Photocure ASA
Confirmation
from the
Board of
Directors
and CEO
2024
21
Dylan Hallerberg
Chairperson of the Board
Attendance: Board meetings: 16/16
Compensation Committee: 3/3
Audit committee: 5/5
—
Dylan Hallerberg is an independent director, without material
relationship with Photocure and being neither part of its executive
team nor involved in the company’s day-to-day operations. He
holds 150,000 shares and 15,277 share options in Photocure.
Independent board member Dylan Hallerberg is a private equity and investment
executive with extensive experience operating, improving and investing in
businesses across all asset classes and sectors. He started his career in
investment banking at Moelis & Company Los Angeles, after which he worked at
The Carlyle Group in London from 2010 to 2017, where he invested in European
public and private markets with a heavy operational focus. Following Carlyle, Mr.
Hallerberg continued his investment career as an Analyst/PM at GoldenTree
Asset Management in London before transitioning to leadership roles at Arcturus
UAV and Fortress Marine Anchors in the United States. He has extensive board
experience, having served on several boards as a member, observer, or an
executive. Dylan Hallerberg currently serves as the President and Owner of
Fortress Marine Anchors and is an active real estate and private equity investor
and family office advisor. Additionally, he serves on the board of Veterans
Exploring Treatment Solutions (VETS), the leading veteran’s charity focused on
serving Special Operations Forces (SOF) veterans suffering from TBI/CTE and
PTSD. He graduated Summa Cum Laude with Highest Honors from University of
California, Santa Barbara with a degree in Business Economics.
• Elected year 2023
• Chairperson of the Compensation Committee
• Member of the Audit Committee.
22
Annual Report Photocure – Results 2024
Neal Shore
M.D., Director
Attendance: Board meetings: 16/16
Scientific committee: 3/3
—
Neal Shore is an independent director, without material
relationship with Photocure and being neither part of its executive
team nor involved in the company’s day-to-day operations. He
holds no shares and 9,097 share options in Photocure.
Independent board member Dr. Shore is Medical Director for the Carolina Urologic
Research Center and is a Fellow of the American College of Surgeons. He has
conducted more than 400 clinical trials focusing mainly on genitourinary oncology.
Dr. Shore performs peer reviews for Lancet Oncology, New England Journal of
Medicine, European Urology, the Journal of Urology, Urology, BJUI, PCPD, and other
high-impact scientific journals. He serves on the executive boards of the Society
of Urologic Oncology and the Bladder Cancer Advocacy Network (BCAN). He has
served as the National/Global Urology Research Director for GenesisCare from 2019-
2023. From 2016 to 2018 Dr. Shore was the President of the Large Urology Group
Practice Association. In addition, he has served on numerous Committees, Editorial
and Review boards, such as the AUA Research and Innovations Committees, Health
and Data Committees, the SITC Task Force for Prostate Cancer and Bladder Cancer,
the Editorial Boards of Review in Urology, Urology Times, Chemotherapy Advisor,
OncLive, PLOS ONE, Urology Practice, and the World Journal of Urology.
• Elected year 2022
• Chairperson of the Scientific Committee
• Advisor for ESG matters.
23
Ghizlane Tagmouti
Director
Attendance: Board meetings: 10/10
Compensation committee: 2/2
Audit committee: 3/3
—
Ghizlane Tagmouti is an independent director, without material
relationship with Photocure and being neither part of its executive
team nor involved in the company’s day-to-day operations. She
holds 25,000 shares and 5,124 share options in Photocure.
Independent board member Ghizlane Tagmouti is an experienced investment
professional with a background in mergers and acquisitions. She worked in the
private equity team at Advent International in London from 2015 to 2024 and
contributed to several of the firm’s investments including the acquisition of ICE
Pharma and Zentiva, where she served as a board member. Prior to Advent, Ms.
Tagmouti was a member of the investment banking team at Morgan Stanley in
Paris and London. She holds a Master Grande Ecole in Finance from ESCP Europe
(France) and a Bachelor in Management from ISCAE (Morocco). Ghizlane Tagmouti
holds 25,000 shares and 5,124 share options in Photocure.
• Elected year 2024
• Chairperson of the Audit Committee
• Member of the Compensation Committee.
24
Annual Report Photocure – Results 2024
Corporate
Governance Policy
and Annual Review
Review of policy adopted by the Board, 11 April 2025.
Photocure is committed
to Good Corporate
Governance
Photocure ASA (“Photocure” or the
“Company”) has made a strong
commitment to ensure trust in the
Company and to enhance shareholder
value through effective decision-
making and improved communication
between the management, the board
of directors and the shareholders. The
Company’s framework for corporate
governance is intended to decrease
business risk, maximize value and
utilize the Company’s resources in an
efficient, sustainable manner, to the
benefit of shareholders, employees and
society at large.
The Company will seek to comply with
the Norwegian Code of Practice for
Corporate Governance (the “Corporate
Governance Code”), last revised on
14 October 2021 and available at the
Norwegian Corporate Governance
Board’s web site www.nues.no, to the
extent not considered unreasonable
due to the Company’s size and stage
of development. The principal purpose
of the Corporate Governance Code
is (i) to ensure that listed companies
implement corporate governance
that clarifies the respective roles of
shareholders, the board of directors
and senior management more
comprehensively than what is required
by legislation and (ii) to ensure effective
management and control over activities
with the aim of securing the greatest
possible value creation over time
in the best interest of companies,
shareholders, employees and other
parties concerned.
The Company is subject to reporting
requirements for corporate governance
under the Accounting Act section
2-9 as well as Oslo Børs “Continuing
obligations of stock exchange listed
companies” section 4. The board of
directors will include a report on the
Company’s corporate governance
in each annual report including an
explanation of any deviations from
the Corporate Governance Code. The
corporate governance framework
of the Company is subject to annual
reviews and discussions by the board
of directors.
The following provides a discussion of
the Company’s corporate governance
in relation to each section of the
Corporate Governance Code for
the financial year 2024. Photocure’s
compliance with the Corporate
Governance Code is detailed in this
report and section numbers refer to the
Corporate Governance Code:
1. Implementation and
reporting on Corporate
Governance
The Company will seek to comply
with the Corporate Governance
Code. The board of directors shall
include a report on the Company’s
corporate governance in its annual
report, including an explanation of
any deviations from the Corporate
Governance Code.
Non-conformance with the
recommendation: None
2. Business
Photocure’s business is clearly defined
in the Company’s articles of association
(the “Articles of Association”). The
Company’s objectives, strategies
and risk profiles should be evaluated
at least annually to create value for
shareholders. Objectives and strategies
are presented in the annual report
and on the Company’s website
www.photocure.com.
25
The Company’s business is defined in
the following manner in the Articles of
Association section 3:
The purpose and main
business of the company is to
operate business related to
medical use of photodynamic
technology and other medical
methods of treatment, and
anything thereby connected.
The board of directors of the Company
has adopted several corporate
governance guidelines, including rules
of procedure for the board of directors,
instructions for the audit committee,
instructions for the compensation
committee, insider manuals, manual on
disclosure of information and guidelines
for corporate social responsibility.
The board of directors is responsible
for defining the Company’s strategies,
primary objectives and risk profile
and to support the Company’s
value creation to shareholders in a
sustainable way. The board of directors
has taken into account financial,
social and environmental factors when
defining the Company’s strategies,
primary objectives and risk profile.
The Company’s strategies, primary
objectives and risk profile are
evaluated by the board of directors
on an annual basis and are further
described in the annual report, ESG
report and on the Company’s website
www.photocure.com.
Non-conformance with the
recommendation: None
3. Equity and dividends
Capital Structure
On 31 December 2024, the Company’s
consolidated equity was NOK 501.7
million, an equity ratio of 68%. The
board of directors considers this equity
level to be satisfactory. The Company
had at 31 December 2024 interest-
bearing debt totalling NOK 143.1 million.
The Company’s capital structure and
financial strength is continuously
considered in light of its objectives,
strategy and risk profile.
Dividend Policy
Photocure is focusing its resources
on building a specialty pharma
company and the board of directors
will recommend payment of dividends
in line with the Company’s results,
financial position and outlook.
The Company, due to its level of
development, uneven revenue streams
and net cash flows, does not expect to
pay recurring dividends until justified
by recurring cash flows. The dividend
policy is disclosed in the annual report.
The ordinary general meeting resolves
the annual dividend, based on the
proposal by the board of directors.
The amount proposed sets an
upper limit for the general meeting’s
resolution.
Capital Increases and
Issuance of Shares
The board of directors currently
does not hold any authorization to
resolve increases of the Company’s
share capital. The board of directors
expects to propose that the general
meeting grants such authorizations for
purposes of meeting the Company’s
obligations pursuant to its incentive
programs and strategic purposes to
be able to strengthen the Company’s
equity. The authorizations will be
separate based on the corresponding
defined purposes. As such, any
proposed authorization will be
restricted to defined purposes. Further,
any proposed authorization will have a
limited duration and will not last longer
than to the Company’s next annual
general meeting.
26
Annual Report Photocure – Results 2024
Purchase of own Shares
The board of directors is authorized
by the general meeting to purchase
the Company’s own shares on behalf
of the Company. The authorization
is restricted to defined purposes
and does not last longer than to
the Company’s next annual general
meeting.
Non-conformance with the
recommendation: None
4. Equal treatment of
shareholders
Pre-Emption rights to
Subscribe
According to the Norwegian Public
Limited Liability Companies Act,
the Company’s shareholders have
pre- emption rights in share offerings
against cash contribution. Such pre-
emption rights may however be set
aside, either by the general meeting
or by the board of directors if the
general meeting has granted a board
authorization which allows for this. Any
resolution to set aside pre-emption
rights will be justified by the common
interests of the Company and the
shareholders, and such justification will
be publicly disclosed through a stock
exchange notice from the Company.
Trading in own shares
Photocure owns a total of 15.122 own
shares as of 31 December 2024.
Photocure has acquired 300,000
own shares during the financial year
2024/2025. The acquisition of shares
has been made under a share buy-
back program in accordance with the
authorization granted to the board of
directors by the Company’s annual
general meeting held on 23 May 2024
and in accordance with the principles
of the Market Abuse Regulation
and related regulations regarding
exemptions from market manipulation,
insider trading, and the disclosure of
inside information for share repurchase
programs. The share buy-back program
was carried out in the period from
and including 19 December 2024,
through 14 January 2025, the Company
acquired a total of 300,000 shares
at an average price of NOK 60.41 per
share, all acquired as ordinary market
transactions on Euronext Oslo Børs. The
acquisition was settled in January 2025
and will be recorded in the financial
year 2025.
In implementing the share buy-back
program, the board of directors has
ensured that all transactions have
been carried out through the trading
system at Oslo Børs at prevailing prices.
The board of directors has taken the
Company’s and shareholders’ interests
into consideration and maintained
transparency and equal treatment of all
shareholders.
Photocure has not sold any own shares
during the financial year 2024.
Non-conformance with the
recommendation: None
5. Shares and
negotiability
The shares of the Company are freely
transferable. There are no restrictions
on ownership, trading and voting for
shares in the Company pursuant to the
Articles of Association.
Non-conformance with the
recommendation: None
27
6. General meetings
The board of directors will make its best
efforts with respect to the timing and
facilitation of general meetings to ensure
that as many shareholders as possible
may exercise their rights by participating
in general meetings, thereby making the
general meeting an effective forum for
the views of shareholders and the board
of directors.
Notification
The notice for a general meeting, with
reference to or attached support
information on the resolutions to be
considered at the general meeting,
shall as a principal rule be sent to
shareholders individually, or to their
depository banks, no later than 21
days prior to the date of the general
meeting. The notice of meeting
includes information regarding
shareholders’ rights, guidelines for
registering and voting at the meeting.
The board of directors will seek
to ensure that the resolutions and
supporting information distributed
are sufficiently detailed and
comprehensive to allow shareholders
to form a view on all matters to be
considered at the meeting. The notice
and support information, as well as
a proxy voting form, will normally be
made available on the Company’s
website www.photocure. com no later
than 21 days prior to the date of the
general meeting.
Participation and Execution
Pursuant to the Articles of Association
section 9 shareholders who want to
participate at the general meeting
shall notify the Company thereof within
five days prior to the general meeting.
To the extent deemed appropriate
or necessary, the board of directors
will seek to arrange for the general
meeting to vote separately on each
candidate nominated for election to
the Company’s corporate bodies.
The chairperson of the board, the
chief executive officer and the chief
financial officer shall, as a general
rule, be present at the annual general
meeting. The board of directors and
the chairperson of the nomination
committee shall, as a general rule,
be present at general meetings. The
auditor should attend the ordinary
general meeting and any extraordinary
general meetings to the extent
required by the agenda items or other
relevant circumstances.
The chairperson of the board will
normally be chairing the general
meetings. The board of directors will
seek to ensure that an independent
chairperson is appointed if considered
necessary based on the agenda items
or other relevant circumstances.
The Company will prepare and
facilitate the use of proxy forms which
allow separate voting instructions
to be given for each item on the
agenda, and nominate a person who
will be available to vote on behalf of
shareholders as their proxy.
Non-conformance with the
recommendation: Photocure has
carried out one general meetings
during 2024 and certain prior years
where some of the board members
have not been able to participate.
The board has nevertheless been
represented at all general meetings,
including by the chairperson of the
board of directors.
7. Nomination
Committee
The nomination committee is
governed by the Articles of Association
section 7. In addition, the Company’s
general meeting adopts instructions
for the nomination committee.
The nomination committee shall
consist of two or three members
who shall be shareholders or
shareholder representatives. The
members shall be elected by the general
meeting for a term of one year. The
nomination committee shall give its
recommendation to the general meeting
on election of and compensation to
members of the board of directors and
members of the nomination committee.
The proposals shall be justified.
Shareholders are encouraged to submit
proposals to the nomination committee
for candidates for election to the board
of directors. Such proposals must be in
writing and justified and be submitted
minimum 2 months before the general
meeting if they are to be considered by
the nomination committee.
The nomination committee currently
consists of the following three
members: Robert Blatt (chairperson),
Hans Peter Bøhn and Lars Viksmoen.
The current members have been
elected by the general meeting with
a term until the Company’s ordinary
general meeting in 2025. All members
are independent of the board of
directors and senior management.
Non-conformance with the
recommendation: None
8. Composition and
independence of the
Board of Directors
Pursuant to the Articles of Association
section 5, the Company’s board of
directors shall consist of three to seven
members. The board of directors
currently consists of the following three
members: Dylan Hallerberg (chairperson),
Neal Shore and Ghizlane Tagmouti.
The chairperson of the board has been
elected by the general meeting. The term
of office for members of the board of
directors is one year at a time.
All members of the board are
considered independent of the
Company’s senior management,
material business contacts and the
Company’s main shareholders.
The Company’s annual report provides
information to illustrate the expertise of
28
Annual Report Photocure – Results 2024
the members of the board of directors
and their record of attendance at
board meetings. Board members
are encouraged to own shares in the
Company.
Non-conformance with the
recommendation: None
9. The work of the Board
of Directors
The Rules of Procedure for
The Board of Directors
The board of directors is responsible
for the over-all management of the
Company and shall supervise the
Company’s day-to-day management
and the Company’s activities in general.
The Norwegian Public Limited Liability
Companies Act regulates the duties
and procedures of the board of
directors. In addition, the board of
directors has adopted supplementary
rules of procedures, which provides
further regulation on inter alia the
duties of the board of directors and
the chief executive officer, the division
of work between the board of directors
and the chief executive officer, the
annual plan for the board of directors,
notices of board proceedings,
administrative procedures, minutes,
board committees, transactions
between the Company and the
shareholders and confidentiality.
The board shall produce an annual
plan for its work, with particular
emphasis on objectives, strategy and
implementation. The chief executive
officer shall at least once a month,
by attendance or in writing, inform
the board of directors about the
Company’s activities, position and
profit trend.
The board of directors’ consideration
of material matters in which the
chairperson of the board is, or has been,
personally involved, shall be chaired by
some other member of the board.
The board of directors shall evaluate
its performance and expertise
annually and make the evaluation
available to the nomination committee.
The board of directors has adopted
rules of procedures for the board
of directors, which inter alia include
guidelines for notification by members
of the board of directors and senior
management if they have any
material direct or indirect interest in
any transaction entered into by the
Company.
The rules of procedures for the board
of directors also includes a statement
on how the board of directors and
the senior management shall handle
agreements with related parties,
including whether an independent
valuation shall be obtained. The board
of directors shall include a report on
such agreements in the annual report.
The Audit Committee
The Company’s audit committee is
governed by the Norwegian Public
Limited Liability Companies Act and
a separate instruction adopted by the
board of directors.
The members of the audit committee
are appointed by and among the
members of the board of directors.
A majority of the members shall
be independent of the Company’s
senior management, and at least one
member shall have qualifications
within accounting or auditing. Board
members who are also members of
the senior management cannot be
members of the audit committee.
The principal tasks of the audit
committee are to:
prepare the board of directors’
supervision of the Company’s
financial reporting process;
monitor the systems for internal
control and risk management;
have continuous contact with the
Company’s auditor regarding the
audit of the annual accounts; and
review and monitor the
independence of the Company’s
auditor, including in particular the
extent to which services other than
auditing provided by the auditor or
the audit firm represent a threat to
the independence of the auditor.
The audit committee currently consists
of the following two members: Ghizlane
Tagmouti (chairperson) and Dylan
Hallerberg.
The Compensation Committee
The Company’s compensation
committee is governed by a separate
instruction adopted by the board
of directors. The members of the
compensation committee are appointed
by and among the members of the board
of directors and shall be independent of
the Company’s senior management.
The principal tasks of the
compensation committee are to
prepare:
proposals for guidelines for
remuneration of senior executives
and board of directors in accordance
with the Norwegian Public Limited
Liability Companies Act section 6-16a;
report on remuneration to senior
executives in accordance with the
Norwegian Public Limited Liability
Companies Act section 6-16b; and
other matters relating to
remuneration and other material
employment issues in respect of the
senior management.
The compensation committee currently
consists of the following two members:
Dylan Hallerberg (chairperson) and
Ghizlane Tagmouti.
Non-conformance with the
recommendation: None
29
Other committees
In addition to the Audit Committee
and the Compensation committee,
the board of directors has established
a scientific committee and an ESG
advisory committee headed by board
member Neal Shore, M.D.
10. Risk management
and internal control
The board of directors should on an
ongoing basis assess the Company’s
risks. Each year, as a minimum, the
board of directors has a thorough
assessment of the significant parts of
the Group’s business and outlook, in
order to identify risks and potential
risks, and remedy any incident that have
occurred. The board of directors may
engage external expertise if necessary.
The objective is to have the best
possible basis for, and control of, the
Company’s situation at any given time.
In addition to the annual risk assessment,
the management should present
quarterly financial statements that will
inform the board and shareholders on
current business performance, including
risk. These reports should be subject to
review at the board meetings.
Significant risks include strategic
risks, financial risks, liquidity risks
and operational risks. The Company’s
significant risks are assessed on an
ongoing basis and at least once a year
by the board.
The Company’s finance function is
responsible for the preparation of the
financial statements and to ensure
that these are prepared and reported
according to applicable laws and
regulations and in accordance with
IFRS. The audit committee performs
reviews of the quarterly and annual
financial statements with special focus
on transaction types which includes
judgments, estimates or issues with
major impact on the financial statement.
In addition to the quarterly and annual
reporting, the board of directors
receives monthly financial updates.
Management controls are performed at
a senior level in the Company.
Non-conformance with the
recommendation: None
11. Remuneration of the
Board of Directors
The remuneration of the board of
directors shall be decided at the
Company’s general meeting, and
should reflect the board of directors’
responsibility, expertise, time commitment
and the complexity of the Company’s
activities. The remuneration is not linked
to the Company’s performance.
The nomination committee shall give
a recommendation as to the size of
the remuneration to the board of
directors. Pursuant to the instructions
for the nomination committee, the
recommendation should normally be
published on the Company’s website at
least 21 days prior to the general meeting
that will decide on the remuneration.
The Company has implemented a board
option remuneration in accordance
with the approval by the annual general
meeting in 2022, under which the
board members of the Company have
received options to acquire shares in the
Company. The program was continued
in 2023 and 2024. Details regarding
the board option remuneration, inter
alia information on pricing, vesting
and exercise, can be found in the
nomination committee’s report and
recommendations to the annual general
meeting in 2022, 2023 and 2024.
Any remuneration in addition to normal
fees to the members of the board of
directors should be specifically identified
in the annual report.
Members of the board of directors
and/or companies with which they are
associated should not take on specific
assignments for the Company in addition
to their appointment as a member of
the board unless approved by the board
of directors. The remuneration for such
additional duties should be approved by
the board of directors. The Company has
entered into a consultancy agreement
with board member Neal D. Shore
pursuant to which Mr. Shore may provide
certain medical expert services to the
Company. The agreement is dealt with
and approved by the board. In 2024 the
Company has paid NOK 269 thousand
as remuneration pursuant to the
consultancy agreement with Mr. Shore.
Non-conformance with the
recommendation: The Company has
granted options to the members of the
board of directors. The board option
remuneration has been presented to and
approved by the general meeting of the
Company. Other than this, the Company
acts in compliance with the Corporate
Governance Code with regards to
remuneration of the board of directors.
12. Remuneration of the
senior management
The Company has in accordance
with the Norwegian Public Limited
Liability Companies Act established
guidelines for the remuneration of the
senior executives in the Company. The
remuneration guidelines have been
approved by the general meeting. The
remuneration guidelines shall be clear
and understandable, and shall contribute
to the Company’s business strategy, long-
term interests and financial sustainability.
The arrangements for salary and other
remuneration shall be simple and shall
ensure convergence of the financial
interests of the senior management and
the shareholders.
The Company aims to ensure that
performance-related remuneration is
based on quantifiable factors which the
employee in question can influence.
The remuneration guidelines are
available at www.photocure.com.
30
Annual Report Photocure – Results 2024
The compensation scheme for the
Company´s senior management is
based on a fixed salary, performance
related bonus (capped based on fixed
salary), a share incentive scheme,
pension benefits and certain other
benefits. Performance-related
remuneration is linked to value creation
for the shareholders over time, and is
based on quantifiable factors which the
employees in question can influence.
Non-conformance with the
recommendation: The maximum pay-
out under the option program is not
subject to an absolute limit. Other than
this, the Company acts in compliance
with the Corporate Governance Code
with regards to remuneration of the
senior management.
