August 8, 2018 / 10:01 AM / a year ago

UPDATE 1-Photocure sees upside potential to U.S. growth, fully financed

(Adds quotes from interim CEO, more after presentation)

OSLO, Aug 8 (Reuters) - Norwegian bladder cancer drug maker Photocure sees significant growth potential in the U.S. requiring continued investments in 2018, but says growth strategy is fully financed.

* “We do not need more capital to finance growth going forward; the U.S. investment plan is fully funded,” interim Chief Executive Erik Dahl told Reuters, adding that the second half of the year normally is more capital positive and that he “sees no cash problems”

* “We will update the market later this year on the guidance for U.S. revenues in 2020 of USD 20-25 million,” he said

* “We wish to gather experiences particularly from how the surveillance market develops as this segment is new to us and has a significant potential,” he added

* “We need to know more about this segment to give a solid guidance for 2020, but we see an upside potential,” the CEO said

* Photocure reported Q2 revenues of NOK 45.7 million (39.3 million), with a recurring EBITDA of NOK 0.7 million (-4.4 million)

* “Future growth in Nordics will have to come mostly from Sweden and we focus on developing that market”, the CEO said, adding that “in the largest market, Denmark, we have a very high penetration rate and limited growth opportunities”

* The company has no plans to invest more in its non-urology assets Visonac and Cevira, and is in discussions with potential partners as well as evaluating strategic alternatives for those segments

* Photocure shares traded up 7.4 percent at a 15-month high of NOK 38.4 at 0957 GMT source text for Eikon: further company coverage: (Reporting By Camilla Knudsen)

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