Raytheon awarded $71 million in Navy contracts for missile systems
Introduction & Market Context
Photocure ASA (OB:PHO), the self-described "Bladder Cancer Company," presented its first quarter 2025 results on May 8, showing continued revenue growth despite challenges in certain segments. The company, which specializes in blue light cystoscopy (BLC) technology for bladder cancer diagnosis, reported modest financial improvements while advancing several strategic initiatives aimed at expanding its global footprint.
Trading at 52.4 NOK as of May 7, 2025, Photocure shares have been moving within a 52-week range of 47-69 NOK, reflecting investor caution amid the company’s ongoing transition from regional player to global bladder cancer specialist.
Quarterly Performance Highlights
Photocure reported Q1 2025 product revenue of 125.3 million NOK, representing a 7% year-over-year increase from 116.8 million NOK in Q1 2024. The company maintained profitability with EBITDA of 1.8 million NOK, or 3.6 million NOK when excluding business development expenses.
As shown in the following consolidated income statement, while revenue grew, operating expenses increased 11% year-over-year, resulting in an EBIT of -5.6 million NOK compared to 0.7 million NOK in Q1 2024:
The company’s financial performance reflects its continued investment in growth initiatives while maintaining a strong balance sheet with 260 million NOK in cash and no term debt. Photocure completed a share buy-back program of 500,000 shares during the quarter, demonstrating confidence in its long-term prospects.
Regional Performance Analysis
Photocure’s performance showed significant regional variations in Q1 2025. North American revenue increased by 2% year-over-year despite a 6% decline in unit sales, primarily due to a 71% reduction in flexible cystoscopy accounts and customer order timing issues. The rigid cystoscopy segment, however, maintained growth consistent with previous quarters.
The company continued to expand its U.S. installed base, with 8 new account towers and 13 upgrades from existing accounts. Active accounts in the U.S. grew approximately 17% year-over-year to 337, as illustrated in this chart:
In contrast, European operations delivered stronger results with revenue increasing 11% year-over-year and unit sales growing 1%. This growth was primarily driven by strong performance in the DACH region (Germany, Austria, and Switzerland). The company noted that Q1 2025 marked its highest revenue quarter ever for Photocure Europe.
The segment performance breakdown highlights these regional differences:
A key driver of European growth was the successful launch of Olympus BLC Visera Elite-III systems, with 30 installations across Europe during Q1 2025. Additionally, strengthened guidelines in France and Italy now recommend blue light cystoscopy for specific patient populations, supporting further adoption.
Strategic Growth Initiatives
Photocure outlined several strategic initiatives aimed at accelerating growth and expanding its market presence. The company is focusing on three main areas: growing Hexvix/Cysview sales, developing BLC’s role as a definitive diagnostic in bladder cancer care, and expanding its product portfolio.
A significant initiative is the collaboration with ForTec to provide mobile BLC capability in the U.S., which has gained momentum with 57 accounts utilizing the service since its mid-2024 launch. This approach allows healthcare providers to access BLC technology without major capital investments.
The company has also established a strategic partnership with Richard Wolf to develop and commercialize a next-generation flexible blue light cystoscope, addressing an estimated global market opportunity of 1.3 billion USD:
Internationally, Photocure reported progress with its Asieris partnership programs. Notably, Hexvix received early market authorization in China on November 5, 2024, potentially opening a significant new market. Additionally, the NDA for Cevira, a non-invasive treatment for cervical HSIL (NSE:AGIG), was accepted for review in China in May 2024.
Financial Position
Photocure maintained a solid financial position in Q1 2025, with positive operating cash flow of 4.1 million NOK. The company’s balance sheet showed 259.5 million NOK in cash and short-term deposits as of March 31, 2025, compared to 293.9 million NOK at the end of 2024. The reduction primarily reflects the share buy-back program completed during the quarter.
The following cash flow and balance sheet summary illustrates the company’s financial stability:
Despite increased investments in growth initiatives, Photocure expects continued operating leverage and forecasts 7-11% product revenue growth with year-over-year EBITDA improvement for full-year 2025.
Forward-Looking Statements
Looking ahead, Photocure outlined several key milestones and objectives for 2025 and beyond. The company expects 7-11% product revenue growth and year-over-year EBITDA improvement in 2025, with continued operating leverage and significant growth in milestone payments.
Photocure plans to focus on increasing Hexvix/Cysview kit throughput and tower installations, particularly through the ForTec mobile tower national rollout in the U.S. and the Olympus equipment launch in Europe. The company will also advance its partnership with Richard Wolf to develop the next-generation Flexible BLC system.
Additional priorities include presenting and publishing clinical data supporting BLC usage, improving access to BLC technology by facilitating market entry for additional equipment manufacturers, and supporting Asieris in the commercialization of Hexvix in China and the regulatory review of Cevira.
As summarized in the company’s presentation, Photocure remains focused on positioning BLC as the precision diagnostic in the rapidly evolving non-muscle invasive bladder cancer (NMIBC) treatment landscape:
With its strategic initiatives gaining traction and a solid financial foundation, Photocure appears positioned to navigate regional challenges while pursuing longer-term growth opportunities in the global bladder cancer diagnostic and treatment market.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.