13. Information and
communications
General
The Company has targeted investor
relation activities with the aim to
consistently provide the market with
timely and accurate information.
The Company’s reporting of financial
and other information is based on
openness and takes into account
requirements for equal treatment of all
investors.
The board of directors has adopted
a separate manual on disclosure
of information, which sets forth the
Company’s disclosure obligations and
procedures. The board of directors will
seek to ensure that market participants
receive correct, clear, relevant and up-
to-date information in a timely manner,
taking into account the requirement for
equal treatment of all participants in
the securities market.
The Company will each year publish
a financial calendar, providing an
overview of the dates for major events
such as its ordinary general meeting
and publication of interim reports.
Information to Shareholders
The Company shall have procedures for
establishing discussions with important
shareholders to enable the board
of directors to develop a balanced
understanding of the circumstances
and focus of such shareholders.
Such discussions shall be done in
compliance with the provisions of
applicable laws and regulations.
All information distributed to the
Company’s shareholders will be
published on the Company’s web
site at the same time as it is sent to
shareholders. The chairperson of the
board and the chief executive officer
are authorized to speak on behalf of the
Company, and delegate such authority
as is appropriate in relevant cases.
Non-conformance with the
recommendation: None
14. Take-overs
In the event the Company becomes the
subject of a take-over offer, the board of
directors shall ensure that the Company’s
shareholders are treated equally and
that the Company’s activities are not
unnecessarily interrupted. The board
of directors shall also ensure that the
shareholders have sufficient information
and time to assess the offer.
The board of directors will not attempt
to influence, hinder or complicate the
submission of bids for the acquisition
of the Company’s operations or shares,
or prevent the execution thereof.
There are no defence mechanisms
against take-over bids in the Articles of
Association, nor have other measures
been implemented to specifically
hinder acquisitions of shares in the
Company. The board of directors
has not established written guiding
principles for how it will act in the event
of a take-over bid, as such situations
are normally characterized by concrete
and one-off situations which make a
guideline challenging to prepare.
In the event a take-over was to occur,
the board of directors will consider
the relevant recommendations in the
Corporate Governance Code and
whether the concrete situation entails
that the recommendations in the
Corporate Governance Code can be
complied with or not.
Non-conformance with the
recommendation: The Company has
not established separate principles for
how to act in a take-over situation as
described.
15. Auditor
The Company’s external auditor is
KPMG AS.
On an annual basis, the board of
directors reviews with the auditor the
Company’s internal control procedures,
including identified risk areas and
proposals for improvement, as well as
the main features of the plan for the
audit of the Company.
Furthermore, the auditor participates
in meetings of the board of directors
that deal with the annual accounts
and, at least once a year, carries out a
review of the Company’s procedures
for internal control in collaboration with
the audit committee. At least one board
meeting with the auditor shall be held
each year in which no member of the
senior management is present.
The board of directors has established
guidelines in respect of the use of the
auditor by the senior management for
services other than the audit.
The remuneration to the auditor will
be approved by the ordinary general
meeting. The board of directors will
report to the general meeting details
of fees for audit work and any fees for
other specific assignments.
Non-conformance with the
recommendation: None
31
Financial
Statements
Photocure ASA
STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE INCOME
STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER
STATEMENT OF CASH FLOWS
STATEMENT OF CHANGES IN EQUITY
32
Annual Report Photocure – Results 2024
STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME
Parent Group
2024 2023 Amounts in NOK 1 000 Notes 2024 2023
300 033 280 281 Revenues from contract with customers 1, 2, 3 491 675 446 214
33 713 54 443 Signing fees and milestone revenues 1, 2, 3 33 713 54 443
333 746 334 724 Total revenues 525 387 500 657
-29 297 -25 389 Cost of goods sold 4 -30 716 -26 137
304 449 309 335 Gross profit 494 671 474 521
531 504 Other income - -
-16 223 -12 615 Indirect manufacturing expenses 5 -16 223 -12 615
-3 631 -2 070 Research and development expenses 5 -3 631 -2 070
-203 671 -210 863 Marketing and sales expenses 5 -354 928 -334 940
-74 475 -69 501 Other operating expenses 5, 6, 7, 8 -99 490 -97 089
-297 469 -294 545 Total other income and expenses -474 272 -446 714
6 980 14 790 Operating profit/loss(-) 20 399 27 807
67 159 33 930 Financial income 9, 10 24 927 24 554
-38 846 -40 804 Financial expenses 9, 10 -36 937 -41 177
- -5 828 Remeasure financial balances 9, 10 - -1 444
28 313 -12 703 Net financial profit/loss(-) -12 010 -18 067
35 294 2 087 Profit/loss(-) before tax 8 390 9 740
-10 406 -5 644 Income tax 11 -11 729 -8 761
24 888 -3 557 Net profit/loss(-) -3 340 979
Currency translation 5 239 -1 021
Total other comprehensive income items
that may be reclassified to profit & loss 5 239 -1 021
Comprehensive income 1 899 -42
Earnings per share (Amounts in NOK): 12
Basic -0.12 0.04
Diluted -0.12 0.04
33
STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER – ASSETS
Parent Group
2024 2023 Amounts in NOK 1 000 Notes 2024 2023
ASSETS
95 865 112 537 Customer relations 13 95 865 112 537
144 000 144 000 Goodwill 13 144 000 144 000
10 158 12 593 Property, plant, equipment and other assets 14 36 173 33 529
393 841 340 918 Loan to group company 10, 11 - -
26 626 22 696 Shares in subsidiaries 15 - -
39 070 49 476 Deferred tax asset 11 39 070 49 476
709 560 682 219 Total non-current assets 315 107 339 541
36 494 34 411 Inventories 16 39 536 37 190
56 182 43 602 Accounts receivable 17, 19 66 856 59 704
11 767 8 268 Other receivables 17, 19 23 737 16 033
259 400 238 252 Cash and short term deposits 18, 20 293 852 259 504
363 843 324 533 Total current assets 423 981 372 431
1 073 403 1 006 752 Total assets 739 088 711 973
34
Annual Report Photocure – Results 2024
STATEMENT OF FINANCIAL POSITION AS OF 31 DECEMBER  EQUITY AND LIABILITIES
Parent Group
2024 2023 Amounts in NOK 1 000 Notes 2024 2023
EQUITY AND LIABILITIES
13 560 13 560 Share capital 21 13 560 13 560
477 542 460 572 Other paid-in capital 477 542 460 572
342 051 317 162 Retained earnings 10 614 8 716
833 152 791 294 Total equity 501 716 482 848
117 126 127 680 Earnout liability 22 117 126 127 680
1 994 1 701 Pension liabilities 8 5 722 4 322
4 577 6 875 Lease liabilities 22 10 660 13 974
123 696 136 256 Total non-current liabilities 133 507 145 976
72 164 14 544 Accounts payable 17, 23 19 443 19 660
2 424 2 205
Employee withholding taxes, social security tax and
VAT 2 594 1 230
12 267 11 292 Short term part non-current liabilities 22 15 784 14 017
29 700 51 161 Other current liabilities 17, 23 66 045 48 241
116 554 79 202 Total current liabilities 103 865 83 148
240 250 215 458 Total liabilities 237 372 229 125
1 073 403 1 006 752 Total equity and liabilities 739 088 711 973
Dylan Hallerberg
Chairperson
Neal Shore
Director
Dan Schneider
President and CEO
Ghizlane Tagmouti
Director
Oslo, 11 April 2025
Photocure ASA
35
STATEMENT OF CASH FLOWS
Parent Group
2024 2023 Amounts in NOK 1 000 Notes 2024 2023
35 294 2 087 Profit/loss (-) before tax 8 390 9 740
20 931 20 803 Ordinary depreciation & amortisation 13, 14 28 798 27 687
13 040 14 631 Share-based payments expense 6 16 970 20 156
293 328 Pension costs 8 1 400 1 127
-11 739 -11 122 Interest income 9 -12 868 -11 712
27 616 25 965 Interest expenses 9 28 073 26 336
- 1 444 Remeasured earnout 13, 22 - 1 444
-43 361 -9 965 Unrealized currency (gain)/loss loan subsidiary 9 - -
-65 857 Unrealized currency (gain)/loss other -65 858
-799 -1 739 Other items 4 399 -738
Changes in
-2 083 -9 999 - inventories -2 346 -10 656
-16 079 -13 615 - trade and other receivables -14 856 -12 118
57 620 -1 323 - trade and other payables -218 -1 620
-20 010 17 417 - provisons and other accruals 20 396 2 482
- 4 384 Loss allowance internal loan - -
- -1 151 Settlement employee benefits - -1 560
- - Tax paid 11 -1 323 -3 117
60 658 39 002 Net cash flow from operating activities 76 750 48 309
11 739 11 122 Interest received 12 868 11 712
-9 562 -19 907 Loan to subsidiary 10 - -
-1 673 -1 918 Investments in systems and equipment 14 -11 446 -12 306
504 -10 703 Net cash flow from investing activities 1 422 -594
-2 556 -1 669 Lease offices and company cars 14, 22 -5 945 -8 475
- -12 500 Loan financial institution 22 - -12 500
-323 -540 Interest paid financial loans -742 -912
-37 135 -34 397 Earnout liability 22 -37 135 -34 397
-40 014 -49 106 Net cash flow from financing activities -43 822 -56 284
21 148 -20 807 Net change in cash during the year 34 350 -8 569
238 252 259 058 Cash and cash equivalents as of 01 January 259 504 268 073
259 400 238 252 Cash and cash equivalents as of 31 December 293 852 259 504
36
Annual Report Photocure – Results 2024
STATEMENT OF CHANGES IN EQUITY - Parent Company
Parent company
(Amounts in NOK 1 000)
Issued
capital
Treasury
shares
Other
paid-in
equity
Translation
reserve
Retained
earnings
Total
equity
Equity as of 31 December 2022 13 560 -301 440 718 - 320 293 774 271
Comprehensive income:
Net profit for the year -3 557 -3 557
Adjustment previous year 423 423
Other comprehensive income
that may be reclassified to p&l -
Total comprehensive income - - - - -3 134 -3 134
Transaction with owners:
Capital increase -
Sale own shares -
Buy back own shares -
Employees' options 20 156 20 156
Total transaction with owners - - 20 156 - - 20 156
Equity as of 31 December 2023 13 560 -301 460 874 - 317 160 791 294
Comprehensive income:
Net profit for the year 24 888 24 888
Adjustment previous year -
Other comprehensive income
that may be reclassified to p&l -
Total comprehensive income - - - - 24 888 24 888
Transaction with owners:
Capital increase -
Sale own shares -
Buy back own shares -
Employees' options 16 970 16 970
Total transaction with owners - - 16 970 - - 16 970
Equity as of 31 December 2024 13 560 -301 477 844 - 342 047 833 152
37
STATEMENT OF CHANGES IN EQUITY - Group
Group
(Amounts in NOK 1 000)
Issued
capital
Treasury
shares
Other
paid-in
equity
Translation
reserve
Retained
earnings
Total
equity
Equity as of 31 December 2022 13 560 -300 440 717 118 8 638 462 733
Comprehensive income:
Net profit for the year 979 979
Other comprehensive income
that may be reclassified to p&l -1 021 -1 021
Total comprehensive income - - - -1 021 979 -42
Transaction with owners:
Capital increase -
Sale own shares -
Buy back own shares -
Employees' options 20 156 20 156
Total transaction with owners - - 20 156 - - 20 156
Equity as of 31 December 2023 13 560 -300 460 873 -903 9 617 482 848
Comprehensive income:
Net profit for the year -3 340 -3 340
Other comprehensive income
that may be reclassified to p&l 5 239 5 239
Total comprehensive income - - - 5 239 -3 340 1 899
Transaction with owners:
Capital increase -
Sale own shares -
Buy back own shares -
Employees' options 16 970 16 970
Total transaction with owners - - 16 970 - - 16 970
Equity as of 31 December 2024 13 560 -300 477 843 4 336 6 277 501 716
38
Annual Report Photocure – Results 2024
Accounting
principles 2024
I. General information
The annual accounts for 2024 for
Photocure Group (Photocure) include
Photocure ASA and its four wholly
owned subsidiaries: Photocure Inc.
registered in the U.S., Photocure GmbH
registered in Germany, Photocure SAS
registered in France, and Photocure
Canada Inc. registered in Canada. The
Board of Directors approved the annual
accounts for Photocure for publication
on April 11, 2025.
Photocure ASA is a public limited
company based in Norway. The
business activities of the Group involve
research, development, production,
distribution, marketing, and sales
of pharmaceutical products. The
Company’s shares are listed on the
Oslo Stock Exchange. The Parent
Company’s registered office is located
at Hoffsveien 4, NO-0275 Oslo, Norway.
II. Basis for preparation
of the annual accounts
The annual accounts for the Group
and the Parent Company are prepared
based on historical cost, except for
money market funds and earnout
liability, which are valued at fair value.
The Group and the Parent Company’s
annual accounts comply with IFRS
Accounting Standards as specified by
the International Accounting Standards
Board and adopted by the European
Union as of 31 December 2024.
Photocure ASA uses NOK (Norwegian
kroner) as its functional and
presentation currency. Unless stated
otherwise, all financial information
is reported in whole thousands. As a
result of rounding adjustments, figures
in the financial statements may not sum
to the totals.
Photocure performs sales and
distribution of Hexvix in the European
markets through wholly owned
subsidiaries in Germany (Photocure
GmbH) and France (Photocure SAS),
which provide marketing and promotion
services. These entities use the Euro
(EUR) as their functional currency. In
North America, sales, marketing, and
distribution are managed under the
trade name Cysview by wholly owned
subsidiary Photocure Inc. in the U.S.
and Photocure Canada Inc. in Canada.
Photocure Inc. uses U.S. dollars (USD) as
its functional currency, while Photocure
Canada Inc. operates in Canadian
dollars (CAD).
III. Changes in significant
accounting policies
There are no significant new IFRS
standards taking effect in 2024 that
impact the group accounts of Photocure.
39
IV. Disclosures regarding
new standards not yet
effective
There are no IFRS or IFRIC inter-
pretations that are not yet effective,
which would be expected to materially
impact the Group. The new and
amended standards and interpretations
from IFRS adopted by the EU with effect
from 2024 did not significantly impact
the reporting for 2024.
V. Use of judgements and
estimates
During the preparation of these
consolidated financial statements,
management has made judgments,
estimates, and assumptions that
impact the application of the Group’s
accounting policies and the reported
amounts of assets, liabilities, income,
and expenses. Actual results may vary
from these estimates.
Estimates and underlying assumptions
are continually reviewed. Any
revisions to estimates are recognized
prospectively. This includes information
about judgments made in applying
accounting policies that significantly
affect the amounts recognized, as well
as information about assumptions and
estimation uncertainties that have a
significant risk of resulting in material
adjustments to the financial statements.
The following notes are relevant as of
31 December 2024:
Note 13 and 22: Goodwill and
customer relations - assumptions for
IAS 36 goodwill impairment analysis
and IFRS 9 fair value remeasurement
of earnout liability.
Note 11: Recognition of deferred
tax asset - future taxable profit for
utilizing carried forward tax losses.
Note 9 and 10: Long term loan
subsidiaries - impairment and key
balance sheet assumptions in
Parent company.
Judgments in Relation to
Accounting Principles
Photocure adheres to the International
Financial Reporting Standards (IFRS)
and ensures transparency in its
accounting principles. In accordance
with IAS 1.122, Photocure discloses
judgments made in relation to
accounting principles, especially
those that are not straightforward and
require such judgments. This includes:
Foreign Exchange Gains/Losses:
According to IAS 21.15 and IAS 21.32,
foreign exchange gains and losses
arising on a monetary item that
is part of a reporting entity’s net
investment in a foreign operation
should be recognized initially in
other comprehensive income and
reclassified from equity to profit
or loss upon disposal of the net
investment
Other Judgments: Photocure has
made judgments in relation to other
accounting principles that may
have a significant effect on the
amounts recognized in the financial
statements. These judgments are
documented and disclosed in the
accounting principles to ensure
transparency and understanding of
the accounting decisions
VI. Summary of
important guidelines
for accounting for
the Group
A. Currency
Foreign currency transactions are
recorded at the exchange rate on the
transaction date. Assets and liabilities
in foreign currencies are translated
into NOK at the balance sheet date’s
exchange rate. Unless stated otherwise,
realized and unrealized exchange
rate gains and losses are included in
financial income or expenses.
B. Property, plant, equipment
and intangible assets
Property, plant, and equipment (PPE)
are recognized at their cost, net
of accumulated depreciation and
accumulated impairment losses. PPE are
depreciated over their estimated useful
lives, considering any residual value.
Expenditures incurred for significant
replacements and upgrades of PPE
are capitalized if it is probable that
these costs will yield future economic
benefits to the Group and if they can be
reliably measured. Routine maintenance
expenses are recognized as incurred.
PPE are depreciated on a straight-line
basis over the estimated useful life of
the asset as follows:
Production and test
equipment 5 years
Furniture and office
equipment 3–5 years
Intangible development expenditures
are amortized on a straight-line basis
as follows:
Product development 4 - 10 years
Customer relations 10 years
C. Impairment
Non-current and intangible assets
recognized in the balance sheet are
subject to impairment testing if there are
indications of a decline in value. If the
carrying amount of an asset exceeds
its recoverable amount, the impairment
loss is recorded in the profit and loss
statement. The recoverable amount
is the higher of the net sale value and
the value in use of the asset. Assets
are grouped and measured at the
lowest level for which identifiable cash
flows are largely independent when
determining impairment.
Goodwill undergoes annual impairment
testing. For this purpose, assets gene-
rating cash inflows from continuing use
40
Annual Report Photocure – Results 2024
that are largely independent from other
assets or cash-generating units (CGU)
are grouped together. The recoverable
amount of the asset is the greater of its
value in use and its fair value less costs
of disposal. Value in use is determined
based on estimated future cash flows,
discounted to their present value using a
pre-tax discount rate that reflects current
market assessments of the time value of
money and the risks specific to the asset.
An impairment loss is initially allocated
to reduce the book value of the
goodwill related to the CGU, followed
by a pro-rata reduction of the carrying
amounts of the other assets within the
CGU. Impairment losses concerning
goodwill are not reversed.
D. Research and
development costs
Research costs are expensed as they
are incurred. Development costs are
recognized on the balance sheet as
intangible assets only if there is an
identifiable asset expected to generate
future financial benefits, and if the
costs of such an asset can be reliably
measured. Development costs that have
been expensed in previous accounting
periods cannot be later recognized
on the balance sheet. Cost-sharing of
research and development expenses
with license partners is recorded as a
reduction in costs.
The tasks of the regulatory function
and services provided are related to
both market expansion and product
development. For this reason, Photocure
classifies the regulatory function into the
following two categories:
Regulatory work and services
related to new products or product
development based on new clinical
trials up to and including phase 3
are classified as R&D costs.
Regulatory work and services for
new markets based on existing
clinical data are classified as
marketing costs.
E. Investment in subsidiary
companies
Long-term investments are recorded
in the balance sheet at the lower of
cost or fair value. Permanent declines
in value lead to write-downs based on
individual assessments. Any profits,
losses, or write-downs for these
investments are recorded in the
income statement as financial items.
F. Inventories
Raw materials are valued at the lower
of cost and net sales value following
the first-in, first-out (FIFO) method.
Semi-finished and finished goods
are valued at production cost, which
includes a portion of the indirect
production costs, also based on the
FIFO method.
G. Financial assets and
liabilities
All financial assets not measured at
amortized cost or fair value through
comprehensive income are measured
at fair value through profit and loss.
Photocure’s money market fund
investments follow this rule.
The earnout liability is measured at
fair value on the acquisition date and
remeasured at each reporting date, with
changes recognized in profit or loss.
Interest-bearing liabilities are
initially recognized at fair value and
subsequently booked at amortized
cost using the effective interest rate
method.
Financial income includes interest
from bank balances and money
market funds, and exchange rate gains.
Financial expense comprises interest on
borrowings and exchange rate losses.
Impairment
The Group recognizes loss allowances for
expected credit losses (ECLs) on financial
assets measured at amortized cost.
The Group measures most loss
allowances at an amount equal to
lifetime ECLs, except for the following,
which are measured at 12-month ECLs:
Debt securities with low credit risk
at the reporting date.
Other debt securities and bank
balances without significant credit
risk increase since initial recognition.
The Group considers a financial asset’s
credit risk increased if it is over 60 days
past due.
Trade receivables and contract assets
always have loss allowances measured
at lifetime ECLs. The Group uses an
allowance matrix based on historical
losses adjusted for forward-looking
information.
H. Revenue recognition
The company’s primary revenue comes
from pharmaceutical product sales,
recognized on delivery when control and
risk transfer to the customer. License fees
and milestones are recorded as revenue
when contractual conditions are met.
Royalty revenue aligns with the licensee’s
sales.
IFRS 15 mandates revenue recognition
based on transferring promised goods
or services to customers for an agreed
amount. The five-step approach
includes identifying customer contracts,
performance obligations, transaction
prices, allocating prices, and recognizing
revenue upon satisfaction of obligations.
Photocure’s up-front fees not tied to
separate obligations are recognized
over the contract term upon delivery.
If granting a license is distinct, it
becomes a separate obligation. The total
transaction price, including up-front
fees, milestone payments, and royalties,
is allocated based on standalone selling
prices. Variable milestone payments are
recognized when achieved, and sales-
based royalties are recognized when
sales occur.
41
I. Share remuneration and
other benefits related to
share based remuneration
Employees are granted share options as
part of the Group’s employee incentive
policy. If the Group holds its own shares,
it may allocate these instead of issuing
new shares upon the exercise of share
options. All share options are offered
at strike prices set at 10% above the
market price at the time the rights are
allotted.
The fair value of the share options
is expensed over the vesting period,
resulting in a corresponding increase
in the Company’s equity. The fair
value is determined using the Black-
Scholes model, with each program
being calculated separately based on
the specific strike price and duration.
Share options become invalid when
an employee leaves the Company.
Employer’s social security contributions
on outstanding share options are
accrued as personnel costs based on the
intrinsic value of the rights.
J. Tax
The tax expense in the income
statement encompasses both the
income tax payable for the period and
the changes in deferred tax. Deferred
tax is calculated at a rate of 22% in
Norway and 21% in the USA, based
on the temporary differences existing
between the tax value of assets and
liabilities and their book value.
