PHOTOCURE ANNOUNCES PAYMENT RECEIVED FOR LUMACAN® DEVELOPMENT

Oslo, Norway, January 2, 2012: Photocure ASA (OSE: PHO), a specialty pharmaceutical company focused on photodynamic technologies in dermatology and cancer, announces today that it has received a payment of US$4.5M from Salix Pharmaceuticals, Inc. (NASDAQ:SLXP) regarding development of Lumacan® to date and the commitment to continue the development.

Lumacan is a photodynamic colorectal diagnostic intended to significantly improve the detection of precancerous and cancerous lesions in the colon through fluorescence diagnosis. Photocure signed a strategic global agreement with Salix for the development and commercialization of Lumacan in October 2010. The collaboration with Salix is progressing well.

Salix is currently developing an optimal oral formulation of Lumacan to be used in clinical studies. During the third quarter of 2012 Salix initiated an exploratory study designed to evaluate fluorescence kinetics of Lumacan following enema administration. The oral prototypes are planned to be introduced into clinical trial in 2013.

Kjetil Hestdal, President and CEO of Photocure, said: “Given its successful expertise and experience in developing and marketing treatments for gastrointestinal diseases, Salix is an excellent partner to take Lumacan to the market. We look forward to continuing the collaboration with Salix on the future development of Lumacan.”

For further information, please contact:
 
Photocure
President & CEO Kjetil Hestdal
Tel: + 47 913 19 535, Email: kh@photocure.no

CFO Erik Dahl
Tel: +47 50 55 000, Email: ed@photocure.no

M: Communications
Mary Clark, Amber Bielecka, Hollie Vile
Tel: +44 207920 2361, Email: photocure@mcomgroup.com

About Lumacan®
Lumacan is being developed to increase the detection rate of polyps and colorectal cancer through fluorescence diagnosis. Colorectal cancer is traditionally diagnosed through colonoscopies (visual examination) with white light. The market for colonoscopies is growing as a result of extensive patient screening programs in Europe and USA. In the US, it is estimated that approximately 14 million colonoscopies are being carried out annually for screening of colorectal cancer. At the same time, it is increasingly being recognized that standard white-light colonoscopy has considerable limitations when it comes to optimal detection of colorectal cancer.