Photocure (PHO) investor relations material

Deal rationale and strategic fit

• Acquisition integrates AssureMDx, a non-invasive, guideline-endorsed urine-based molecular diagnostic, expanding upstream in the bladder cancer care continuum and supporting risk stratification and early detection.

• Enables access to the $6 billion U.S. hematuria evaluation and urine biomarker market, significantly expanding the addressable market.

• Leverages established commercial and medical infrastructure, enabling efficient integration and rapid adoption through existing urology relationships.

• Strengthens the platform with a clinically validated, FDA Breakthrough Device Designation product included in AUA guidelines.

• Supports expansion into precision diagnostics, adjacent uro-oncology indications, and new technologies.

Financial terms and conditions

• Total consideration is $30.5 million in cash and equity, with net consideration of approximately $28.5 million after Vesica Health's cash.

• $14.75 million paid upfront ($13.75M at close in some reports), with remaining payments tied to ADLT status and CMS reimbursement milestones.

• Milestone payments include $2.75 million in stock for ADLT status and up to $11 million for CMS reimbursement, with all equity based on VWAP over 30 days prior to closing.

• Transaction structure preserves balance sheet flexibility and aligns value creation with execution.

• Consideration at close funded through cash and treasury shares; milestone payments from available cash and facilities.

Synergies and expected cost savings

• Substantial commercial and operational synergies expected by leveraging existing sales force, laboratory capabilities, and customer relationships.

• AssureMDx can be deployed with limited incremental SG&A and low ongoing OpEx.

• Attractive gross margins and operating leverage anticipated, accelerating revenue growth and profitability.

• Immediate access to high-value urology accounts and proven model for driving utilization.

• Consolidated business expected to achieve above 25% CAGR revenue growth from 2026-2030, with adjusted EBITDA margins above 25% by 2030.