Liabilities for deferred tax are
recognized for all temporary
differences that increase tax, except
when the asset associated with
deferred tax arises from the initial
recognition of an asset or liability
in a transaction that is not part of a
business combination and does not
affect either accounting profit or
taxable profit or loss at the time of the
transaction.
Assets related to deferred tax are
recognized for all tax-reducing
temporary differences, carryforwards
of tax deductions, and tax losses to the
extent that there is objective evidence
indicating that sufficient taxable
profits will be available to offset these
tax-reducing temporary differences,
unused tax deductions, and tax losses.
The book value of deferred tax assets
is reviewed on each balance sheet
date and is reduced to the extent that
there is no longer objective evidence
that sufficient taxable profits will be
available to utilize all or part of the
deferred tax assets. Non-recognized
deferred tax assets are re-evaluated
on each balance sheet date and are
recognized to the extent that it is
probable that future taxable profits will
facilitate the recovery of these deferred
tax assets. Each taxable entity within
the Group is treated separately.
K. Contingent liabilities
and assets
Contingent liabilities are defined as:
Potential liabilities arising from
past events, with their existence
dependent on future occurrences;
Liabilities excluded from the
accounts due to the improbability of
resulting in an outflow of resources
from the Group;
Liabilities that cannot be measured
with adequate reliability.
Contingent liabilities are not included
in the annual accounts. However, notes
are provided for significant contingent
liabilities, except for those with a low
probability of occurrence.
Contingent assets are not included in
the annual accounts but are reported
when there is a certain likelihood of
benefiting the Group.
L. Cash flow statement
The cash flow statement has been
prepared in accordance with the
indirect method. Cash and cash
equivalents consist of cash, bank
deposits and other current investments
like money market funds.
M. Lease agreements
The primary rule is that leased assets
are recognized in the balance sheet as
a fixed asset or in a disclosure note for
fixed assets. Leased assets are shown
separately from other fixed assets
owned by the company as “Right of use
assets” in the related disclosure note.
Although a lease represents a right to
use an asset rather than a purchase,
the classification in the balance sheet
aligns with the leased asset.
The net present value of the lease
liability is calculated by discounting
the rental payments using the implicit
interest rate of the lease, or the
business’s marginal borrowing rate if
the implicit interest rate is unknown.
Under IFRS 16, depreciation is
calculated for the right of use assets.
Depreciation is presented together with
other depreciation, while interest cost
is included in financial expenses in the
income statement.
Leased assets are depreciated over
their useful lives, which is the shorter
of the rental period and the assets’
economic life.
42
Annual Report Photocure – Results 2024
43
Notes to the
Financial
Statements
for 2024
Photocure ASA
1 PARTNERSHIPS
2 OPERATING SEGMENTS
3 REVENUES FROM CONTRACT WITH CUSTOMERS
4 COST OF GOODS SOLD
5 INCOME STATEMENT CLASSIFIED BY NATURE
6 PERSONNEL EXPENSES
7 REMUNERATION OF MANAGEMENT AND
BOARD OF DIRECTORS
8 PENSION COSTS
9 FINANCIAL INCOME AND EXPENSE
10 RELATED PARTY
11 TA X
12 EARNINGS PER SHARE
13 GOODWILL AND CUSTOMER RELATIONS
14 PROPERTY, PLANT, EQUIPMENT AND
OTHER ASSETS
15 SUBSIDIARIES
16 INVENTORIES
17 FINANCIAL RISK
18 FAIR VALUE
19 RECEIVABLES
20 CASH AND SHORT TERM DEPOSITS
21 SHARE CAPITAL
22 LOAN TERMS AND REPAYMENT
23 ACCOUNTS PAYABLE AND OTHER
CURRENT LIABILITIES
24 SUBSEQUENT EVENTS
44
Annual Report Photocure – Results 2024
0. CURRENCY RATES CHANGES
Photocure’s revenues and costs are predominantly in EUR and USD, while the functional currency is NOK. In 2024, the strengthening
of the USD and EUR impacted both revenues and costs. The following table illustrates the average currency rates between NOK and
USD/EUR in 2024 compared to 2023.
Currency rates development 2024 vs 2023:2024 2023 % 24 vs 23Average currency rate NOK/USD 10.74 10.57 2%Average currency rate NOK/EUR 11.63 11.43 2%
1. PARTNERSHIPS
In July 2019, Photocure entered into a license agreement with Asieris MediTech Co, granting them a worldwide license to develop
and commercialize Cevira
®
for the treatment of HPV-induced cervical precancerous lesions. Under this agreement, Photocure will
receive signing fees, development and approval milestones, as well as sales royalties.
In January 2021, Photocure entered into another license agreement with Asieris MediTech Co, granting them a license to
commercialize Hexvix in mainland China and Taiwan. Under this agreement, Photocure will receive signing fees and approval
milestones, in addition to sales royalties.
2. OPERATING SEGMENTS
Photocure operates through two segments: the Commercial Franchise and the Development Portfolio. The Commercial Franchise
includes Hexvix/Cysview by geography (North America and Europe) and other sales (partners and other products). The Development
Portfolio focuses on the development of pipeline products.
The Development segment is divided into the development of Cevira and other pipeline products.
Operating costs are directly charged to the respective segment if they are directly related. Indirect manufacturing costs are allocated
based on sales within the Commercial segment, while other indirect costs are allocated based on the time and resources utilized
within the different subsegments.
Segments are reported in a manner consistent with internal reporting to the Group’s Chief Operating Decision Makers (CODM),
defined as the Group’s senior management. Segment assets and liabilities are not reported to the CODM and are therefore not
allocated to reportable segments.
1 Jan - 31 December 2024 Commercial Franchise Development PortfolioNorth Am. Europe OtherTotalPDT &TotalGrand(Amounts in NOK 1 000)MarketsSales CeviraExplorativR&DTotalRevenues from contract 202 322 285 561 1 865 489 749 1 926 - 1 926 491 675 with customers Signing fees and milestone - - - - 33 713 - 33 713 33 713 revenuesCost of goods sold -5 889 -23 236 -225 -29 349 -1 367 - -1 367 -30 716 Gross profit 196 434 262 326 1 641 460 400 34 271 - 34 271 494 671 Gross profit of sales % 97% 92% 88% 94% 29% 29% 94%R&D -753 -2 724 -108 -3 585 -729 682 -47 -3 632 Sales & marketing -178 339 -144 679 -4 155 -327 173 -1 497 -5 141 -6 638 -333 811 Other & allocations -38 458 -50 864 -6 066 -95 388 -1 881 -10 767 -12 648 -108 036 Operating expenses -217 550 -198 267 -10 329 -426 146 -4 107 -15 226 -19 333 -445 479 EBITDA -21 116 64 059 -8 688 34 254 30 164 -15 226 14 938 49 192 Depreciation and Amortization -28 695 -98 -28 793 EBIT 5 559 14 840 20 399
45
1 Jan - 31 December 2023 Commercial Franchise Development PortfolioNorth Am. Europe OtherTotalPDT &TotalGrand(Amounts in NOK 1 000)MarketsSales CeviraExplorativR&DTotalRevenues from contract 178 630 263 547 4 037 446 214 - - - 446 214with customers Signing fees and milestone - - - - 54 443 - 54 443 54 443revenuesCost of goods sold -5 866 -19 286 -986 -26 137 - - - -26 137Gross profit 172 764 244 262 3 051 420 077 54 443 - 54 443 474 520Gross profit of sales % 97 % 93 % 76 % 94 % 94 %¢R&D -254 -867 - -1 113 -818 -139 -957 -2 070Sales & marketing -164 622 -147 079 -3 621 -315 322 -941 - -941 -316 262Other & allocations -37 369 -43 947 -5 009 -86 325 -1 693 -12 677 -14 370 -100 695Operating expenses -202 242 -191 893 -8 630 -402 760 -3 452 -2 816 -16 268 -419 028EBITDA -56 292 52 369 -5 579 17 317 50 991 -12 816 38 175 55 492Depreciation and Amortization -27 541 -146 -27 687EBIT -10 224 38 029 27 807
The definition of EBITDA is “Earnings Before Interest, Tax, Depreciation and Amortization.
3. REVENUES FROM CONTRACT WITH CUSTOMERS
Performance obligation product deliveries
For the general supply of products, Photocure satisfies the contractual performance obligation upon delivery according to the agreed
terms. Invoices are issued at that point, with payment terms typically within 30 days. No discounts were provided to customers, and no
product returns were accepted within the product expiry period.
Performance Obligation: License
Cevira
In July 2019, Photocure entered into a license agreement with Asieris for the pipeline product Cevira. The agreement was based on a
“ready for Phase 3 study” concept, with the study conducted by Asieris in China from 2020 until September 2023. Under the agreement,
Photocure transferred the rights for Cevira (license agreement) and entered into a supply agreement for the active substance for the
Phase 3 clinical study and potential commercialization. Asieris is responsible for the remaining development of Cevira and will cover
all associated costs. The license grants Asieris the right to use Photocure’s intellectual property as it existed at the contract date. The
active substance will not be further developed or modified by Photocure for Asieris’s use. The transfer of the license and the delivery of
the active substance are regarded by Photocure as two separate performance obligations.
In 2024, Asieris paid a milestone of USD 2 million after Cevira was accepted for regulatory review in China in May 2024. In 2023
Photocure received two times USD 2.5 million in milestone payments from Asieris. To date, Asieris has paid USD 17 million in milestones
for Cevira. The agreement includes additional regulatory and sales milestones, as well as sales royalties if a commercial product is
approved. The transaction price allocated to the license consists of a signing fee, various milestone payments, and sales-based royalty
payments. The portion of the transaction price related to milestone payments is estimated as the most likely amount but is constrained,
meaning these revenues will be recognized if and when the relevant milestones are achieved. Revenue for the sale of the active
substance is recognized when the customer takes control of the goods, which occurs at the time of shipment.
Hexvix
In January 2021, Photocure entered into a partnership agreement with Asieris, granting them exclusive rights to register and
commercialize Hexvix
®
in Mainland China and Taiwan. Asieris received marketing authorization for Hexvix
®
in China in November 2024,
for which Photocure received a USD 1.1 million milestone payment. To date, Asieris has paid USD 1.85 million in milestones for Hexvix.
The license of the Group’s intellectual property under all current licensing agreements is considered distinct from the delivery of goods
and thus a separate performance obligation. Furthermore, the licenses are considered to be a right to use the company’s intellectual
property as is, and therefore revenue allocated to the license is recognized at a point in time, taking into consideration the variable
constraint for milestone payments that have not yet occurred and sales-based royalties. Milestone payments related to future events
and sales-based royalties are recognized when the events and sales actually occur.
46
Annual Report Photocure – Results 2024
Geographical information(Amounts in NOK 1 000)Group revenues from contract with customers 2024 2023Nordic countries 22 214 22 390Germany 199 937 182 199France 33 414 31 404Austria 12 723 12 070UK 2 456 2 411BeNeLux 5 694 5 804Italy 5 510 5 057Other European countries 4 129 3 025United States 201 616 175 845Canada 2 055 2 785Own sales 489 748 442 990Partner countries rest of world 1 927 3 224491 675 446 214
The geographical revenue in all countries except North America are in the parent company.
The geographical revenue information is based on the location of the end customers.
The signing fees and milestone revenue are not included in the table above.
Revenue recognition by segments1 Jan - 31 December 2024 Commercial Franchise Development PortfolioHexvix/CysviewGrandTotal(Amounts in NOK 1 000) Own sales Partner OtherTotalTotalSalesSales PipelineR&DContract revenue at point in time - 3 276 3 276 - 3 276Signing fees and milestone - 33 713 33 713 33 713revenues at point in timeSales order revenue at point 487 883 516 488 399 - 488 399in time487 883 - 3 792 491 675 33 713 33 713 525 387
Revenue recognition by segments1 Jan - 31 December 2023 Commercial Franchise Development PortfolioHexvix/CysviewGrandTotal(Amounts in NOK 1 000) Own sales Partner OtherTotalPipeline TotalSalesSalesR&DContract revenue at point in time 1 700 1 524 3 224 - 3 224Signing fees and milestone - 54 443 54 443 54 443revenues at point in timeSales order revenue 442 177 813 442 990 - 442 990at point in time442 177 1 700 2 337 446 214 54 443 54 443 500 656
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4. COST OF GOODS SOLD
Total cost of goods sold includes direct materials, services provided by contract manufacturers and packaging suppliers, products
freights and distribution costs.
5. INCOME STATEMENT CLASSIFIED BY NATURE
(Amounts in NOK 1 000) Group ParentNote 2024 2023 2024 2023Revenues from contract with customers 2 491 675 446 214 300 033 280 281Signing fees and milestone revenues 2 33 713 54 443 33 713 54 443Cost of goods sold -30 716 -26 137 -29 297 -25 389Gross profit 494 671 474 521 304 449 309 335Other income - - 531 504Payroll expenses 6, 7 -285 700 -276 192 -124 027 -117 117R&D costs excluding payroll expenses/other operating expenses -47 -964 -47 -964Ordinary depreciation and amortisation 13, 14 -28 793 -27 687 -20 931 -20 803Other operating expenses -159 732 -141 871 -152 995 -156 165Total operating expenses -474 272 -446 714 -297 469 -294 545Operating profit / loss (-) 20 399 27 807 6 980 14 790
Specification of Other operating expenses: 2024 2023 2024 2023Marketing expenses 38 742 37 493 16 460 15 691Profit split coverage US and Canada - - - 158Sales and marketing costs Europe - - 67 331 79 484Travel expenses 22 769 21 152 7 457 5 028Patent costs, legal and other fees 54 941 47 464 38 683 32 840Other expenses 43 281 35 763 23 063 22 965Total other operating expenses 159 732 141 871 152 995 156 165
6. PERSONNEL EXPENSES
(Amounts in NOK 1 000) Group ParentNote 2024 2023 2024 2023Salaries 217 236 208 298 85 993 83 636Employer’s social security contributions on salaries, etc. 23 488 23 885 10 195 9 662Option costs incl employer's social security contributions 16 878 19 368 12 948 13 843Pension costs 8 13 061 13 976 5 374 5 988Other benefits 15 038 10 665 9 517 3 989Total payroll expenses 285 700 276 192 124 027 117 117No. of full-time equivalent positions 101 102 33 36
Share-based remuneration
As part of the company’s incentive policy, employees have been offered share options to the company’s shares (referred to as
‘options’). Allocated share options vest over three years: 25% after the first year, 25% after the second year, and 50% after the third
year. The rights expire after seven years or upon termination of the employee. Share option programs in 2023 and earlier had an
expiration date of five years.
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Annual Report Photocure – Results 2024
The number of employee share options and average exercise prices for Photocure, and developments during the year:
2024 2023Average Average exercise price exercise price Number(NOK) Number(NOK)Outstanding at start of year 2 076 178 80.55 1 922 778 116.04Granted during the year 1 073 482 60.40 1 180 900 61.03Cancelled during the year 509 900 127.39 798 000 128.69Become invalid during the year 260 312 67.82 229 500 110.11Exercised during the year - 0.00 - 0.00Expired during the year 69 000 54.70 - 0.00Outstanding at end of year 2 310 448 63.05 2 076 178 80.55Exercisable options as per 31 December 585 569 71.02 586 653 95.41
The average weighted life of outstanding share options was 4.3 years at 31 December 2024 and 3.6 years at 31 December 2023
The exercise prices and the average life of outstanding share options as per 31 December 2024 were as follows:
Exercise Average remaining life No. of optionsprice NOK1 year 238 750 78.65-81.412 years 30 500 87.39-139.413 years 804 115.704 years 1 236 667 57.14 -61.035 years 150 000 61.927 years 653 727 59.57-69.36Total 2 310 448
Calculation method for market value of employee share options:
The market value of share options is calculated using the Black-Scholes method. Volatility is determined based on the historical
share price development over the lifetime of the options, assuming that historical volatility indicates future volatility, which may not
always be the case. Strike prices are set at the listed price plus 10% at the time of allocation. The risk-free interest rate is based on
Norwegian government bond rates. Each option program is calculated separately, considering the actual exercise price and duration
of the program. The exercise date for the options is estimated based on historical company experience and varies between senior
management and other employees. The interest advantage is considered insignificant and has not been included in the accounts.
The table below shows the values used in the model.
*
*20232024Dividends (NOK) 0.00 0.00Expected volatility (%) 47.16 47.85Historical volatility (%) 47.16 47.85Risk-free interest (%) 3.65 3.33Expected life of options (years) 3.21 3.25
*
Weighted average parameters at grant of instrument
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7. REMUNERATION OF MANAGEMENT AND BOARD OF DIRECTORS
Pay Directors’ Salaries Bonuses Benefits Pension (Amounts in NOK 1 000)currencyfees paidpaidaccruedin kindcost TotalSenior management 2024President and CEO USD 7 359 3 232 285 631 11 507Chief Financial Officer NOK 2 841 820 16 409 4 086VP and General Manager North America USD 4 612 2 271 285 433 7 601VP and General Manager Europe EUR 3 615 1 351 - - 4 966Chief Medical Officer SEK 2 977 983 - 293 4 253VP Global Human Resources EUR 2 140 708 - 146 2 994Total senior management 23 544 9 364 586 1 912 35 406Consultant Board of Directors 2024feeChairperson of the Board NOK 751 751 Members of the Board NOK 1 080 269 1 349 Total remuneration 1 831 23 813 9 364 586 1 912 37 506
In 2024, the Group utilized the professional services of one of its Directors for consulting work beyond regular board duties.
The consultancy fees were based on a contract approved by the board.
Pay Directors’ Salaries Bonuses Benefits Pension (Amounts in NOK 1 000)currencyfees paidpaidaccruedin kindcost TotalSenior management 2023President and CEO USD 6 953 2 792 1 004 602 11 351 Chief Financial Officer NOK 2 776 924 16 383 4 099 VP and General Manager North America USD 4 387 1 375 601 382 6 745 VP and General Manager Europe EUR 3 431 1 008 488 - 4 928 VP Global Strategic Marketing & BD to June NOK 1 035 - 1 052 117 2 203 Chief Medical Officer SEK 2 555 867 96 379 3 898 VP Global Human Resources to April USD 1 572 - 100 35 1 707 VP Global Human Resources from April EUR 1 474 323 - 101 1 898 Total senior management 24 183 7 288 3 358 1 998 36 827 Consultant Board of Directors 2023feeChairperson of the Board NOK 620 620 Members of the Board NOK 1 440 529 1 969 Total remuneration 2 060 24 711 7 288 3 358 1 998 39 415
In 2023, the Group utilized the professional services of one of its Directors for consulting work beyond regular board duties.
The consultancy fees were based on a contract approved by the board.
Currency rates development 2024 20232024 vs 2023:Average currency rate NOK/USD 10.74 10.57 Average currency rate NOK/EUR 11.63 11.43 Average currency rate NOK/SEK 1.02 1.00
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Annual Report Photocure – Results 2024
Share options senior management
Senior managers’ holdings of shares in Photocure ASA are detailed in the note concerning share capital. The allocation and exercise
of share options, as well as the holdings of share options for senior managers, are presented in the following overview:
Holding of Weighted Share Expired Share share options Average options share options at 31 December Strike Share options for senior management 2024awardedoptionscancelled2024PricePresident & CEO 125 000 - - 457 500 62.96Chief Financial Officer 65 000 - - 278 750 62.85VP and General Manager North America 50 000 45 000 - 221 250 63.57VP and General Manager Europe - - 203 750 - 0.00VP Global Human Resources 40 000 - - 66 750 61.98Chief Medical Officer 50 000 - - 164 000 60.11Total 330 000 45 000 203 750 1 188 250
Holding of Weighted Share Expired Share share options Average options share options at 31 December Strike Share options for senior management 2023awardedoptionscancelled2023PricePresident & CEO 272 500 - 265 000 332 500 64.24Chief Financial Officer 178 750 - 157 500 213 750 63.84VP and General Manager North America 136 250 - 132 500 216 250 63.09VP and General Manager Europe 136 250 - 132 500 203 750 67.40VP Global Human Resources from April 28 750 - 22 500 26 750 65.58Chief Medical Officer 114 000 - 88 000 114 000 60.34Total 866 500 - 798 000 1 107 000
Auditing fees(Amounts in NOK 1 000 ex VAT) Group and parent2024 2023Statutory auditing 1 816 1 086Other attestation services 250 172Other services excluding auditing 15 27Tax advice 47 36Total 2 128 1 320
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8. PENSION COSTS
Photocure ASA has an agreement with a life assurance company for contribution-based pensions for its employees in Norway. The
contribution plan complies with revised national pension regulations. Contributions are 6% of the employee’s ordinary salary up to
7.1 times the basic amount (G) of the Norwegian National Insurance scheme, and 16% for salaries between 7.1 and 12 times G. The
national insurance covers pensions for salaries up to 7.1 G. Pension contributions are paid into the employee’s contribution account
with the life assurance company. As of December 31, 2024, and December 31, 2023, the company had no deposits in the premium
and contribution fund.
Photocure ASA employees in other European countries have individual defined contribution pension plans according to local
regulations and their employment agreements.
Photocure Inc matches its employees’ contributions to the 401(k) plan dollar for dollar up to 4% of salary for employees who elect to
join the plan. There is a salary maximum set by the IRS, which was $345,000 in 2024.
Employees in Photocure GmbH in Germany who came from Ipsen have defined benefit pension plans through the TUPE regulations
in Germany. Photocure GmbH has a re-assurance agreement with an assurance company in Germany to balance the pension liability.
New employees in Photocure GmbH are offered a defined contribution plan.
Salaries for senior management employees in Photocure ASA above 12 times G are subject to agreements concerning operational
coverage of pensions for salaries above this level in the form of contribution-based pensions. The calculated contribution is 16% of
the employee’s salary above 12 times G. Photocure Inc has established additional unfunded pension coverage for senior managers,
accruing annually an amount equal to 4% of salary and earned bonus.
The pension cost for the year is calculated as follows:(Amounts in NOK 1 000) Group Parent2024 2023 2024 2023Total pension costs, contribution scheme in life assurance 11 922 12 940 5 081 5 660Total pension costs, company scheme 1 139 1 036 293 328Total 13 061 13 976 5 374 5 988
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Annual Report Photocure – Results 2024
9. FINANCIAL INCOME AND EXPENSE
(Amounts in NOK 1 000) Group Parent2024 2023 2024 2023Interest income 12 868 11 714 11 739 11 124Foreign exchange gains 12 059 12 841 55 420 22 806Total financial income 24 927 24 554 67 159 33 930Interest costs long term liabilities and lease 742 903 307 540Interest costs earnout 27 292 25 424 27 292 25 424Foreign exchange losses 8 864 14 850 11 230 14 849Other financial expense 39 - 16 -9Total financial expense 36 937 41 177 38 846 40 804Remeasure financial balances - 1 444 - 5 828Net financial income and expenses -12 010 -18 067 28 313 -12 703
The foreign exchange gain in the parent company for 2024 includes an unrealized exchange gain on the long-term loan to the
subsidiary, which is denominated in USD. The exchange rate for NOK/USD increased to 11.3 as of December 31, 2024, compared
to 10.4 at the end of the previous year. This resulted in an unrealized gain of NOK 43.3 million in 2024, compared to a gain of NOK
9.9 million in 2023. In the consolidated accounts, the unrealized gain/loss is eliminated against the change in equity as part of other
comprehensive income.
Remeasure financial balances
Information regarding the remeasured value of the earnout liability is provided in Note 22.
A loss allowance on the parent company’s loan to the US subsidiary was recognized in 2023 according to IFRS as a probability-
weighted estimate of future loan repayments. In 2024, there was no increase. The total allowance as of December 31, 2024, is NOK
39.4 million, based on a probability-weighted scenario that the loan will not be repaid in full. Nonetheless, the parent company is
committed to securing operations in the US.
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10. RELATED PARTIES - COMPANIES
Photocure has established a wholly owned subsidiary in the US, Photocure Inc, to manage the sales, marketing, and distribution
activities for the Cysview product. Photocure ASA retains ownership of the patent rights and trademark and is responsible for the
development and manufacturing of the product within the Group. Photocure Inc purchases the finished product from the parent
company and distributes it in the United States. Photocure Inc has its own marketing organization, funded by a loan from the parent
company in addition to its own revenues. Transactions between Photocure ASA and Photocure Inc are conducted on arm’s length
terms, and the loan is interest-free until further notice.
Photocure established wholly owned subsidiaries in Germany and France. Photocure ASA handles the sales and distribution of
Hexvix in Europe, while the marketing and promotion activities for Hexvix in Continental Europe are managed by Photocure GmbH
and Photocure SAS. A markup is applied to fully loaded local costs for the services rendered to the parent company.
In January 2022, Photocure established a sales subsidiary in Canada to manage the sales, marketing, and distribution of Cysview in
Canada. Photocure ASA holds the pharmaceutical market authorization for the sale of Cysview in the US and Canada.
Transactions and intercompany balances: (Amounts in NOK 1 000) 2024 2023Sales of products 12 562 12 710Sales of services - 504Intercompany sales 12 562 13 214Purchase of marketing and promotion services -67 331 -67 70131-Dec-24 31-Dec-23Accounts receivables and other storm-term receivables 19 696 6 473Long term loan given 393 841 380 368Accounts payables and other short-term liabilities -56 865 -17 039Total subsidiaries 356 671 369 802Guarantees to bank in favor of subsidiary for requested security 2 804 2 804
These bank guarantuees are provided for licenses pertaining to the sale of Cysview in the states of Maryland, Mississippi, Nevada, and California, as well as the
office lease deposit.
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Annual Report Photocure – Results 2024
11. TAX
(Amounts in NOK 1 000) Parent & Group2024 2023Income tax expenseTax payable 1 323 3 117 Changes in deferred tax 10 406 5 644 Total income tax expense 11 729 8 761 Tax base calculation parentProfit(-loss) before income tax 35 294 2 088 *Permanent differences ) 12 008 22 947 Change in temporary differences -56 312 -17 691 (Utilized)/Increased tax loss carried forward 9 010 -7 344 Tax base - -
Temporary differencesReceivables -565 -565 Inventories 4 207 5 522 Non current assets 30 097 29 893 Long term currency loans 175 824 126 176 Earnout liability -19 422 -19 422 Change in earnout true up -692 -11 243 Provisions -143 -236 Pensions -1 994 -1 701 Gains and loss account 10 310 12 887 Total 197 622 141 311 Tax loss carried forward -375 211 -366 202 Net temporary differences -177 589 -224 891 Deferred tax liability (asset) -39 070 -49 476
Parent & GroupReconciliation of effective tax rate 2024 2023Profit(-loss) before income tax Group 8 390 9 740 Expected income taxes at statutory tax rate 1 846 2 143 Effect tax rates foreign entities 3 981 1 144 Permanent differences 3 737 6 241 Prior year adjustment 2 165 -767 Income tax expense 11 729 8 761 **)Effective tax rate in % 139.8 % 89.9 %
Temporary differences are recognized for the Parent company only and the note disclosure for the Group is of this reason identic to
the disclosure for the Parent company. The tax payable is however due to the subsidiaries in Europe that received a residual share of
profit in Germany and France in 2023 and a minimum mark up of the costs incurred in 2024.
*
) Permanent differences consist of non-deductible costs and non-taxable income and deduction.
**
) Tax expense related to profit before tax.
55
The parent company reported a taxable loss of NOK 9 million in 2024, compared to a profit of NOK 7.3 million in 2023. The deferred tax
asset, along with changes in temporary differences, decreased to NOK 39.1 million as of December 31, 2024, from NOK 49.5 million as of
December 31, 2023. The recognition of a tax asset in Norway is based on predicted future profits according to the business plan for all
major markets and the reversal of temporary differences in the coming years. Therefore, the remaining deferred
tax asset is maintained as of December 31, 2024.
The European business contributed to Photocure’s profitability in 2024 and is expected to continue doing so. The parent company is
the selling entity for the Hexvix product in all European countries, while the marketing and promotion activities in Germany and France
are carried out by the subsidiaries in those countries.
Photocure anticipates that its US operations will become more profitable, contributing to the pre-tax result of the parent company.
This expectation is based on a cash flow model that considers a balanced view of the market share for Cysview in the US compared to
Hexvix sales in Europe. The US sales and marketing force continues to expand its coverage of the US market and gain further market
shares.
Photocure continues to see growth opportunities in European countries, particularly in several large untapped markets. With Photocure’s
dedicated sales force in place in Europe, we believe this will further strengthen sales. Several studies have been published highlighting
and verifying key clinical benefits, including the positive impact of Hexvix/Cysview on reduced disease progression, bladder cancer
detection, and the safety of repeated use of Hexvix/Cysview. The basis for recognizing the tax asset is the assessment that there is
convincing evidence that the deferred tax benefit will be utilized.
There is no expiry on losses to be carried forward in Norway, while in the US, losses expire after 20 years according to tax legislation
valid until the end of 2017. The new US tax legislation, valid for taxable years from 2018, has no expiry for loss carryforwards but imposes
an 80% limit on utilization.
Deferred tax assets have not been recognized for the following items in the US subsidiary due to the lack of a history of pre-tax profit at
this time:
(Amounts in NOK 1 000) 2024 2023Unrecognised deferred tax assets Amount Tax effect Amount Tax effectNet deductible temporary differences -10 695 -2 315 -8 690 -2 444 Tax losses 177 523 53 013 185 681 52 194 Net unrecognised deferred tax asset US 166 828 50 699 176 990 49 751
Tax losses for which no deferred tax asset was recognized, expire as follows:
(Amounts in NOK 1 000) 2024 2023Amount Expiry date Amount Expiry dateExpire Federal 23 169 2030 - 2037 22 718 2030 - 2037 Expire State 16 219 2030 - 2043 15 929 2030 - 2043 Never expire 11 270 11 103 Total 50 658 49 751
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Annual Report Photocure – Results 2024
12. EARNINGS PER SHARE
Earnings per share are calculated based on the profit/loss for the year after tax, excluding other comprehensive items. The result is
divided by the weighted average number of outstanding shares over the year, adjusted for the acquisition of treasury shares. Diluted
earnings per share are calculated by adjusting the average number of outstanding shares by the number of employee share options
that can be exercised. Antidilution effects are not considered.
2024 2023Figures indicate the number of sharesOrdinary shares 1 January 27 120 820 27 120 820Effect of treasury shares -15 122 -15 122Effect of share options exercisedWeighted average number of shares, 31 December 27 105 698 27 105 698Effect of outstanding share options 169 27 797Weighted average number of diluted shares, 31 December 27 105 867 27 133 495Net profit/loss(-) -3 339 979(Amounts in NOK 1 000)Earnings per share 2024 2023Earnings per share in NOK basic -0.12 0.04Earnings per share in NOK diluted -0.12 0.04
13. GOODWILL AND CUSTOMER RELATIONS
(Amounts in NOK 1 000)
Hexvix sales, marketing, and distribution rights in Europe and other markets previously controlled by Ipsen Pharma SAS (Ipsen) were
acquired by Photocure on October 1, 2020. Under the final agreement, Photocure paid Ipsen EUR 15 million upon transfer on October
1, 2020. Additionally, Ipsen receives a deferred consideration of 15% of sales (years 1-7 post-transfer) and 7.5% of sales (years 8-10) in
the former major Ipsen markets.
One intangible asset has been identified: customer relationships. These relationships pertain to existing customers in Europe who
were previously served by Ipsen. Customer relationships have been valued using a multiperiod excess earnings method, with a
value of NOK 166.7 million at the transaction date. Photocure has estimated this asset to have a useful life of 10 years from the
transaction date, and the intangible asset is depreciated on a straight-line basis over this period. The net book value of the customer
relationships as of December 31, 2024, is NOK 95.9 million.
Goodwill amounts to NOK 144 million and is not depreciated but is tested for impairment as of the end of December 2024. The
impairment analysis confirms the goodwill value, given the performance in 2024 and future growth opportunities that are expected
to align with forecasts prepared in connection with the transaction.
57
Group and parent Customer relations Goodwill(Amounts in NOK 1 000)Accumulated cost at 31 December 2021 166 720 144 000Additions - -Accumulated cost at 31 December 2022 166 720 144 000Additions - -Accumulated cost at 31 December 2023 166 720 144 000Additions - -Accumulated cost at 31 December 2024 166 720 144 000Accumulated depreciation at 31 December 2021 20 840 -Amortization and impairment 16 672 -Accumulated depreciation at 31 December 2022 37 512 -Amortization and impairment 16 672 -Accumulated depreciation at 31 December 2023 54 184 -Amortization and impairment 16 672 -Accumulated depreciation at 31 December 2024 70 856 -Book value at 31 December 2021 145 880 144 000Book value at 31 December 2022 129 209 144 000Book value at 31 December 2023 112 536 144 000Book value at 31 December 2024 95 865 144 000
The carrying amount of goodwill is allocated to the acquired business in Europe at NOK 144 million. The recoverable amount has
been determined based on its value in use.
The impairment test is based on cash flow projections for the business related to the investment, using the most recent financial
forecast. The main assumptions are:
• Sales growth and related expenses are based on current penetration and future growth potential as assessed by management.
This assessment considers experiences from high-growth markets as well as more mature markets within the company portfolio.
• With minor exceptions, sales are in Euro. The assumed exchange rate in the forecast projection for NOK/EUR is 11.7, compared to an
exchange rate of 11.6 used for the 2024 testing.
• The impairment test is based on a 10-year cash flow projection, excluding the terminal year. A 10-year period is applied as it
reflects changes in hospital practices driven by the product and the low churn experienced in other markets.
• The applied discount rate for the testing is 22.0% post-tax, equal to the discount rate in the 2024 testing.
• The applied tax rate is 22%.
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Annual Report Photocure – Results 2024
14. PROPERTY, PLANT, EQUIPMENT AND LEASE ASSETS
(Amounts in NOK 1 000)Intangible Right- Machinery and Groupassetsof-useEquipmentMedical Registry Software Office & manu-intangibleSystemsLeasefacture Office TotalAccumulated cost at 31 December 2021 - 4 933 31 062 776 9 348 46 119Additions 1 133 3 498 78 3 532 8 241Disposals and lease expiry - -83 -1 797 -1 880Accumulated cost at 31 December 2022 - 6 066 34 477 854 11 083 52 480Additions 8 250 1 505 2 582 260 2 371 14 968Disposals and lease expiry -8 324 -8 324Accumulated cost at 31 December 2023 8 250 7 571 28 735 1 114 13 454 59 124Additions 9 240 1 286 5 083 3 034 18 643Disposals and lease expiry -354 -354Accumulated cost at 31 December 2024 17 490 8 857 33 818 1 114 16 134 77 413Accumulated depreciation at 31 December 2021 - 3 778 2 371 442 5 954 12 545Amortization and depreciation 615 5 779 161 1 151 7 706Disposals and lease expiry - 236 -486 -250Accumulated depreciation at 31 December 2022 - 4 393 8 386 603 6 619 20 001Amortization and depreciation 849 1 178 6 729 145 2 113 11 014Disposals and lease expiry -5 420 -5 420Accumulated depreciation at 31 December 2023 849 5 571 9 695 748 8 732 25 595Amortization and depreciation 3 091 1 204 5932 104 1 794 12 125Disposals and lease expiry 252 11 1918 1 340 3 521Accumulated depreciation at 31 December 2024 4 192 6 786 17 545 852 11 866 41 241Book value at 31 December 2022 - 1 673 26 091 251 4 464 32 479Book value at 31 December 2023 7 401 2 000 19 040 366 4 722 33 529Book value at 31 December 2024 13 298 2 071 16 273 262 4 268 36 173PPE are depreciated on a straight-line basis over the estimated useful life of the asset as followsContract 4 years 3 - 5 years3 - 5 years 3 - 5 yearsperiod
The registry intangible, with a net book value of NOK 13.3 million, is recorded in the Photocure Inc accounts. The right-of-use assets
include a net book value of NOK 7.3 million in Photocure Inc and NOK 2.3 million in Photocure GmbH. Machinery and equipment have
a net book value of NOK 2.5 million in Photocure Inc and NOK 0.5 million in Photocure GmbH. The remaining assets belong to the
parent company.
59
Right-of-use assets (Lease) 31-Dec-23 31-Dec-24(Amounts in NOK 1 000)New/Discount Contract increase Contract ratevalue Expirycontracts RemeasurevalueRight-of-use office contract Norway 3.15% 14 340 - 14 340 Right-of-use office contract US 3.70% 11 524 1 298 12 822 Right-of-use office contract Germany 1.40% (0) 1 936 1 936 Right-of-use office company car fleet Germany 1.40% 2 872 348 1 500 4 720 Total lease assets 28 735 33 818
The right-of-use assets comprise office lease contracts covered by IFRS 16, including lease contracts for the company car fleet in
Germany. The calculation of the lease asset excludes utility services shared by the tenants.
The parent company has a 6-year rental agreement for office premises at Hoffsveien 4 in Oslo, starting September 1, 2021, and
ending August 31, 2027. The agreement gives Photocure an option to extend the rental period by 4 years. The rent amounts to
NOK 2.9 million for the period from January 1, 2025, to December 31, 2025. The rent for the remaining period until the expiry of the
agreement amounts to NOK 7.6 million.
Photocure Inc rented office premises at Carnegie Center, Princeton, New Jersey, from April 1, 2011, through December 10, 2022. On
December 13, 2021, Photocure Inc signed a lease amendment to move to a new office of 5,212 square feet in Carnegie Center and to
extend the lease term by six years, with an expiration date of December 31, 2028. The lease commitment is NOK 11.2 million (USD 1.1
million) at a 3.7% discount rate. The rent commitment for the period from January 1, 2025, to December 31, 2025, is NOK 2.2 million,
while the rent for the remaining period until the expiry of the agreement amounts to NOK 8.9 million.
Photocure GmbH entered into a new office lease agreement in Düsseldorf from January 1, 2024, ending December 31, 2026. The
lease commitment is NOK 1.9 million, and the rent commitment for the period from January 1, 2025, to December 31, 2025, is NOK 0.8
million. The standard lease period for the car fleet in Germany is 36 months. As of December 31, 2024, Photocure GmbH had 10 lease
agreements with an average remaining lease term of 22.3 months.
15. SUBSIDIARIES
(Amounts in NOK 1,000)Company Country Ownership Book value31-Dec-24 31-Dec-23 31-Dec-24 31-Dec-23Photocure Inc. USA 100% 100% 22 596 19 567 Photocure GmbH Germany 100% 100% 3 388 2 647 Photocure SAS France 100% 100% 641 482 Photocure Canada Inc. Canada 100% 100% - Total subsidiaries 26 626 22 696
16. INVENTORIES
(Amounts in NOK 1 000) Group Parent31-Dec-24 31-Dec-23 31-Dec-24 31-Dec-23Raw materials 2 022 2 254 2 022 2 254Resale products 6 81 6 81Semi-finished and finished goods 37 508 34 855 34 466 32 077Total inventories 39 536 37 190 36 494 34 411
The raw materials inventory consists of active substances for pharmaceutical products. Raw materials are valued at cost. Finished
and semi-finished goods are valued at full manufacturing cost. Consumption is accounted for in accordance with the FIFO principle.
Obsolete goods are written down to net realizable value. Provisions and write-downs of inventories are included in the cost of goods
sold in the income statement.
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Annual Report Photocure – Results 2024
17. FINANCIAL RISK
The note describes the Company’s various financial risks and their management. Additionally, it includes numerical presentations of
risks associated with financial risks.
(I) Organization of financial risk management
Photocure operates internationally and is exposed to various financial risks, including currency risk, interest rate risk, commodity
price risk, liquidity risk, and credit risk. Responsibility for managing these financial risks lies with the company’s management,
encompassing financing, interest rate and currency management, as well as risks within business areas and those associated with
the company’s business processes. Financial risk is also monitored by the Board of Directors.
Centralized risk management
Photocure has a centralized finance department that ensures the company’s financial flexibility for both long-term and short-term
actions. This department monitors and manages financial risk in collaboration with the individual business units within the company.
The finance department maintains communication with the company’s banking partners and executes hedging transactions related
to interest and currency when necessary. Required authorizations for borrowing and entering into derivative agreements are granted
by the Board of Directors. Any transactions involving financial instruments are supported by an underlying commercial hedging
requirement.
Commercial operations – production, sales and marketing
Photocure manufactures, markets, and sells its products through its own sales organization in Europe and North America, as well as
through license partners in other countries. Revenues from license partners consist of two elements: sales of products to license
partners and milestone revenues. Photocure manufactures its products through renowned contract manufacturers in Italy, Spain, the
Netherlands, and Austria. The prices of raw materials are a risk factor. Photocure’s commercial operations in North America expose
the company to currency risk against USD/CAD, as both revenues and expenses are in USD/CAD. The same applies to commercial
operations in Europe, which are mostly in Euros. Currency risks are partly naturally hedged by purchasing goods and services in EUR
and USD.
(II) Classes of financial risk
Interest rate risk
Photocure has an interest-bearing earnout liability from 2020, with an original interest rate equal to the internal rate of return for the
investment project, which has since been adjusted according to changes in interest rate levels. Additionally, Photocure has interest-
bearing leasing and pension liabilities. The long-term bank loan, which was settled in 2023, had a floating interest rate, and 90% of
the loan was state-guaranteed.
The company’s risk related to interest income is mainly associated with its holdings of cash and cash equivalents. The main strategy
is to diversify the risk by investing in money market funds and bond funds with low risk, high liquidity, and short duration. More than
90% of the investments are denominated in NOK and are not hedged.
Liquidity and funding risk
The Company monitors its cash flows from both long-term and short-term perspectives through planning and reporting. Photocure
does not have any loan agreements that involve covenants or other restrictions. Photocure uses a multi-currency consolidated bank
account system that provides flexibility in drawing on multiple currencies. The company may require new capital in the future, and
adequate sources of capital funding may not be available when needed or may not be available on favorable terms.
A main objective of Photocure’s financial policy is to ensure that the company has the financial freedom to act both short-term
and long-term to achieve strategic and operational goals. Photocure’s policy is to have sufficient funds to cover known capital
requirements for the forthcoming 12 months, in addition to maintaining a strategic reserve. Photocure follows a low-risk investment
strategy for its liquid funds. The return on these liquid funds depends on the interest rates in the money markets and will therefore
vary over time.
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The following table presents an overview of the maturity structure of the Group’s financial obligations, based on non-discounted
contractual payments:
Remaining period(Amounts in NOK 1 000) Less than 1 month 1–3 months 3–12 months 1–5 years Total31-Dec-24Accounts payable 18 767 676 19 443Withholding tax and social securities 2 594 2 594Other current liabilities 30 272 18 920 26 487 75 678Loan and lease liabilities 11 173 33 519 104 599 149 29131-Dec-23Accounts payable 16 710 2 950 19 660Withholding tax and social securities 1 230 1 230Other current liabilities 22 640 14 150 19 857 56 647Loan and lease liabilities 3 250 9 500 134 510 147 260
Credit risk
Management of credit risk associated with accounts receivable and other operational receivables is handled as part of the
commercial risk and is continuously monitored as part of normal operations. Photocure is primarily exposed to credit risk associated
with accounts receivable and other short-term receivables. Photocure’s sales consist of a mix of direct sales to hospitals, pharmacies,
and wholesalers in Europe and North America. The credit risk is limited as the customers are hospitals that are either publicly owned
or financed by public funds or insurance companies. The same applies to wholesaler customers. Photocure’s credit risk is considered
moderate, and the company does not use credit insurance.
Currency risk
As NOK is the Company’s presentation currency, Photocure is exposed to translation risk associated with its foreign net exposure.
Photocure’s revenues and costs are incurred in different currencies, primarily EUR and USD, exposing the company to exchange rate
fluctuations. The company regularly monitors the need for hedging large transactions. Bank accounts in foreign currencies are actively
used to reduce exposure to all main currencies, and currency risk is somewhat naturally hedged in EUR and USD, by having both
revenues and costs in the same currency. However, in both 2024 and 2023, Photocure had a cash surplus in EUR and a cash deficit in
USD. The Company did not enter into any currency hedging contracts during 2024.
The following table shows the Company’s sensitivity to potential changes in the NOK exchange rate, assuming all other factors remain
constant. The calculation is based on the same change relative to all relevant currencies. The effect on the income statement arises
from changes in the value of monetary items.
(Amounts in NOK 1 000) Change in the NOK exchange rate Effect on operating profit/loss2024 +/- 10 % +/-12.4512023 +/- 10 % +/-15.3742022 +/- 10 % +/-2.270
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Annual Report Photocure – Results 2024
18. FAIR VALUE
The table below provides an overview of financial assets recognized in the balance sheet at fair value according to the valuation
method. The different levels are defined as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques using observable inputs other than quoted prices included in Level 1, either directly (i.e., as prices)
or indirectly (i.e., derived from prices of equivalent items).
Level 3: Valuation techniques using inputs that are not based on observable market data.
(Amounts in NOK 1 000)Market value hierarchy Level 1 Level 2 Level 3 TotalMoney market funds 200 511 200 511 Earnout liability, ref note 22 (117 126) (117 126)Total 200 511 - (117 126) 83 386
19. RECEIVABLES
The company’s maximum credit risk associated with financial instruments corresponds to gross receivables. In a hypothetical
situation where no receivables are actually paid, this would correspond to:
(Amounts in NOK 1 000) Group Parent31-Dec-24 31-Dec-23 31-Dec-24 31-Dec-23Accounts receivable 66 856 59 704 36 486 37 129Accounts receivable intercompany - - 19 696 6 473Total 66 856 59 704 56 182 43 602Prepaid expenses 18 367 11 352 11 297 7 720Other receivables and deposits 5 370 4 681 469 548Total other receivables 23 737 16 033 11 767 8 268
Loan to the subsidiary is disclosed in Note 10.
Not yet 0–30 30–60 60–90 Over 90 Age breakdown of group accounts receivableTotalduedaysdaysdaysdays31 December 2024 42 760 15 115 3 923 4 722 335 66 85631 December 2023 40 324 12 703 4 197 2 066 415 59 704
Photocure’s sales are primarily to hospitals, pharmacies, and wholesalers in Europe and North America.
Photocure has implemented the expected loss model under IFRS 9 for trade receivables. The expected loss as of December 31, 2024,
amounts to NOK 0.9 million. Realized bad debt losses in 2023 and 2024 have been immaterial. Credit risk and foreign exchange risk
related to trade accounts receivable are discussed in more detail in Note 17.
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20. CASH AND SHORT TERM DEPOSITS
(Amounts in NOK 1 000) Group Parent31-Dec-24 31-Dec-23 31-Dec-24 31-Dec-23Cash and cash equivalents, restricted 5 018 3 168 5 018 3 168Cash and cash equivalents, non-restricted 88 323 63 675 53 871 42 423Money market funds, non-restricted 200 511 192 661 200 511 192 661Total 293 852 259 504 259 400 238 252
Money market funds are considered cash equivalents because they are readily convertible to known amounts of cash and are held
for the purpose of meeting short-term cash commitments.
Restricted cash and cash equivalents as of December 31, 2024, include NOK 1.4 million for employees’ withholding tax security,
with the remaining amount referring to a deposit for office rent.
21. SHARE CAPITAL
Amounts that are distributed to or contributed by shareholders are included directly in the equity. The Group’s equity is increased in
direct relation to the cost of share-based remuneration for employees.
1. The nominal value of treasury shares is presented in the balance sheet as a negative equity element. The net purchase price is
entered as a reduction of other paid-in equity. Profits or losses on transactions in treasury shares are not included in the income
statement.
2. Transaction charges in connection with equity transactions are included directly in equity after deduction for tax. Only transaction
charges that are directly attributable to the equity transaction are included directly in equity.
Registered share capital in Photocure ASA amounted to:
Nominal value Share capital No. of sharesper share NOKin NOKShare capital at 31 December 2023 27 120 820 0.50 13 560 410Share capital at 31 December 2024 27 120 820 0.50 13 560 410Treasury shares: Holdings of treasury shares at 31 December 2022 15 122 7 561Holdings of treasury shares at 31 December 2023 15 122 7 561Buy-back of treasury shares - 0.50 -Share options exercised from treasury shares - 0.50 -Holdings of treasury shares at 31 December 2024 15 122 7 561
All shares have equal rights. Ordinary shares are classified as equity. Expenses that are directly attributable to the issue of ordinary
shares are included as a reduction of equity.
At the General Meeting 23 May 2024, the Board of Directors of Photocure ASA was granted authorization to purchase treasury shares
to 2.7 million shares.
All authorizations are valid up until the Ordinary General Meeting in 2025. Previously issued authorizations have expired.
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Annual Report Photocure – Results 2024
The table below indicates the status of authorizations at 31 December 2024:
Purchase, treasury shares(Figures indicate the number of shares)Authorization issued at the General Meeting on 23 May 2024 2 712 082Purchase of treasury shares after 23 May 2024 -Remaining under authorizations at 31 December 2024 2 712 082
2 310 448 share options have been allocated to employees 31 December 2024 (see note 6).
Ownership structure
The major shareholders in Photocure as of 31 December 2024 were:
Shares ShareholdingMorgan Stanley & Co. LLC 4 592 380 16.9 %Skandinaviska Enskilda Banken AB 2 000 000 7.4 %Skandinaviska Enskilda Banken AB 955 575 3.5 %Skandinaviska Enskilda Banken AB 851 100 3.1 %Skandinaviska Enskilda Banken AB 843 778 3.1 %J.P. Morgan SE 727 330 2.7 %MP Pensjon PK 688 418 2.5 %The Bank of New York Mellon SA/NV 684 051 2.5 %Nordnet Bank AB 660 431 2.4 %JPMorgan Chase Bank, N.A., London 450 189 1.7 %Nordnet Livsforsikring AS 401 112 1.5 %Danske Bank A/S 336 924 1.2 %Verdipapirfondet KLP Aksjenorge IN 277 839 1.0 %BNP Paribas 259 000 1.0 %Avanza Bank AB 232 083 0.9 %J.P. Morgan SE 230 000 0.8 %Svenska Handelsbanken' AB 213 226 0.8 %Verdipapirfondet Storebrand Indeks 207 155 0.8 %Billington, Erik 204 853 0.8 %Verdipapirfondet KLP Aksjenorge 195 630 0.7 %Total of 20 largest shareholders 15 011 074 55.3 %Treasury shares 15 122 0.1 %Total other shareholders 12 094 624 44.6 %Total number of shares 27 120 820 100.0 %
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Shares owned, directly or indirectly, by members of the Board of Directors, the President and CEO and senior management and their
closely related associates as of 31 December 2024: No. of No. of share **Name PositionsharesoptionsDaniel Schneider President & CEO 99 689 457 500 Erik Dahl Chief Financial Officer 32 750 278 750 Anders Neijber Chief Medical Officer - 164 000 Anja Gossens-von der Heidt Head of Global Human Resources - 66 750 Geoffrey Coy VP and General Manager North America 15 207 221 250 Dylan Hallerberg Chairperson of the board 150 000 15 277 Ghizlane Tagmouti Board member 25 000 5 124 Neal Shore Board member - 9 097
**
See note 6 for additional information about the share options.
22. LOAN TERMS AND REPAYMENT
NominalLoanInstal- 1st year interest Year ofamountmentsBook valueinstal- (Amounts in NOK 1 000) Currencyratematurity01.01paid31-Dec-24mentsDeferred consideration (Earnout) NOK/EUR 2030 136 084 -37 135 126 761 9 636 Right-of-use office contract Norway NOK 3.15% 2027 9 764 -2 556 7 208 2 631Right-of-use office contract US USD 3.70% 2028 8 231 -1 733 7 327 1 795Right-of-use office contract Germany EUR 1.40% 2026 - -588 933 645*Right-of-use company car fleet Germany EUR 1.40% 2025 1 592 -1 062 1 340 1 077Total non-current liabilities 155 671 143 569 15 784
*
There are seperate lease agreements for each lease subject
Hexvix sales, marketing, and distribution rights in Europe and other markets previously controlled by Ipsen Pharma SAS (Ipsen) were
acquired by Photocure on October 1, 2020. Under the final agreement, Photocure paid Ipsen EUR 15 million upon transfer on October
1, 2020. Additionally, Ipsen receives a deferred consideration of 15% of sales (years 1-7 post-transfer) and 7.5% of sales (years 8-10)
in the former Ipsen major markets. The deferred consideration is paid as quarterly earnout payments in EUR after the close of each
quarter.
The fair value of the deferred consideration is driven by future expected sales and is remeasured on a yearly basis. There was
no remeasurement as of December 31, 2024. The remeasurement for 2023 resulted in an increase in fair value of NOK 1.4 million.
Photocure has discounted the estimated earnout payments by an IRR aligned with the investment project, adjusted for changes
in borrowing interest levels. This IRR is deemed appropriate as a discount rate for the earnout payments since the level of the
payments will be subject to the same risk factors as the cash flow prognosis for the acquisition as a whole. Future sales, given
performance in 2024 and growth opportunities going forward, are expected to align with forecasts prepared in connection with the
transaction.
Photocure has remeasured the earnout liability in NOK and based the forecasted cash flow on a fixed exchange rate of EUR/NOK 11.7,
compared to an exchange rate of 11.6 in the prior year’s remeasurement.
The agreement with Ipsen established a floor revenue for the earnout from 2022 to the end of the forecast period, with no upper
cap on revenue. The total undiscounted amount of the earnout may range from NOK 150 million to NOK 250 million, depending on
revenue and the development of the exchange rate between EUR and NOK. According to our sensitivity analysis, the corresponding
net present value of the liability may decrease or increase by NOK 29 million.
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Annual Report Photocure – Results 2024
Group
Office Office Lease Office and Earnout Financial Lease Princeton, car Lease liabilityloan bankOsloUSGermany TotalAccumulated 31 December 2022 142 709 12 500 11 433 9 592 6 013 174 871Proceeds from loans and borrowing 1 023 1 023Loan repayment and earnout instalments -8 940 -12 500 -21 440Payment of lease liabilities -2 427 -1 360 -2 794 -6 581Total changes from financing -8 940 -12 500 -2 427 -1 360 -1 771 -26 998Remeasurerd liability 2 472 758 -1 631 2 832Terminated lease liability -3 282 -3 282New lease liability -Interest expense 25 424 209 332 273 99 26 336Interest paid -25 581 -209 -332 -273 -99 -26 493Total liability related changes 2 315 - 758 -1 -2 651 -607Accumulated 31 December 2023 136 084 - 9 764 8 231 1 591 147 2661th year instalments -8 404 - -2 889 -1 745 -980 -14 017Accumulated 31 December 2023 136 084 - 9 764 8 231 1 591 147 266Proceeds from loans and borrowing 2 284 2 284Loan repayment and earnout instalments -10 554 -11 266Payment of lease liabilities -2 556 -1 733 -1 650 -5 939Total changes from financing -10 554 - -2 556 -1 733 634 -14 921Remeasurerd liability 537 829 48 877Terminated lease liability -Interest expense 27 292 - 308 278 157 28 035Interest paid -26 580 - -308 -278 -157 -27 323Total liability related changes 1 249 - - 829 48 1 589Accumulated 31 December 2024 126 779 - 7 208 7 327 2 273 133 9351th year instalments -9 636 - -2 631 -1 795 -1 722 -15 784
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23. ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES
(Amounts in NOK 1 000) Group Parent31-Dec-24 31-Dec-23 31-Dec-24 31-Dec-23Accounts payable 19 443 19 660 15 299 13 324Accounts payable intercompany - - 50 463 1 220Total 19 443 19 660 65 762 14 544Accrued bonus, holiday pay, salaries 44 184 35 378 21 665 18 817Short-term payable, intercompany - - 6 402 25 863Miscellaneous other accrued costs 21 861 12 863 8 035 6 481Total other current liabilities 66 045 48 241 36 102 51 161
The incurred earnout liability is for net sales in the last quarter. Accrued bonus, holiday pay, and salaries include accruals for the
estimated annual bonus as of December 31, 2024. The final annual bonus for the Group will be decided by the Board of Directors.
24. SUBSEQUENT EVENTS
After the reporting period ended, the Company repurchased 300,000 shares at an average price of NOK 60.41 per share, totaling
NOK 18.1 million. The purpose of the repurchase program is to fulfill obligations arising in accordance with Photocure’s long term
incentive programs and the Company’s guidelines for remuneration as approved by Photocure’s annual general meeting held on
23 May 2024, or otherwise as decided in accordance with the authorization.
There are no other subsequent events after December 31, 2024, that had any material impact on the Financial Statements.
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KPMG AS
Sørkedalsveien 6
P.O. Box 7000 Majorstuen
N
-0306 Oslo
Telephone +47 45 40 40 63
Internet www.kpmg.no
Enterprise 935 174
627 MVA
To the General Meeting of Photocure ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Photocure ASA, which comprise:
• the financial statements of the parent company Photocure ASA (the Company), which
comprise the statement of financial position as at 31 December 2024, the statement of profit
or loss and comprehensive income, statement of changes in equity and statement of cash
flows for the year then ended, and notes to the financial statements, including material
accounting policy information, and
• the consolidated financial statements of Photocure ASA and its subsidiaries (the Group),
which comprise the statement of financial position as at 31 December 2024, the statement of
profit or loss and comprehensive income, statement of changes in equity and statement of
cash flows for the year then ended, and notes to the financial statements, including material
accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at
31 December 2024, and its financial performance and its cash flows for the year then ended in
accordance with IFRS Accounting Standards as adopted by the EU, and
• the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2024, and its financial performance and its cash flows for the year
then ended in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by relevant laws and regulations in Norway and the International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
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To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of Photocure ASA for 16 years from the election by the general meeting of
the shareholders on 29 April 2009 for the accounting year 2009.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
1. Deferred tax asset
Reference is made to Note 11 Tax in the financial statements
The Key Audit Matter
How the matter was addressed in our audit
The Group has recognized a deferred tax asset
of NOK 39.1 million in the Company and
Group's financial statements as of 31 December
2024.
The recognized deferred tax asset relates to
deductible temporary differences and unused
tax losses in the Company in Norway.
Management has assessed that there is
convincing evidence that it is probable that
taxable profits will be available in the future,
against which unused tax losses in Norway can
be utilized.
Due to the application of the transfer pricing
method for the business in the US, future
taxable profits in Norway are not only dependent
on the development for Hexvix® in Europe, but
also the market development for Cysview ® in
the US.
We have determined this to be a key audit
matter, due to the inherent uncertainty in
forecasting the amount of future taxable profits.
Our audit procedures included, among others:
• Evaluating the appropriateness of
key assumptions in the estimated
future taxable profit analysis
prepared by management, including
revenue and cash flow growth, the
impact of the expiry of patents and
the reversal of significant temporary
differences
• Comparing financial performance
with the original forecasts, to
evaluate the reliability of
management’s prognoses related to
future taxable profit
• Evaluating management’s sensitivity
analysis to assess the impact of
reasonable changes in key
assumptions including future sales
for Hexvix®/Cysview ®
• Evaluating the adequacy of the
disclosures in the financial
statements.
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2. Loan to subsidiary
Reference is made Note 10 Related Parties – Companies in the financial statements
The Key Audit Matter
Photocure ASAs subsidiary, Photocure Inc, was
established in order to carry out the marketing-,
selling- and distribution activities for the Cysview
® product in the US. Photocure ASA has a long-
term loan to Photocure Inc. that is recognized at
NOK 391.8 million in the Company's financial
statement as of 31 December 2024.
We have determined risk of impairment of the
loan to be a key audit matter, due to the inherent
risk related to future cash flow estimates and the
Group's ability to successfully commercialize the
individual product concerned.
among others:
• Challenging management and applying
our own knowledge of the business and
the industry to identify any indicators of
impairment of the loan
• Assessing the impairment
documentation prepared by
management
• Evaluating the appropriateness of key
assumptions in the impairment
documentation, including revenue and
cash flow growth, the impact of the
expiry of patents and agree these with
the relevant key assumptions used in
determining the expected credit loss
• Comparing historical cash flow
development in mature markets in
Europe with expected future cash flows
in the US market
• Evaluating management’s sensitivity
analysis to assess the impact of
reasonable changes in key assumptions
like future sales in the US for Cysview ®
• Evaluating the adequacy of the financial
statement disclosures in the Company's
financial statement
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information accompanying the financial statements. The
other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
the information in the Board of Directors’ report nor the other information accompanying the financial
statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information accompanying the financial statements. The purpose is to
consider if there is material inconsistency between the Board of Directors’ report and the other
information accompanying the financial statements and the financial statements or our knowledge
obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appears to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report or the other information
accompanying the financial statements. We have nothing to report in this regard.
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Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our opinion on the Board of Directors' report applies correspondingly to the statement on Corporate
Governance.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with IFRS Accounting Standards as adopted by the EU, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company's and the
Group's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company and the Group to cease to
continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves a true and fair view.
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• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Photocure ASA, we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name 5967007LIEEXZXG8OW35-2024-12-31-en, have been prepared, in
all material respects, in compliance with the requirements of the Commission Delegated Regulation
(EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant
to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial
statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all
material respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
regulation. This responsibility comprises an adequate process and such internal control as
management determines is necessary.
Auditor’s Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all
material respects, the financial statements included in the annual report have been prepared in
compliance with ESEF. We conduct our work in compliance with the International Standard for
Assurance Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of
historical financial information”. The standard requires us to plan and perform procedures to obtain
reasonable assurance about whether the financial statements included in the annual report have been
prepared in compliance with the ESEF Regulation.
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As part of our work, we have performed procedures to obtain an understanding of the Company’s
processes for preparing the financial statements in compliance with the ESEF Regulation. We
examine whether the financial statements are presented in XHTML-format. We evaluate the
completeness and accuracy of the iXBRL tagging of the consolidated financial statements and assess
management’s use of judgement. Our procedures include reconciliation of the iXBRL tagged data with
the audited financial statements in human-readable format. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Oslo, 11 April 2025
KPMG AS
Gunnar Sotnakk
State Authorised Public Accountant
(This document is signed electronically)
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Annual Report Photocure – Results 2024
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På vegne av: KPMG AS
Serienummer: no_bankid:9578-5993-4-2025853
IP: 80.232.xxx.xxx
2025-04-11 09:51:34 UTC
Penneo Dokumentnøkkel: VUPZM-Y6R5V-HRTBC-PXAK4-8A74A-7GAQQ
75
76
Annual Report Photocure – Results 2024
Alternative
Performance
Measures
(Information provided based on Guidelines on Alternative
Performance Measures (APMs) for listed issuers by The
European Securities and Markets Authority - ESMA)
Photocure reports certain performance measures
that are not defined under IFRS, but which
serve as additional metrics used by the Board
and management for assessing performance
and for reporting both internally and to
shareholders. The presentation of these
non-IFRS performance measures provides
readers with additional information to
understand the financial and operating
performance of the Company when viewed
alongside the IFRS financial information.
Photocure uses the following alternative
performance measures:
EBITDA & EBIT
Photocure considers EBITDA to be a useful
measure for pre-tax operating cash flow, as
it reflects cash generation before changes in
working capital and capital expenditures. Investors
frequently use EBITDA to evaluate and compare
businesses, as it provides an analysis of operating
results excluding depreciation and amortization.
Depreciation and amortization, which are non-cash
elements, can vary significantly between companies
due to differences in asset value and type.
EBITDA is defined as “Earnings Before Interest, Tax,
Depreciation and Amortization.”
77
The reconciliation to the IFRS accounts is as follows:
All amounts in NOK 1 000
2024
1.1-31.12
2023
1.1-31.12
Gross profit 494 671 474 521
Operating expenses excl depreciation & amortization -445 479 -419 028
EBITDA 49 192 55 492
Depreciation & amortizaation -28 793 -27 687
EBIT 20 399 27 806
Revenue growth in constant currency
Photocure operates internationally, with circa 1% of its revenue in Norwegian
Kroner. Exchange rate fluctuations can significantly affect reported revenue in
Norwegian kroner. To clarify revenue trends, Photocure provides revenue growth
data by region and for the whole company in local currencies.
The average exchange rates used for translating revenues on reporting dates were:
2024
1.1-31.12
2023
1.1-31.12
USD (NOK per 1 USD) 10.74 10.57
EUR (NOK per 1 EUR) 11.63 11.43
Financial Calendar
Follow us at our quarterly financial presentations and annual general meeting.
The dates are subject to change.
The time and location of the
presentations will be announced
in due time.
HTTPS://PHOTOCURE.COM/INVESTORSHUB/INVESTORSEVENTSANDPRESENTATIONS
Annual Report Photocure – Results 2024
78
1st quarter
May 8, 2025
2nd quarter
July 30, 2025
3rd quarter
October 29, 2025
Results:
Annual
General
Meeting:
May 5,
2025
79
ESG Report
2024
Sustainability Statement
80
ESG Report Photocure – 2024
Contents
General information ...................................................................................................................................................................................................... 81
General basis for preparation of sustainability statements .................................................................................... 81
Disclosures in relation to specific circumstances .............................................................................................................. 81
Governance .................................................................................................................................................................................................................. 83
Strategy ............................................................................................................................................................................................................................. 85
Impacts, risks and opportunity management ......................................................................................................................... 88
Environmental information .................................................................................................................................................................................. 90
Statement regarding environment & climate ........................................................................................................................... 90
Supply chain monitoring, packaging & transportation .................................................................................................. 93
Social information ........................................................................................................................................................................................................... 94
Own workforce .......................................................................................................................................................................................................... 94
Consumers and end-users .......................................................................................................................................................................... 99
Governance information ......................................................................................................................................................................................... 104
Business conduct ................................................................................................................................................................................................... 104
Appendix 1: Transparency Act statement 2024 ......................................................................................................................... 106
81
General basis
for preparation
of sustainability
statements
(BP-1)
This is Photocure’s sixth annual
sustainability statement and is
applicable for the period January 1st -
December 31st, 2024. The sustainability
statement has been prepared on a
consolidated basis, which is the same as
for the company’s financial statements.
The sustainability statement covers
Photocure’s upstream and downstream
value chain.
This report is prepared in accordance
with the 2021 GRI Standards and
with reference to Euronext guidelines
for ESG reporting and the European
Sustainability Reporting Standard
(ESRS). The claims and data in this
report have not been audited by a
third party.
For information about this report and
its content, please contact Photocure
ASA and CFO Erik Dahl or Corporate
Communications Director Maja
Bergmann.
Disclosures in relation to
specific circumstances
(BP-2)
Photocure is using the same time horiz-
ons as defined by ESRS 1, section 6.4:
• Short-term refers to the reporting
period as defined in our financial
statements
• Medium-term refers from the end
of the short-term period up to five
years
• Long-term refers to more than five
years
In the sustainability statement, we
do not rely on data estimations from
indirect sources, neither have we
identified any sources of estimation
and/or outcome uncertainty. We have
not identified any reporting errors
(restatement of information) from prior
reporting periods.
As part of its sustainability statement,
Photocure is reporting on information
stemming from other legislation, such
as reporting requirements of the
Norwegian Transparency Act.
General
information
Photocure’s ESG sustainability reporting journey
Photocure adopts
the GRI standard
for its ESG reporting
journey
The company publishes
its first ESG report for
the reporting year 2019
Photocure becomes
signatory of the UN Global
Compact committing to its
ten principles within human
rights, labor, environment
and anti-corruption
Photocure published
integrated Annual Reports /
ESG Reports
Integrated Report
for 2024 with
reference to ESRS
2019
June 2020
April 2021
2020-2023 Reports
April 2025
GRI standard 1st report Integrated report Adopting ESRSUN Global Compact
82
ESG Report Photocure – 2024
83
Governance
(GOV-1 to GOV-5)
The role of the administrative,
management and supervisory
bodies
Board composition, including
independence, gender split,
professional and committee roles can
be found in the Leadership / Board
of Directors section of the company
website.
The Board of Directors is responsible
for the overall management of the
company and shall supervise the
company’s day-to-day management
and the company’s activities in general.
The Annual General Meeting (AGM) is
Photocure’s supreme governing body
at which shareholders can influence
how sustainability is practiced.
Photocure’s Board of Directors bears
the ultimate responsibility for the
company’s sustainability approach
and the sustainability statement is
discussed and approved by the Board.
Photocure has made a strong
commitment to ensure trust in the
company and to enhance shareholder
value through effective decision-
making and improved communication
between the management, the Board
of Directors and the shareholders. The
company’s framework for corporate
governance is intended to decrease
business risk, maximize value and
utilize the company’s resources in an
efficient, sustainable manner, to the
benefit of shareholders, employees and
society at large. The Company will seek
to comply with the Norwegian Code
of Practice for Corporate Governance
(the “Corporate Governance Code”),
last revised on 14 October 2021 and
available at the Norwegian Corporate
Governance Board’s website www.
nues.no, to the extent not considered
unreasonable due to the Company size
and stage of development.
Information provided
to and sustainability
matters addressed by the
administrative, management
and supervisory bodies
The company discloses board and
governance guidelines annually in the
annual report and on photocure.com
(Corporate Governance Policy and
Annual Review).
While the Board is overseeing the
management of the organization’s
impacts on the economy, environment
and people, no specific Board
committees are assigned to this task.
The Board has delegated responsibility
for managing sustainability impacts to
the CEO and operational responsibility
is delegated to Finance, Quality/
Regulatory/Compliance and Corporate
Communications functions. The
process and frequency to report back
to the Board is through the quarterly
ESG goal tracking and the annual
sustainability statement.
Material topics have been reviewed and
approved by the Board of Directors.
Dr. Neal Shore, an assigned member
of the Board, provided guidance to
the internal ESG task force on behalf
of the Board. The achievements and
goals are followed up quarterly with
the leadership team, tracked and
documented with the oversight from
the Global Head of Regulatory, Quality &
Compliance Lise Borgen Carlson.
For more information about Corporate
Governance, Nomination Committee,
Audit Committee and ESG Board
Advisor, please see the Photocure
corporate governance policy in the
2024 annual report on pages 24-30.
Integration of sustainability-
related performance in
incentive schemes
The remuneration policy is published
on the Photocure website in the Our
Impact / ESG report section. In addition,
the Nomination Committee report,
also available on the company website
(Investors – Events & Presentations
section), provides details on the
Nomination Committee mandate,
membership and remuneration.
Photocure has not integrated
sustainability-related performance in
incentive schemes.
Statement on due diligence
For information about the main steps
of due diligence, please refer to
the Transparency Act Statement in
appendix 1 or on Photocure’s website.
Risk management and internal
controls
For information about risk management
and internal controls, please refer to the
risk section of the Board of Directors’
report (p. 8).
84
ESG Report Photocure – 2024
We Care...
about everything we do and
everyone we engage with.
We are respectful and
inclusive, and we operate
with the highest level
of integrity.
Take Ownership
Be accountable for your actions
Drive for results
Act Professionally
Make an impact
Be Agile
Adapt to changes
Demonstrate flexibility
Be responsive
Be quick
Be Passionate
Care about the people we serve
Inspire your colleagues
Be enthusiastic about what we do
Be spirited in our interactions
Be Courageous
Exhibit determination
Have integrity in all interactions
Challenge the status quo
Be open in our communications
Be Curious
Have a learning mindset
Think innovatively
Be resourceful
Be inquisitive
Work Together
Be inclusive and respectful
Work collaboratively
Have fun doing what you do
Build trust
Photocure’s core values set important
standards for the company, both
internally and externally. Our values
guide what we believe and how we will
succeed. These standards ensure that
we always act in a responsible way.
They exist under the principle that We
Care - about everything we do and
everyone we engage with.
We are respectful and inclusive, and
we operate with the highest level of
integrity. Our values guide the behavior
of employees and form the basis for
Photocure’s ethical guidelines:
Take Ownership: Take initiative
and responsibility
Be Passionate: Care deeply
about what we do
Be Courageous: Take action
in the face of obstacles
Be Agile: Move quickly,
act decisively
Be Curious: Have the desire
and interest to learn new things,
grow and develop
Work Together: Think
individually, act as One Team
to achieve more
Photocure’s Core Values
85
Strategy
(SBM-1 to SBM-3)
Strategy, business model
and value chain
Photocure was founded by the
Norwegian Radium Hospital to develop
and commercialize a promising
photodynamic non-melanoma skin
cancer product with a vision to become
a global leader in photodynamic
technology. Photocure has since
transformed from a technology-based
focus and being a global leader in
photodynamic therapy to a valued
player in the bladder cancer area. Based
on its experience, solid foundation and
the growth of its breakthrough bladder
cancer product, the company has a
stepwise approach to further developing
its products and services for the benefit
of patients, urology care providers and
the health care community.
Photocure has a strong track record
of developing and commercializing
pharmaceutical products based on
photodynamic technology. Photocure
has since evolved into a therapeutic
area-focused commercial stage
pharmaceutical company with a focus
on bladder cancer. The company is
exploring expansion opportunities
within uro-oncology.
Today, the company’s vision is driving
change in bladder cancer and its
mission is to deliver transformative
solutions to improve the lives of bladder
cancer patients. There have been no
significant changes to the sectors in
which Photocure is active, the company’s
value chain or other relevant business
relationships compared to the previous
reporting period. Photocure is member
of NHO (The Confederation of Norwegian
Enterprise) and the Oslo Cancer Cluster.
Photocure value chain oversight
PhotocureSuppliers
Customers
Product Quality Oversight
Supply Chain Oversight
Intellectual Property
Risk Management
Active substance
manufacture
Semifinished product
manufacture
Finished Product
manufacture
Transport | Storage |
Distribution to
Hospitals,
Wholesalers,
Pharmacies
purchase the
product
Marketing Authorization Holder
Product Quality & Safety
Surveillance
Sales & Marketing
Customer Support & Training
Ensures Access to
the product & BLC
procedure
Supports further
Research & Clinical
Trials in Bladder Cancer
End users
Bladder Cancer
Patients get
staged | diagnosed |
follow up
procedures
Urology
Healthcare
Professionals
conduct the
BLC procedure
with the
Product
Medical Equipment for Blue Light Cystoscopy
is provided by 3rd Party Medical Device companies,
depending on Market Authorizations
Value chain oversight
86
ESG Report Photocure – 2024
Interests and views of
stakeholders
The identification of priority stake-
holders for the company was done
by an interdisciplinary working group
consisting of Photocure employees
representing medical affairs, finance,
operations, HR, communications, IT,
compliance, and quality management.
The model on the next page illustrates
our key stakeholder groups.
We continuously engage with stake-
holders regarding sustainability issues
and priorities. Since 2020, we have
carried out systematic stakeholder
dialogue on this topic regularly (at least
annually), to make sure that we report
on relevant topics, and we communicate
on our progress through the annual
sustainability reports.
When conducting stakeholder dialogue,
we make sure to talk to as many relevant
stakeholders as possible, including
representatives among Photocure’s
investors, employees, customers and
suppliers. The last systematic stakeholder
dialogue was carried out at the end of
2023 / beginning of 2024 and consisted
of short semi-structured interviews,
in addition to a review of relevant
documentation, such as the annual
employee survey, sustainability ratings
and industry level ESG topics / reports.
In the stakeholder interviews /
document reviews, we seek information
about the stakeholder’s own sustain-
ability priorities, guidelines and
procedures (in order to learn from
them, and to make sure that we
are collaborating with responsible
partners), as well as industry specific
topics, stakeholders’ impression of
Photocure’s performance and where /
how they think we can improve.
87
Employees
Photocure’s employees are directly
affected by the company’s internal
policies and activities, and directly
affect the company through their
performance and actions.
Customers/Patients
Photocure’s customers consist of
urologists, hospitals, clinics and the
bladder cancer patients they treat.
Customers are directly affected by
the quality and safety of Photocure
products. Customers directly affect
the company economically and
customer expectations also impact
Photocure’s sustainability priorities.
Suppliers
Photocure’s suppliers are economically
affected by the company and their
responsibility is indirectly affected
by Photocure’s focus on responsible
practices and the expectations placed
on them by the company. Suppliers
directly affect the company through
the quality and pricing of their products
and services.
Investors / Shareholders
Photocure’s investors and owners
are primary stakeholders and directly
affect the company’s priorities and
strategic direction. Photocure’s
economic and business performance
may affect the priorities of investors
and shareholders.
Government authorities
Government and regulatory
authorities affect the company’s
operating conditions directly and
indirectly.
Civil society
Civil society affect the company’s
operating conditions directly and
indirectly. Local communities are
indirectly socially, environmentally
and economically affected by
Photocure’s activities in terms of
job creation, contribution to local
value creation and environmental
impact.
Photocure’s stakeholders
Photocure
Employees
Customers/
Patients
Suppliers
Investors/
Shareholders
Government
Authorities
Civil Society
88
ESG Report Photocure – 2024
Material impacts, risks
and opportunities
This report covers sustainability topics
that are of importance to Photocure
and the company’s stakeholders.
Since 2020, Photocure has conducted
materiality assessments in line with the
principles of the GRI Standards. This
means that the company has reported
on topics on which we have an actual or
potential positive or negative impact.
In 2024, Photocure conducted a double
materiality assessment (DMA), in line
with ESRS 1, section 3. In addition
to assessing impacts, we have also
evaluated risks and opportunities for
the company.
The outcome of the 2024 DMA has
not significantly changed the list of
sustainability topics but it has led us
to rename some of the topics that we
were already reporting on, to match the
sustainability matters covered in topical
ESRS (ESRS 1, AR 16). The order in which
we report on material sustainability
topics has also changed, following
the guidelines in ESRS 1, Section 8.
The sustainability statement is now
structured in four main parts: General
information, Environmental, Social and
Governance, with our material topics
listed in the table below:
Impacts, risks
and opportunity
management
(IRO-1 & IRO-2)
A detailed description of the process
to identify and assess material impacts,
risks and opportunities will be included
in the 2025 sustainability statement.
Photocure is currently in the process of
defining relevant ESRS disclosures and
will adjust reporting according to these
for future sustainability statements.
Topical ESRS Topic Sub-topic
Section in the
sustainability
statement
ESRS S1 Own workforce – Working environment
– Employee engagement
– Policies & workplace key figures
– Headcount turnover
– Employees by region
– Gender equality and diversity
– Compensation equity
– S1 Goals and targets for 2025
Social
ESRS S4
Consumers and
end-users
– Product quality and safety
– Ethical marketing and disclosure
– Supply chain responsibility
– Research activities & supporting
the scientific community
– Clinical trials
– Real world data & patient registries
– Data protection & IT security
– S4 Goals and targets for 2025
Social
ESRS G1 Business conduct – Business ethics & transparency
– Compliance program
– Reporting and monitoring
– G1 Goals and targets for 2025
Governance
89
90
ESG Report Photocure – 2024
Statement regarding
environment & climate
In Photocure, we focus all our efforts
and resources to improve the lives
of bladder cancer patients, and
we recognize that we do have an
economic, social, and environmental
impact on our surroundings. In the
2024 double materiality assessment
(DMA) we concluded that E1 Climate
change was not considered material
to Photocure. While Photocure
recognizes the critical importance of
addressing environmental and climate
change issues, these concerns are not
classified as material topics within the
framework of ESRS. This assessment
is primarily due to Photocure’s limited
direct environmental impact, as the
manufacturing of our healthcare
product is outsourced to external
suppliers. Consequently, our control
over production-related environmental
factors is indirect and limited.
Nonetheless, we continue to report
on emissions related to our office
locations and IT operations, as well as
environmental considerations related to
our product itself.
Within Photocure’s supply chain, we
remain committed to monitoring and
promoting sustainable practices as
well as engaging with our suppliers to
ensure adherence to environmental
standards. In addition, we continue
to monitor environmental topics of
real estate providers for Photocure
locations and include them in any
new real estate searches. We also
continue our stakeholder dialogue to
assess evolving environmental and
climate reporting needs. Nevertheless,
our focus remains on social and
governance related areas where we
can exert the most influence, ensuring
the efficacy and integrity of our
sustainability efforts.
As a participant of the United Nations
Global Compact and committed
to upholding the Ten Principles,
Photocure supports a precautionary
approach to environmental challenges;
the company shall undertake
initiatives to promote greater
environmental responsibility; and
encourage the development and
diffusion of environmentally friendly
technologies. This commitment is also
part of the Photocure Supplier Code
of Conduct as well as Photocure’s own
Environmental Policy, implemented in
2023.
Scope 1 & 2 emissions
Photocure’s business locations
contribute to environmental and
climate impact directly through energy
use in our offices (see table below),
waste generated at our offices, and
employee business travel. In addition,
the manufacture, transport and use
of pharmaceutical products and their
disposal can lead to impacts on the
environment.
Environmental
information
Photocure
Location kWh electricity kWh district heating Total Kg CO
2
e
2022 2023 2024 2022 2023 2024 2022 2023 2024
Headquarter
(Oslo)
68 818 68 571 60 241 57 284 57 206 38 304 1 410 2 161 2 140
Europe
(Düsseldorf)
1
11 087
*
5 371
***
NA 26 077
**
25 024
****
NA 13 530 3 046 NA
*****
North America
(Princeton)
2
37 958 63 076 56 534 - - - 8 460 14 066 12 530
1
Düsseldorf office: data reported as stated or from latest available 12-month period:
*
May 2021-May 2022,
**
Jan-Dec2022
***
21.12.2022-4.1.2024
****
Dec 2022-Nov 2023.
Electricity 100% from Renewable energy sources (Information: Vattenfall).
*****
2024 consumption not available from the rented shared office space at the date of publication.
2
North America office: Photocure share of energy use (electricity + heating).
91
Office locations & emissions
Global Headquarters
Photocure’s headquarter is located
in an office building in Oslo,
Norway, that is certified by the
BREEAM Code for a sustainable
built environment. The certificate
is renewed annually, and the
building obtained “very good” in the
asset performance and building
management categories.
In addition, a best-in-class approach
(100%) to waste was highlighted in
the April 2022 BREEAM assessment.
New waste sorting containers in 7
categories have been deployed in
November 2024 in Photocure’s office.
The professional property company
managing the building publishes
their sustainability strategy and
ethical guidelines annually, focusing
in priority on energy savings in
their buildings, increasing the
source sorting rate of waste and on
environmental certification of the
buildings. They are ISO 9001 and
14001 certified and a member of
Grønn Byggallianse.
North America
In December 2022 Photocure’s
North America operations moved to
a different office within the same
building complex, the Carnegie
Center, prioritizing open plan
and meeting spaces to better
accommodate the evolving and
flexible office usages. This office
building complex in Princeton, USA,
has been “Energy Star” certified
from 2017 to 2024 and has seen
a number of energy and water
conservation upgrades in 2023. In
addition, Carnegie Center has been
awarded Gold Tier Certification for
Conservation and Sustainability
by the Wildlife Habitat Council
(WHC) for 2024. Carnegie Center
is currently the only multi-tenant
office facility in the Northeastern
US to achieve Gold Tier
Certification.
In response to growing focus on
occupant health during the Covid-19
pandemic, the “Fitwel Viral Response
Module” was created in order to set
the global standard for safeguarding
occupant health and wellness,
offering the premier evidence-
based, third- party certification
to mitigate viral transmission in
buildings. Carnegie Center also has
an extensive recycling program,
diverting over 50% of waste from the
landfill. Recycled items include paper,
glass, cardboard, plastic, electronics,
lightbulbs, pallets, plant material,
asphalt, concrete and food waste.
The commercial real estate
company is included in the GRESB:
The Global Real Estate Sustainability
Benchmark, the worldwide portfolio-
level standard for environmental,
social and governance (ESG)
benchmarking for real estate
Corporate Level Disclosure. The
real estate company also earned
the BOMA 360 label for operational
best practices of its building
management.
Europe
In January 2024, Photocure GmbH
moved to a new office location in
central Düsseldorf, better matching
office surface and people present
in the office versus the colleagues
traveling or working from home.
Shared office management and
meeting facilities provide economies
of scale. In addition, the central
location is easy to reach, making
public transport the evident and
environmentally friendly choice for
our employees based in Düsseldorf.
The group will continue to broaden
its focus on monitoring ESG criteria
regarding its existing and future
locations.
92
ESG Report Photocure – 2024
Scope 3 emissions
Carbon footprint linked to
third-party IT hardware &
services
Photocure contracts its IT services,
hardware, servers and data centers
from a third party corresponding to
approximately 75% of its activity in that
domain: Microsoft 365 for all Photocure
users, Microsoft Azure, servers including
website servers, PCs managed for
approximately 50% of Photocure
employees. This third- party vendor
uses the cradle-to-gate method for the
calculation of product lifetime emissions,
in accordance with the GHG protocol.
The cradle-to-gate method calculates
the total CO
2
e of each asset in the year
of acquisition. All mobile devices (mobile
phones and tablets) used by employees
for professional purposes are included
for the first time in 2024, also using the
cradle-to-gate method.
The following graph & table provide
information about the company’s share
of emissions resulting from that vendor
& activity:
2022 2023 2024
*
Total scope 3 CO
2
e emissions 4.89 t 1.84 t 8.23 t
CO
2
e emissions per employee
7 7.42 kg 28.41 kg 130.79 kg
Photocure data provided by third party
* The inclusion of mobile devices in 2024 represents the major share of the emission (6.73 t).
93
Supply chain
monitoring, packaging
& transportation
As a business with outsourced
manufacturing and logistics, Photocure
relies on suppliers, individuals or
organizations who provide goods and
services to the company (see p. 99
“Supply chain responsibility”). Beyond
resource consumption at its office
locations, Photocure acknowledges
that an impact on the environment
and climate is found in the company’s
indirect impact through suppliers and
raw materials.
Photocure aims to minimize the carbon
footprint caused by transportation,
by utilizing as much of the pallet
and vehicle capacities as possible.
In addition, when selecting primary
containers and secondary packaging
of our product, Photocure takes into
consideration the environmental impact
of the different options available.
In 2021-2024, all Photocure’s critical
suppliers within the supply chain
were screened for environmental
criteria, such as the existence of an
Environmental Policy and the location
of their operations in high water-stress
areas (see next page). All 11 suppliers
are in either a low or low- medium water
risk area. None are located in a high-
water stress area.
Environmental risk related
to Photocure’s medicinal
product
Pharmaceuticals can be considered as
a class of environmental contaminants
when they are responsible for
bioaccumulation and toxic effects in
aquatic and terrestrial ecosystems. The
active ingredient in Photocure’s Hexvix/
Cysview product, Hexaminolevulinate
hydrochloride (HAL), is instilled in the
patient’s bladder and after about one
hour the bladder is emptied, so that
the urologist can look for bladder
tumors, highlighted by the product’s
fluorescence. The risk for residuals of
HAL in nature has been evaluated.
HAL has very limited stability in
biological tissues and fluids and is
readily biodegradable. The products
of hydrolysis are two substances; one
which is a natural compound found
in all living cells, and it will readily
be biodegraded or metabolized in a
natural environment and the second
one is a fatty alcohol, which is derived
from natural fats and oils, and it can be
found in fruits, animal, vegetable, and
marine sources.
The Hexvix/Cysview product is non-
reactive under normal conditions
of use, storage and transport and
chemically stable under normal
conditions. The product is not
considered toxic or harmful to aquatic
organisms nor to cause long-term
adverse effects in the environment. The
product contains no REACH substances
as per the EU regulations
*
.
In conclusion:
Environmental risk: Use of HAL
has been considered to result in
insignificant environmental risk.
Degradation: The predicted
environmental concentration of
HAL is so low that it did not reach
the prespecified action limit for
further risk investigations at time of
approval (2010).
Bioaccumulation: HAL has low
potential for bioaccumulation
Within Environment & climate
impact, the following achievements
can be reported for 2024:
Environmental Risk Assessment of
the Hexvix/Cysview product’s active
ingredient reviewed against current
guidelines and concluded valid.
Revised Code of Conduct shared
with all critical suppliers
Building / Real estate provider
monitoring of environmentally
friendly upgrades.
Critical supplier screening; manufacturing and supply chain 2022 2023 2024
Total number of critical suppliers in Photocure’s manufacturing
and supply chain
11 11 11
Critical suppliers with Environmental policy available on website
or shared otherwise with Photocure
9 (82%) 10
**
(91%) 11 (100%)
Critical suppliers located in high-water stress area 0 (0%) 0 (0%) 0 (0%)
Suppliers screened for Environmental criteria – Source: Aqueduct Water Risk Atlas
* REACH is a European Regulation and is an acronym for the Registration, Evaluation, Authorization and Restriction of Chemicals
** The only exception is an IT-service provider.
94
ESG Report Photocure – 2024
Own workforce
(S1)
Working environment
We continue to work on different
projects and measures supporting our
ambition ‘To create a great place – for
great people – being able to do great
work’. It is based on this desire that we
build our working environment. The
ability to attract, engage and retain a
skilled workforce as well as maintaining
a safe and healthy working environment
are key interests of both the company
and its stakeholders.
The company follows all regulations
related to Employee Health &
Safety (e.g. the Norwegian “Working
Environment Act). Whether working in
an office environment or remotely as
part of our sales team, the company and
its employees are mainly exposed to
risk related to the working environment,
such as the mental well-being of
employees and physical risks related to
an office setting, e.g. ergonomics and
sedentary work and risk associated with
business travel.
In the reporting period, the company
was not involved with any negative
impacts in the working environment,
through its activities or business
relationships. Our policy commitment
regarding a safe and healthy working
environment is further outlined in the
company Code of Conduct and our
values statements, which are available
on the Photocure.com website.
Photocure directly impacts the working
environment through its strong “We
Care” culture, policies and agreements,
and by keeping an active and regular
dialogue with colleagues across the
globe both in virtual and in-person
meetings. As our culture is built on trust,
Photocure offers hybrid remote work
arrangements across its locations in
Norway, Germany and the U.S. for its
non-customer facing employees, which
represents approximately 40% of its
global team. If possible, employees aim
to work from their offices on an average
of two to three days per week and
engage in regular in-person meetings,
as needed. Colleagues express
satisfaction with the choice of locations
and office environment, which is seen
as very beneficial for the overall well-
being and spirit of the team.
Social
information
To create a great place
– for great people – being
able to do great work.
95
Support and guidance
you get from your manager
to succeed
Participation
Rate
89%
96%
Do you feel proud to work
for Photocure?
91%
Photocure 2024 Global Employee Survey
Employee engagement
All Photocure employees have the
opportunity to actively engage and
participate in creating a positive work
environment where all can thrive.
This year again we asked employees
to provide their insights and opinions
through our Annual Pulse survey. With a
very strong 96% participation rate, the
results indicated a workforce that is to a
very large extent “Proud to Work for the
Company” scoring in the 90th percentile.
Our survey process includes a
transparent sharing of the overall
results and then going back into the
organization to gain clarification and
testing assumptions from the scores
and comments. These feedback
sessions are organized throughout
all of our countries and regions,
subsequently using employee input
to drive improvements and using their
perspective to implement new ideas.
Another avenue where employees have a
direct say in shaping our culture is through
participation in the Care and Respect
Council which was established in 2021 as
a result of feedback from our Annual Pulse
survey. 2024 was a reorganizing year for
the council but the goal and its charter
remain the same – which is to foster
ideas and actions that create an inclusive
work environment. In addition, the
council will continue to bring awareness
around intercultural and interpersonal
communication, maintaining a healthy
and sustainable work life balance and
identifying and address emerging issues
that may impact our diverse culture.
There were no cases of discrimination
reported in 2024. All employees are
being trained in Photocure’s Code of
Conduct and would be aware how to
raise an issue if there was any concern.
Policies & workplace key
figures
Photocure strives to ensure a good
working environment for all employees
and aims to be a workplace with
equal opportunities in all areas. The
company’s policy is to ensure and
provide equal employment rights
and opportunities for all persons
employed by, or seeking employment
with Photocure without regard to race,
age, color, religion, sexual orientation,
citizenship, gender, marital status,
pregnancy, national origin, disability,
or other non-work-related criteria as
may be protected by local or country
law. This extends to the employment
relationship and all other areas of
personnel activity, such as recruitment,
selection, job assignment, supervision,
training, promotions, performance
evaluations, transfers, terminations,
compensation, benefits, educational
opportunities, recreational activities,
and work facilities.
Photocure recognizes its obligation to
actively promote such opportunities
for all qualified people and will take
reasonable and necessary action to
ensure that these objectives are met.
The company has implemented
separate processes for talent
acquisition, compensation, training
and development, performance
management and communications.
These processes ensure a non-
discriminating, secure working
environment, follow local labor law
regulations and are compliant with
the Norwegian Working Environment
Act, the European Directive 89/381-
OSH and the U.S. employment law and
standards, as well as aligning to industry
best practices. The company does not
have employee representatives on the
Board due to the size of the company.
The number of employees covered
by collective bargaining agreements
in 2024 was 0%. Working conditions
are being determined through local
industry benchmark data and employee
feedback through the global annual
employee survey.
At the end of 2024, the organization
comprised of 101 employees, all but
two of whom were full-time employees.
96
ESG Report Photocure – 2024
In addition, Photocure continues to
successfully utilize a strong network of
consultants to support the operations
and development as needed, and the
company’s practice is to outsource
non-core operations and highly
specialized skills and services where it
makes sense. This practice allows the
company to manage its resources in an
effective, and practical way.
The mid-year as well as the year-end
performance appraisal for Photocure
employees and management includes
an assessment of the performance
in relation to the company’s values
in addition to goal achievement.
Participation and execution rate is >95%.
Even if our strong and very valued
company culture is one of our key
assets and supports talent retention,
we make talent retention one of
the focus topics for the company.
Complementary to the close
communication between manager
and employee and to ensure
valuable cooperation and leadership,
Photocure also implemented a
risk of loss assessment process. In
addition, we developed a concept for
developmental assignments to support
individual on the job development. Also,
remuneration comparisons are carried
out on a regular basis to keep in line
with our remuneration guidelines.
In the reporting period, Photocure had
no employee or contractor fatalities
to report. The Company had a low
incidence of accidents and absences
due to illness in the countries where
this is actively tracked. There was no
on-the-job accident reported globally
that resulted in an absence from work.
Absences due to illness in the reporting
countries was 3.3% of total hours for
Germany .and 0.5% for Norway and
included no long-term illness during the
year. In the U.S. sick leave is not tracked
due to the company’s paid time-off
policy (PTO). There were no on-the-job
accidents reported in 2024 in the U.S.
During 2024 no one in the company
took parental leave.
Photocure has not been in any legal
proceedings regarding working
environment in 2024.
Headcount turnover
Turnover at Photocure is monitored
on a rolling 12-month basis. Turnover
in a company is very natural and that
the “right” amount of change in the
organization is healthy to promote a
growing and developing environment.
Longstanding ways and new thoughts
come together in a way that keeps
the organization fresh, combining
consistency with new ideas. We track
and report overall turnover as well
as turnover deemed regrettable. We
further establish goals to help to ensure
that senior leaders and HR business
partners work together to remain highly
conscious of engaging and motivating
colleagues.
Employees by region
An overview of the number of
employees by region is provided in the
table below, all numbers are provided
as headcount at the end of the
reporting period
Gender equality and diversity
In terms of gender equality, one of the
three Photocure’s Board members is
female, as are 33% of the 6-member
Executive Leadership Team (ELT) and
50% (= 10) of the 20-member Global
Leadership Team (GLT) at the end of
2024. Globally, Photocure employs
55.5% men and 44.5% women.
(Corp.)
Functions
Commercial
Operations
Total
Based in North America (USA and Canada) 15 30 45
Based in Europe (HQ Oslo and other countries) 25 31 56
Total 40 61 101
Gender Split Male Female Male Female Male Female
Based in North America (USA and Canada) 9 6 21 9 30 15
Based in Europe (HQ Oslo and other countries) 10 15 16 15 26 30
Total 19 21 37 24 56 45
Total in % 47.50 52.50 60.66 39.34 55.45 44.55
Employees by region
97
Compensation equity
To support growth and fulfil our ambitious
strategy and targets, we need highly
qualified professionals. Thus, reward
and recognition are key parts of our HR
strategy to attract, engage, motivate and
retain great talent at Photocure.
We are proud to actively work on our
compensation philosophy to offer fair,
attractive, equitable pay based on
experience, knowledge, and position
responsibilities. We consider both
internal pay guidelines and external
market competitive financials when
developing our remuneration package,
independent of age, gender, origin,
nationality, or any other. This is further
communicated in our Code of Conduct.
Photocure is a small organization of
101 employees who are based in 11
countries. Due to the size, geographic
diversity, and the fact that 60% of
the roles in the organization are
unique, we are unable to make general
compensation comparisons that
are meaningful. This is specifically
challenging due to the uniqueness of
the roles, confidentiality of the data,
and overall data privacy.
Where we have larger populations of
similar roles, as in our customer-facing
positions, we report that we fare well in
terms of our gender comparisons as it
relates to salaries:
U.S. sales force women earn
100.94% compared to men in that
category
Europe sales force women earn
103.6% compared to men in that
category
Gender split by geography
Male Female
33%67%
Employees
based in
North
America
54%46%
Employees
based in
Europe
2022 2023 2024
Organization Men Women Total Men Women Total Men Women Total
Number of FTE 59 46 105 58 44 102 55 44 99
Part time employees 0 1 0 0 0 0 1 1 2
Temporarily hired 0 0 0 0 0 0 0 0 0
Total of employees 59 47 106 58 44 102 56 45 101
Newly hired
Total number of newly hired
employees in 2022-2024
12 8 20 8 3 11 10 6 16
Employee turnover
Number of employees who
have left the company
4 8 12 8 7 15 12 5 17
Parental leave
Number of employees on
parental leave
1 2 3 2 2 4 0 0 0
Breakdown of employees
Dec-24
Headcount
Dec-24
New Hires
(last 12 month)
Terms last
12 month
Turnover %
last 12 month
Regret. Turnover
(last 12 month)
TOTAL 101 16 17 17.30% 7.10%
Turnover
98
ESG Report Photocure – 2024
2022 2023 2024
Men Women Men Women Men Women
Organization total 59 47 59 43 56 45
Board of Directors 3 2 2 2 2 1
Executive level management 4 3 4 2 4 2
Non-executive level management 10 13 11 11 11 12
Breakdown of employees and board members by gender:
Goals and targets for 2025
Within working environment several
notable achievements can be
reported for 2024:
All colleagues on-boarded have
received the on-boarding training
needed
96% response rate in Pulse Survey
with over 85% indicating satisfaction
with the company
Internal training program continued
on emotional intelligence and other
individual training opportunities.
Focus on global leadership
development (GLT Summit
implemented)
Succession planning for key
functions implemented with
development plans being
established for key talent and
successors
Recognizing exemplary behavior in
line with our values (establishment of
Value Awards)
Maintain engagement to be
measured by low regrettable
turnover, high participation (>80%)
and high overall score in the
employee survey (>75%).
Continue to build a strong
performance driven culture where
all colleagues feel respected and
are motivated to do their best work.
Support talents on their
development being able to meet
the future needs of the organization
driving towards a strong, diverse
pool of successors to key positions
in the organization.
Focus on a holistic employee
experience (along the employee
life cycle)
Encourage and support our
colleagues to have a learning
mindset and to think innovatively by
providing opportunities for training
and development and through
experiential projects.
99
99
Consumers and
end-users
(S4)
Product quality and safety
Photocure’s high quality products
and processes are a prerequisite for
the company’s contribution to value
creation for both owners and society
and for future growth. Providing access
to safe and high-quality healthcare is
at the core of what the company aims
for. A negative management of this area
could impact patients’ wellbeing and
endanger the company reputation. In
the reporting period, the company was
not involved with any negative impacts
in the product quality & safety area,
neither through its activities nor through
business relationships. Photocure’s
product Hexvix
®
/Cysview
®
is available in
over 30 countries, with its established
specialist commercial and medical
teams in North America and Europe.
The quality policy and the quality and
compliance manual are the overarching
documents describing the company’s
quality goals and quality system. The
Quality Management System (QMS)
is a set of written policies, standard
operating procedures, work instructions
and forms managed in a validated
computer system.
Photocure holds a manufacturing license
and a good manufacturing practice
certificate issued by the Norwegian
Medicine Agency which is available on
the EudraGMDP public database.
An annual review of all aspects of
the quality system, product quality
and safety are conducted with the
management team.
All reports of adverse events and/
or product complaints are promptly
investigated and assessed. Adverse
events are reported to applicable health
authorities according to procedures.
All complaints are investigated to
identify if the root cause is linked to the
manufacturing process and if there is a
potential quality issue / defect with the
product. In 2024 there were no quality
and/or safety incidents that led to any
market actions or need for reporting to
health authorities e.g. product recall or
healthcare information letter.
At Photocure we aim to be accessible
to any healthcare provider who
needs information or wants to submit
feedback regarding our product. Our
medical information team replies to any
requests received.
Ethical marketing and
disclosure
Photocure complies with pharma
industry codes in all markets where
we promote our product and interact
with health care professionals and
health care organizations. In Europe,
the company follows the European
Federation of Pharmaceutical Industries
and Association’s (EFPIA) code of
practice, while for the U.S. market,
Photocure follows the Pharma Code.
Written procedures are established
to ensure promotional materials are
reviewed and approved and that
promotional and medical activities are
conducted responsibly and according
to industry standards.
In the reporting period no cases of
promotional material recalls or fines
related to improper promotion of
pharmaceutical products have been
reported in any of the markets where
Photocure operates.
A transparent disclosure regarding
payments and transfers of value
between the medical community
and the pharmaceutical industry is
important to keep a trustworthy and
healthy relationship with patients, health
care professionals, government officials
and the public, and it also strengthens
the company’s commitment to keep a
high ethical business standard.
Therefore, Photocure publishes annual
disclosure reports describing these
payments and transfers on its website
or applicable external websites.
Photocure is equally disclosing its
support for research and open access
to scientific publications.
Supply chain responsibility
As a business with outsourced
manufacturing and logistics, Photocure
relies on suppliers, individuals or
organizations who provide goods and
services to the company. Photocure is
thereby directly and indirectly exposed
to risks and opportunities in its business
relations and supply chain.
Photocure has procedures in place
for the interaction with suppliers,
including qualification and follow up, risk
assessment, auditing and procurement.
As a part of the initial and ongoing
evaluation of suppliers, Photocure
obtains confidence that the supplier is
able to deliver the materials/services
as requested with the required quality,
and that the supplier complies with all
applicable laws relating to ethical and
responsible standards of behavior in
accordance with the United Nations
Global Compact or similar. Photocure
continuously keeps close dialogue with
all its suppliers. Further, the company
performs risk assessments (measures
and analyzes potential risks) in its
supply chain on a regular basis.
Safety feature:
All Photocure products sold in
Europe have a unique identifier
(2D barcode) as a safety
feature. In addition, all product
packs have tamper evidence in
the form of glued cartons.
100
ESG Report Photocure – 2024
Upon engagement of any new suppliers,
Photocure has in place written
procedures, with regards to qualification
and follow up of such suppliers. Upon
engagement of new critical suppliers,
these procedures also include a detailed
questionnaire in order for Photocure to
collect the necessary information for the
company to be able to assess, among
other things, any human rights risks
associated with the new supplier.
All new and revised supplier contracts
include a claim that the supplier shall
materially comply with all applicable
laws relating to ethical and responsible
standards of behavior, including, without
limitation, those dealing with human
rights, labor, environmental protection,
sustainable development and bribery
and corruption in accordance with
the Ten Principles of the UN Global
Compact.
Suppliers’ Business Conduct and
responsible business practice is part
of the agenda on regular business
review meetings with the suppliers. All
suppliers have received our Supplier
and Partner Code of Conduct (“Code”).
In addition, all Photocure’s critical
suppliers (as defined according to
internal procedure and risk matrix)
have been assessed for the presence
of a Code of conduct / corporate
responsibility policy. Photocure has not
terminated or discontinued contracts
with any suppliers due to sustainability
breaches.
Within Supply chain responsibility
several notable achievements can be
reported for 2024:
Environmental, social and
governance topics were followed up
in regular business review meetings.
The status of ESG topics related
policies from all critical suppliers
was assessed.
One critical supplier was encouraged
to improve their ESG policy.
Our Supplier and Partner Code of
Conduct was introduced in 2021 and
updated in 2024. As our suppliers are
seen as an extension of Photocure, we
require our suppliers and partners, to
comply with this Code which is based
on The Ten principles of the UN Global
Compact. Photocure also expects its
suppliers and partners to require their
own suppliers and subcontractors to
follow these principles. In contracts
with business partners and suppliers,
Photocure has included statements
that both parties are obliged to follow all
applicable laws, rules and regulations,
and this general statement also includes
anti-corruption laws. To strengthen the
internal awareness of the importance
of oversight and follow up on suppliers,
a written procedure applicable for all
suppliers’ engagement is in place.
There have been no confirmed
incidents of corruption in the reporting
period, nor has any Photocure
employee been dismissed or
disciplined for corruption. There have
been no cases of terminations or
contracts not being renewed due to
suspected business ethics breaches in
2024, nor has Photocure been involved
in any legal proceedings regarding
business ethics or corruption. More
information on business ethics and
whistleblowing procedures is in the
“Governance” chapter on page 104 / 105.
Research activities &
supporting the scientific
community
Photocure delivers transformative
solutions to improve the lives of
bladder cancer patients. New clinical
research and real world data provide
the scientific community with new
insights to improve bladder cancer
care. In 2024, we have engaged in
15 research projects, underscoring
our commitment and tangible
contribution to the lives of bladder
cancer patients through our support
of the scientific advancement of care
in this domain.
A potential negative impact stemming
from the non-respect of our policies,
best practices and international
requirements for trials and studies,
could be flawed results leading to
uninformed medical decisions. In the
reporting period, Photocure was not
involved with any negative impacts in
Critical supplier screening;
manufacturing and supply chain
2022 2023 2024
Number of critical suppliers 11 11 11
Location of the critical suppliers
Europe and
North-America
Europe and
North-America
Europe and
North-America
Critical suppliers with Code of conduct / corporate responsibility
policy available on website or shared with Photocure
10 (91%) 11 (100%) 11 (100%)
Critical supplier with clear statements for adherence and respecting
human rights available on website or shared with Photocure
10 (91%) 11 (100%) 11 (100%)
*Critical suppliers are defined according to internal procedure and risk matrix.
101
101
its research activities or relationships
with the scientific community.
Photocure is dedicated to improving
bladder cancer care and is conducting
clinical trials and data generation
activities in advancing this mission. In
doing so, Photocure has established
a full set of standard operating
procedures for all research and
development related activities,
including laboratory, pre-clinical
and clinical research, including also
grants and non-sponsored trials. The
procedures outline our commitment
to ensure research activities are
conducted in an ethical manner in
compliance with all applicable laws
and regulations as well as industry best
practice and international codes.
Photocure’s standard operating
procedures about research and clinical
trial management cover various aspects
including responsible management of
trials, commitment to publish trials in
clinical trial registries like clinicaltrials.
gov, patients’ informed consent and
independent ethical committee
approval, sponsor oversight of
outsourced activities risk assessments
before and during the conduct of a
trial, monitoring, vendor and internal
team qualification, and commitment to
publish results, including when results
are negative. Our procedures are
subject to regular review and audits.
Photocure is headquartered in Oslo,
Norway, which requires Institutional
Review Boards in Norway to review
applicable clinical trials to ensure
that they comply with applicable
regulations, meet commonly accepted
ethical standards, follow institutional
policies, and adequately protect
research participants, even when the
trial is conducted in another country.
The Institutional Review Board at each
site will also approve the trial, patient
information and patient consent
procedure as well as ensure protection
of vulnerable patient groups in trials.
In addition, authorities approve the
relevance of clinical trial populations in
relation to the investigated product. The
local ethical committee, the Norwegian
ethical committee, or the authorities
independently have the prerogative to
approve, modify or stop any applicable
trial and to request information on trial
progress and trial results, including
individual safety signals.
Clinical trials
Photocure’s latest clinical trial
(NCT05600322) comparing Hexvix blue
light cystoscopy with standard white
light cystoscopy in the detection of
bladder cancer in a Chinese population
was conducted as part of the process
to obtain marketing authorization
approval in China. The study was
completed and first results published
in October 2023. In November 2024,
the Chinese National Medical Products
Administration granted the marketing
authorization for Hexvix
®
in China.
The study was a collaboration with
Photocure’s partner Asieris. Photocure
did not conduct any sponsored clinical
trials or experimental studies on
animals in 2024.
Real world data & patient
registries
Beyond clinical trials, Photocure has a
commitment to bridge the gap between
randomized clinical trials and real-world
outcomes in bladder cancer care. The
company has established partnerships
with different organizations to help
generate the long-term real-world data
needed in bladder cancer treatment
across diverse and otherwise
underserved sub-groups of patients.
Due to factors including a restricted
patient pool defined by comprehensive
eligibility criteria, controlled trial
settings, as well as set trial durations,
randomized clinical trial outcomes may
102
ESG Report Photocure – 2024
have gaps that need to be addressed
by other means to progress therapy
options. To bridge the knowledge gap
that exists in bladder cancer care,
Photocure has supported and worked
closely with several patient registries to
benefit from such real world data.
One such real world, non-interventional
Photocure sponsored study (Blue Light
Cystoscopy with Cysview® registry in
the U.S.: Clinicaltrials NCT02660645) was
ongoing in the reporting period. The Blue
Light Cystoscopy with Cysview Registry
was established by Photocure in the
U.S. in 2014 and is projected to enroll
4,400 patients. This large, prospective,
longitudinal, multisite registry collects
data on non-muscle-invasive bladder
cancer patients who have undergone
transurethral resection of bladder tumor
using blue Light as an adjunct to white
light cystoscopy. Several other real
world evidence projects also receive
Photocure’s support.
In addition, Photocure has provided
multiple research grants, supported
investigator-initiated trials and research
collaborations. During 2024, a number
of studies were published, or presented
at the major urology conferences,
highlighting and confirming key benefits
of blue light cystoscopy with Hexvix/
Cysview.
Main publications and presentations
can be found in the Annual Report 2024
on pages 12-13.
Moving forward, Photocure expects
that the Precision Medicine / Precision
Diagnostics movement will grow more
important. We anticipate that the
application of precision uro-oncology
will continue to be implemented at
all stages of bladder cancer, starting
with the research stage, with the aim
of customizing cancer treatment. Blue
light cystoscopy with Hexvix/Cysview
will likely be key in identifying certain
types of patients in order to tailor
their cancer treatment. Additionally,
precision diagnosis can reduce
misdiagnosis, delayed diagnosis, under-
treatment and use of unnecessary
treatments. It is also indispensable
in therapeutic monitoring i.e. the
progression of disease and predicting
and assessing responses to treatment.
It can help address cancer inequalities
by providing higher quality care to more
patients.
Data protection & IT security
As a company in the pharmaceutical
sector working with research and
development and cooperating with
physicians and patient advocacy
groups, Photocure and/or its research
partners may need to gather and
store personal data as part of its
research and development practices
or business operations. In addition, as
a listed company on the Oslo Stock
Exchange, information security and
data protection are also an important
part of the company’s obligations to its
shareholders and the marketplace.
Data and information security is a
priority for Photocure and described
in the company’s quality manual. IT
activities and security are evaluated,
and if necessary new risk analyses are
performed. Management is informed
about the result of the evaluations and
approves corrective and preventive
actions. The company has received no
substantiated complaints concerning
breaches of customer privacy in 2024,
nor has it reported any leaks, loss or theft
of customer data in the reporting period.
Photocure has invested in an extensive
security and information security
platform based on international
standards ISAE3402 and ISAE3000.
Furthermore, Photocure’s IT-provider
Intility has a Security Operations
103
Centre (SOC) which is responsible for
managing all suspected and confirmed
cyber security incidents 24/7/365. This
is performed in close collaboration with
other operational departments and
renowned external security partners.
The procedures and processes
that Photocure has established for
personal data protection are based
on the General Data Protection
Regulation (GDPR), EU 2016/679,
including legislation incorporating
these rules in specific jurisdictions,
e.g., Norway and Germany and the
California Consumer Privacy Act
(CCPA). A personal data protection
group has been established, and a
procedure is in place to describe the
responsibility and process for data
protection issues. Photocure has a
dedicated personal data contact
person with delegated responsibility
from the board and management.
To ensure appropriate management
and documentation of electronic files
critical for Photocure’s activities in a GxP
environment, Photocure has a number
of standard operating procedures. For
instance, Photocure has established
processing of personal data, that is
governed by applicable privacy laws and
regulations. In addition, there are several
Photocure procedures that describe
the personal data process for a specific
task. These procedures include work
instructions for relevant roles such as
employees, contractors, job candidates
and Board members.
The privacy laws in the U.S. are being
implemented at a state level effective
from 2023 and continuing through
2026. The California Privacy Rights Act
(CPRA) is modelled after GDPR.
The objective from 2024 to perform
a third-party review of existing data
privacy procedure, including underlying
instructions were performed and
finalized in 2024.
The Data Privacy SOP has become a
global SOP for all employees. The entire
Goals and targets for 2025
Maintain Photocure’s track record
of no quality and/or safety incidents
leading to any market actions
e.g. product recall or healthcare
information letter.
Include following up on environmental,
social and governance topics in
regular business review meetings
Assess the status of ESG topics
related policies from all critical
suppliers
Follow up with critical suppliers on
CSRD data preparations
Follow up with critical suppliers on
CSRD data preparations
Implement a global Photocure
IT-policy to be read and understood
by all employees
Keep Security tickets with priority
“critical” to zero
Security tickets and breaches 2022 2023 2024
Number of normal security tickets registered 9 14 19
Number of critical security tickets registered 0 0 0
Number of personal data breaches 0 0 0
SOP, including underlying documents
have had a legal review for continued
compliance and to ensure compliance
with the CCPA – California Consumer
Privacy Act in the U.S.
The security platform is supported
by an industrialized information
security and compliance service that
simplifies work to ensure compliance
with internal and external audits.
This security and compliance service
also acts as a compliance hub when
leveraging public cloud services.
Photocure’s security platform is audited
annually according to ISEA3402 and
ISAE3000 by PWC. The ISAE reports
are also mapped up to the Cloud
Control Matrix framework to fit industry
standards defined by the Cloud
Security Alliance. Photocure keeps a
live dashboard on all security incidents.
In addition, Photocure employees
are encouraged to actively report all
suspicious e-mails they receive via the
MailRisk solution in Outlook. In 2024,
566 suspicious e-mails were reported
by 33 employees.
Notable achievements in Data
protection & IT security in 2024:
Kept security tickets with severity
“critical” to zero.
Data Privacy refresher training
for all employees held to make sur
every employee gets a better
understanding on how to handle
personal data in their daily work
Implemented Mobile Security
Management for all mobile devices
having access to company data. It
increases the security for mobile
devices and a remote wipe-out of all
company data is possible when an
employee leaves the company or if
the device is stolen.
104
ESG Report Photocure – 2024
Business conduct
(G1)
Business ethics & transparency
Being part of a global value chain,
Photocure is directly and indirectly
exposed to ethical risks through
its business operations. Ethical
misconduct could negatively impact
Photocure’s business reputation
whereas a solid corporate governance
generates trust in the company’s ability
to do things the right way.
Therefore, Photocure has high focus
on conducting business in the most
ethical and transparent way. This
includes good corporate governance,
commitment to local and industry
specific business ethics norms, such as
pharma industry associations ethical
codes for interactions with health care
professionals, ethical research, as well
as anti-corruption and adherence to
Photocure’s core values and respect for
human rights.
In the reporting period, Photocure was
not involved with any negative impacts
related to business ethics or as a result
of its business relationships.
Governance
information
105
In 2021 Photocure became a participant
of the UN Global Compact which
commit the company to respect the
ten principles related to human rights,
environment, labor, and anti-corruption.
The company’s CEO and management
team are responsible for following up
business ethics and anti-corruption
work at Photocure. As part of this, the
anti-corruption policy was reviewed and
updated in Q4 2023.
Photocure has high focus on
conducting business in the most
ethical and transparent way.
Senior management are responsible
for the implementation of Policy
commitments related to responsible
business conduct in daily company
activity. New and reviewed policies
are being introduced to all relevant
employee categories or functions within
Photocure’s quality system.
Trainings on newly introduced policies
and standard operation procedures
ensure that daily practices are adapted
as appropriate.
Each year, the Board of Directors
conducts a thorough risk assessment of
the significant parts of the company’s
business and outlook in order to identify
risks and potential risks and remedy
any incident that may have occurred.
This company risk assessment
includes areas relating to corruption
and business ethics. In 2024, suppliers
and sub-contractors were subject to a
human rights review including the risk of
corruption; see Human Rights Chapter
in the appendix.
New Board members receive a general
introduction training from management
and the legal counsel. The training
includes an introduction to business
ethics and insider rules, as well as a
review of the company’s corporate
governance and sustainability strategy.
In addition, new Board members
receive an introduction to quality
and compliance. A process has been
established to ensure conflicts of
interest are prevented / mitigated. The
topic is included in all Board agendas:
Board members need to confirm that
there are no conflicts of interest related
to any agenda items. Furthermore, the
“Board rules of procedure” state that
“Members of the Board shall notify the
board if they hold a material direct
or indirect interest in any agreement
or transaction entered into by the
company”. Conflicts of interest are not
disclosed to stakeholders. In 2024 one
new board member was appointed and
trained according to the above process.
Photocure’s framework for corporate
governance is intended to decrease
business risk, maximize value and
utilize the company’s resources in an
efficient, sustainable manner, to the
benefit of shareholders, employees
and society at large. The company
seeks to comply with the Norwegian
Code of Practice for corporate
governance (NUES). Critical concerns
are being communicated to the Board.
The Leadership team has reported
no critical concerns to the board in
2024. There have been no significant
instances of non-compliance with
laws and regulations in the reporting
period, and no fines or non-monetary
sanctions were incurred or paid.
Compliance program
Photocure has established a
compliance program in line with the U.S.
“OIG Compliance Program Guidance
for Pharmaceutical Manufacturers”.
The program has the following pillars:
risk assessment, policies & procedures,
training, supplier management,
monitoring, and reporting and
investigations. The purpose of the
compliance program is to ensure ethical
and responsible interactions with health
care organizations, professionals and
stakeholders.
The following policies set the frame for
business ethics and compliance:
Code of Conduct
Anti-corruption policy
Supplier and Partner Code of Conduct
Quality and compliance policy
Quality and compliance manual
The Code of Conduct, Anti-corruption
policy and the Supplier and Partner
Code of Conduct are available on
Photocure’s website and have been
approved by senior leadership.
All policies above are periodically
reviewed, and all employees are trained.
All new employees are introduced to
the content of the documents as part
of their onboarding. More detailed
written procedures are in place to
ensure policies are being implemented
in business activities and that they are
in line with applicable regulations and
guidelines.
Reporting and monitoring
Employees and external stakeholders
can report suspected cases of business
ethics breaches or corruption through
a whistleblowing channel with several
anonymous and non-anonymous
contact options. All employees have
been introduced to the channel, both in
meetings and in writing.
Within Business ethics & transparency
several notable achievements can be
reported for 2024:
All new employees were trained
in business ethics and
compliance. All relevant employees
had refresher trainings in the
applicable industry codes for ethical
sales and marketing.
Goals and targets for 2025
Maintain the compliance breaches
with severity “critical” to zero
Maintain employee awareness
including training on compliance
and execution of the activities as
outlined in the compliance program
106
ESG Report Photocure – 2024
Photocure ASA (“Photocure”) is covered by the Norwegian Transparency Act and is obliged to
publish an annual due diligence statement regarding our investigations whether there are any
actual or potential adverse impacts on human rights or decent working conditions in our own
operations, our supply chain and other business relationships.
APPENDIX 1: Transparency Act statement 2024
107
1. About this report
The Norwegian Transparency Act,
effective from 1 July 2022, aims to
ensure that enterprises respect
fundamental human rights and
maintain decent working conditions in
their production and services. It also
grants the public access to information
on how enterprises manage negative
impacts in these areas. Photocure
ASA (“Photocure”) is covered by the
Norwegian Transparency Act and
is obliged to publish an annual due
diligence statement regarding our
investigations whether there are any
actual or potential adverse impacts
on human rights or decent working
conditions in our own operations,
our supply chain and other business
relationships.
This statement sets out Photocure’s
commitment, ambitions and work
related to human rights and decent
working conditions. It has been
approved by Photocure’s management
and Board of Directors, and comprises
both the operations of Photocure
ASA and our subsidiaries. However,
as Photocure shares its governance
system on compliance, business
ethics and human rights within the
whole organization, the content of this
statement reflects the Photocure’s
work on human rights due diligence.
2. Policy for handling
information requests
To ensure consistent and effective
internal handling of information
requests in compliance with the
Norwegian Transparency Act, the
following policy has been established:
Photocure’s Head of Global Regulatory,
Quality and Compliance is responsible
for managing and overseeing all incoming
information requests. All inquiries
regarding this statement or Photocure’s
due diligence work should be directed to:
compliance@photocure.com.
Upon receipt, all requests are logged
in the internal tracking system, noting
the date received, requester’s details,
and the nature of the information
requested. Requests will be evaluated
to determine if they fall within the
scope of the Transparency Act,
focusing on the company’s handling
of adverse impacts on human rights
and working conditions. If the request
is unclear, the requester should be
contacted promptly to clarify and
obtain additional details if necessary.
The required information will be
provided within three weeks upon
receiving the request. If the request is
extensive or complex, the requester
should be notified within three weeks
about the extension, explaining the
reasons and setting a new deadline
of up to two months. If the request is
denied, the requester shall be informed
of the reasons, the legal basis for the
denial, and their right to demand a
more detailed justification.
This report will be updated and
published on Photocure’s website by
30 June each year.
3. About Photocure
Established in 1997 by the Norwegian
Radium Hospital, Photocure has
since transformed from a technology-
based focus and being a global
leader in photodynamic therapy
to a valued contributor in the care
and treatment of bladder cancer
patients. Photocure has successfully
commercialized products like Metvix
®
for non-melanoma skin cancer and
Hexvix
®
/Cysview
®
for enhanced bladder
cancer detection and management.
At Photocure, we focus all our efforts
and resources on improving care for
bladder cancer patients. Our medicinal
product makes cancer cells visible for
physicians so they can optimize the
diagnoses, staging and treatments for
cancer patients. More than 850 000
diagnostic procedures have been
conducted around the world to date.
Operating within a highly regulated
business, we acknowledge our
economic, social, and environmental
impact on stakeholders and
surroundings. Our mission is to deliver
transformative solutions for bladder
cancer patients, benefiting healthcare
providers and the broader medical
community. Through a steadfast
commitment to trust and maximizing
shareholder value, we strive to generate
positive impacts on the economy,
environment and society. Our value
chain is detailed in the figure below.
Human Rights
and Transparency
Act Report
108
ESG Report Photocure – 2024
Photocure value chain oversight
PhotocureSuppliers
Customers
Product Quality Oversight
Supply Chain Oversight
Intellectual Property
Risk Management
Active substance
manufacture
Semifinished product
manufacture
Finished Product
manufacture
Transport | Storage |
Distribution to
Hospitals,
Wholesalers,
Pharmacies
purchase the
product
Marketing Authorization Holder
Product Quality & Safety
Surveillance
Sales & Marketing
Customer Support & Training
Ensures Access to
the product & BLC
procedure
Supports further
Research & Clinical
Trials in Bladder Cancer
End users
Bladder Cancer
Patients get
staged | diagnosed |
follow up
procedures
Urology
Healthcare
Professionals
conduct the
BLC procedure
with the
Product
Medical Equipment for Blue Light Cystoscopy
is provided by 3rd Party Medical Device companies,
depending on Market Authorizations
Value chain oversight
4. Our principles regarding
human rights and decent
working conditions
4.1 Human rights
Photocure is committed to respecting
and promoting human rights
throughout the value chain, from
employees to our suppliers to the
communities served. Suppliers and
partners are expected to uphold
high ethical standards when it
comes to respecting human rights
within their own workforce and their
subcontractors.
4.2 Prohibition of child labor and
forced labor
Photocure does not accept any form
of child labor or forced labor. We fully
adhere to the principles outlined in the
UN Convention on the Rights of the
Child, and expect our suppliers and
business partners do the same.
4.3 Labor rights, health, and safety
Photocure expects all our suppliers
and business partners to adhere
to fundamental labor rights, as well
as all relevant laws and regulations.
Suppliers and business partners are
expected to guarantee equitable
wages, a good workplace environment
and safe working conditions, the
freedom of association and the
effective acknowledgment of the right
to collective bargaining.
4.4 Discrimination and harassment
Photocure does not accept any form of
discrimination based on gender, gender
identity, age, origin, religion, sexual
orientation, physical appearance,
health, disability, trade union activity,
political opinions, nationality, or family
situation. Interactions with individuals
109
both inside and outside our company
are conducted with dignity and respect.
Harassment and discrimination are not
tolerated.
5. Guidelines and routines
Our Code of Conduct, together with
our Corporate Governance Code
and Standard Operating Procedures,
outlines how we manage and
operate at Photocure. Additionally,
we have established procedures
for interacting with our suppliers,
including qualification and follow
up, risk assessments, auditing, and
procurement.
5.1 Code of Conduct
Photocure’s Code of Conduct and the
Supplier and Partner Code of Conduct
(the Codes) contain the principles
that guide our behavior and highlight
important cultural value.
The Codes apply to every Photocure
employee, contractor and to everyone
who does business on behalf of the
company. New employees receive
information about the Code as part
of the onboarding process, and the
Codes are accessible to all employees
and contractors through the Quality
Management System and at Photocure
website. Employees are responsible for
understanding the content, and act in
compliance with the Codes of Conduct.
Annual training on the Code of Conduct
is mandatory for employees, and failure
to complete the required training on
time may result in disciplinary actions.
As our business and external
environment change, the Codes will
also change. Through our compliance
program, the Codes will be subject
to periodic review and updates. The
most updated Code of Conduct was
approved on 4th March 2024.
5.2 Supplier and Partner Code
of Conduct
In our operations, we rely on several
suppliers and business partners.
We consider them extensions of our
company, and therefore, we insist
that they too maintain high ethical
standards.
We have established a Supplier and
Partner Code of Conduct or our
suppliers and business partners.
It aligns with the ten principles of
the UN Global Compact, which are
based on the Universal Declaration
of Human Rights, the International
Labor Organization’s Declaration on
Fundamental Principles and Rights
at Work, the Rio Declaration on
Environment and Development, and
the United Nations Convention Against
Corruption.
The Supplier and Partner Code of
Conduct is communicated to suppliers
and business partners, who must
confirm their compliance with this. We
also expect our suppliers and partners
to require their own suppliers and
subcontractors to follow these principles.
If we become aware of any actions or
conditions not in compliance with the
Supplier and Partner Code of Conduct,
and which is not corrected within a
reasonable time, our company reserves
the right to terminate the agreement with
the supplier or partner. The most updated
Supplier and Partner Code of Conduct
was approved on 23rd May 2024.
5.3 Raising concerns
– whistleblowing policy
We require all Photocure personnel
to immediately report any suspected
violation of our ethical principles.
Suspected violations should be reported
to the employee’s manager, the HR-
department, the Chairman of the Board
or to compliance@photocure.com.
Emailed concerns will be forwarded to
the Compliance Officer and the Chief
Financial Officer (CFO) for evaluation
and appropriate action.
We strictly prohibit retaliation against
anyone for making a good-faith report.
All reports of suspected violations are
taken seriously and will be followed up,
as appropriate. Reports may be made
anonymously.
110
ESG Report Photocure – 2024
6. Risks of negative
consequences
As a business with outsourced
manufacturing and logistics, we rely
on suppliers, individuals or
organizations who provide goods
and services. We are thereby directly
and indirectly exposed to risks and
opportunities in its business relations
and supply chain.
Photocure operates globally with
headquarters in Oslo, Norway, and
additional offices in Princeton, USA,
and Düsseldorf, Germany. We also
maintain affiliates in France and Canada.
According to the Global Rights Index
provided by Transparency International
and the International Trade Union
Confederation (ITUC), the countries
where we operate are categorized
as having low to moderate risks of
workers’ rights violations. We require
and routinely audit partners’ adherence
to contracts and agreements. Contract
manufacturers and their subcontractors
undergo due diligence and annual risk
assessments (measures and analyses
potential risks) related to human rights
and working conditions. The outcomes
are also published in the annual ESG
report on the Photocure website.
6.1 Mapping and risk assessment of
suppliers
In 2024, suppliers and sub-contractors
were subject to a human rights review.
The risk assessment was divided in two;
1) a risk assessment of the suppliers
contributing to the company’s daily
operations, and 2) a more in-depth risk
assessment of the supply chain related
to its contract manufacturers and their
sub-contractors.
1) In the human rights risk assessment
of the relevant suppliers contributing
to our daily operations, such as
consultants, rent of offices and
canteen services, all these suppliers
were considered as “low risk”. This risk
assessment of these suppliers is based
on the risk criteria “country risk” and
“industry risk”.
2) For the outsourced part of our
business (product manufacturing), a
human rights risk assessment was
conducted based on the geographic
location of the company’s contract
manufacturers, as well as their
subcontractors for raw materials. Within
the supply chain no new contracts
were signed in the reporting period.
Out of 22 suppliers contributing to our
product (including sub-contractors of
our suppliers), seven subcontractors
were rated as “medium risk” and 15 as
“low risk”. The medium risk suppliers are
located in India, Israel, Italy, Spain and US.
The Indian subcontractors (3) are
subcontractors and provider of raw
materials to one of our main suppliers.
None of the these three are considered
as critical for our company. According
to the Global Rights Index, India is inter
alia especially exposed to human rights
risks with regards to low wages, lack of
social security, gender discrimination,
harassment at work and indecent
working conditions. We have however
not identified any potential or actual
adverse impacts related to human
rights with the Indian subcontractor.
One of the other medium risk suppliers
is in Israel. This subcontractor is owned
by a major and renowned international
company. In this region, water scarcity
is a concern, and Israel’s control over
water resources and access to water
in Palestinian territories, whether for
the population or production, poses
known human rights risk. In the case
of this subcontractor, the production
facility is situated near Tel Aviv, not in
occupied territory. We have assessed
the risk of the water used in the
production facility originating from
occupied territories and considers it
to be low. However, we will continue
to monitor this issue closely. Despite
this assessment, no potential or
actual adverse impacts related to
human rights concerning the Israeli
subcontractor have been identified.
The remaining supplier’s (3) rated as
medium risk are in Italy, Spain and
US. These are renowned international
companies and have policies and
procedures in line with UN Global
Compact.
6.2 Process to remediate negative
impacts
All suppliers have received Photocure’s
Supplier and Partner Code of Conduct.
In addition, all Photocure’s critical
suppliers
1
are assessed for presence
of a Code of conduct/corporate
responsibility policy.
When engaging new suppliers, we have
established written procedures for
qualification and follow up. For new
critical suppliers, these procedures
also include a detailed questionnaire
aimed at gathering necessary
information for us to assess, among
other factors, any human rights risks
associated with the new supplier.
All new and revised supplier contracts
contain a provision requiring suppliers
to materially comply with all relevant
laws concerning ethical and responsible
standards of behavior. This includes,
but is not limited to, regulations
regarding human rights, labor practices,
environmental protection, sustainable
development and the prevention of
bribery and corruption, as outlined in the
Ten Principles of the UN Global Compact.
We maintain continuous and close
dialogue with all our suppliers, regularly
reviewing their business conduct and
adherence to responsible practices
during business meetings.
7. Measures
To mitigate the risks associated with
the three medium risks suppliers in
India we have been in dialogue with
the primary supplier in Spain and
requested information concerning the
company’s human rights assessment
of the supply chain. Initial feedback
from the supplier regarding the
medium risk subcontractors suggests
1 Critical suppliers are defined according to
internal procedure and risk matrix
111
that no specific risks have been
identified as materialized or imminent.
Consequently, there is currently no
justification for implementing any
mitigation measures. The Spanish
supplier has also confirmed that they
are in the process of monitoring the
relevant subcontractors for human
rights risks.
As of the present, the information
we have received gives us no reason
to suspect any human rights violations
by our subcontractors. However,
given the associated risk in both
India and Israel, we will maintain
ongoing follow up with the relevant
suppliers and subcontractors to
secure all necessary and relevant
information to assess whether any
mitigating measures should be
implemented.
As a part of our initial and ongoing
evaluation of suppliers, we are
confident that our suppliers have the
capability to deliver the materials/
services as requested with the
necessary quality, and comply with all
relevant laws regarding ethical and
responsible standards of behavior in
accordance with the United Nations
Global Compact or similar.
8. Results
The status of ESG topics related
policies from all critical suppliers
was assessed.
Photocure has not terminated or
discontinued contracts with any
suppliers due to sustainability
breaches.
Goals and targets for 2025
Discuss the “medium risk” rated
Indian sub-contractors in business
review meetings with the supplier.
Follow up to ensure we receive
all requested information from
subcontractors and assess the need
for any mitigating measures.
Incorporate the monitoring
of environmental, social and
governance topics in regular
business review meetings.
Continuously assess the ESG topics
related policies of all critical suppliers
to ensure they meet our standards.
112
Images
Photocure: p. 2, 7, 21, 22, 23, 75, 86, 89, 91, 109.
iStock: p. 13, 14, 19, 26, 38, 41, 42, 82, 94, 98, 101, 102, 104, 106, 111.
Unsplash: p. 17.
113
PHOTOCURE ASA
Hoffsveien 4
0275 Oslo, Norway
+47 22 06 22 10
info@photocure.no
PHOTOCURE INC.
202 Carnegie Center, suite 101
Princeton, NJ 08540, USA
+1 609 759 6500
info@photocure.com
PHOTOCURE GMBH
Breite Str. 27
40213 Düsseldorf, Germany
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