January - June
· Net sales rose by about 31 percent to SEK 8,403k (6,412k).
· Expenses increased by SEK 6,610 to SEK -25,101k (-18,522k). The increase
relates to the settled patent dispute in the US. Excluding legal fees, Genovis
reduced its expenses during the six-month period by SEK 2,058k to SEK 13,462k
· Operating result was a loss of SEK 11,402k (loss: 10,260k). Excluding legal
fees and reimbursement from the insurance company the operating result was a
loss of SEK 4,861k (loss: 8,741k).
· Comprehensive income was a loss of SEK 11,574k (loss: 10,355k). Excluding
legal fees and reimbursement from the insurance company, comprehensive income
was a loss of SEK 5,033k (loss: 8,836k).
· Comprehensive income per share basic and diluted totaled SEK -0.31 (-0.45).
Excluding legal fees and reimbursement from the insurance company, comprehensive
income per share was a loss of SEK 0.13 (loss: 0.38).
· Cash flow from operating activities during the six-month period was SEK
· Cash and cash equivalents including short-term investments amounted to SEK
10,011k (9,240k) at the end of the half-year.
· In June Genovis reached a settlement in the patent dispute with Promega
Corporation and entered into a royalty-based global licensing agreement
regarding the patent involved in the dispute.
· In May, Genovis carried out a rights issue that was oversubscribed by 10
percent. The rights issue raised about SEK 23 million before issue expenses for
· Genovis launched a further development of FabULOUS®. The new product is
being marketed under the name FabULOUS® kit.
· Genovis launched GingisREX®, a new enzyme aimed at customers throughout the
proteomics market. The products that Genovis has launched to date have solely
been used for modification of antibodies, while GingisREX can be used for
proteins in general.
· Net sales rose by about 30 percent to SEK 4,595k (3,526k).
· Comprehensive income was a loss of SEK 8,121k (loss: 5,348k).
· Comprehensive income per share basic and diluted totaled SEK -0.21 (-0.22).
· Cash flow from operating activities was SEK -8,499k (-4,624k).
Comments from CEO Fredrik Olsson
The second quarter showed continued strong sales growth for the Company’s
products and was the single best quarter in the history of the Company. Sales
amounted to SEK 4.6 million, an increase of 30 percent year over year and 21
percent quarter over quarter. For the six-month period as a whole sales rose 31
percent, demonstrating stable organic growth in the product portfolio. It is
particularly gratifying that we see growth in all product groups during the
At the end of the second quarter, we reached a settlement in the legal dispute
that has been ongoing since 2014. We are pleased to have reached an agreement
that gives us royalty income at good levels, but above all, the agreement is
strategically important to increase the size of the market and to improve
conditions for faster adoption of FabRICATOR in the production of antibody
drugs. Now that there are two suppliers of the enzyme, the prospects have
improved for the enzyme to be included in critical methods of analysis for the
production of antibody-based drugs.
The market for antibody-based drugs is undergoing strong growth and there is a
clear need to simplify and improve the analytical methods associated with
production. We are now also seeing more requests for larger volumes for use
specifically in quality control in the production of antibodies, for which
reason I expect continued growth for FabRICATOR since we are still in an early
While revenues from sales have increased sharply, the cost base--excluding the
legal costs of the dispute with Promega--has declined 13 percent compared with
the first half of 2015. However, the legal expenses associated with the dispute
have had a negative impact on earnings for the period. As a result of the
settlement, these expenses will end during the beginning of the third quarter.
It is worth noting that organic growth continues without any negative effect on
gross margin, indicating efficient use of resources in the production of our
products and that the price level remains at a satisfactory level.
As I look ahead to the rest of the year I expect continued good organic growth.
We will increase our efforts in sales and marketing to further drive growth. A
clearer presence in the Asian markets will be prioritized, while strengthening
our own sales organization in North America and Europe. We will also continue to
work to broaden the market for our existing product portfolio with new products
aimed at new applications, at the same time that we follow the strategy of
expanding the product portfolio by introducing new products. In line with this
strategy, in the second quarter we launched two new products – GingisREX and
FabULOUS Fab Kit. GingisREX opens a new market for us because the product can
not only be used for antibodies, but also within general protein analysis.
FabULOUS Fab Kit simplifies handling of antibody fragments for a certain type of
antibody during production.
In May we carried out a rights issue that was oversubscribed. The additional
capital, together with the strong growth we continue to demonstrate, will
provide good conditions for further investments in market expansion and a
continued positive trend for Genovis.
I would like to thank all of our engaged shareholders and dedicated employees
for their efforts, which have resulted in yet another successful six months and
created good prospects for a positive development moving forward.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: 0046
(0)46 -101233 email@example.com (firstname.lastname@example.org)
This information is information that Genovis AB is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
person set out above, on August 28, 2016.
Genovis is a global company that offers enzyme products that facilitate
development and quality control of biologics to customers in the pharmaceutical
and medical technology industries. The Company markets several enzyme products
(“SmartEnzymes”) in innovative product formats all over the world.
The organization consists of Genovis AB and the wholly owned subsidiary Genovis
Inc. in the US. Genovis Inc. handles all sales of enzyme products on the North
American market and Genovis AB handles sales in the rest of the world. Genovis
shares are listed on Nasdaq First North Stockholm and Consensus is the Company’s
Certified Adviser, t: +46(0) 31 745 50 00.
This press release is a translation of the Swedish original. In the event of any
discrepancy between this translation and the Swedish original,
the Swedish version shall prevail.GlobeNewswireglobenewswire.com
Last updated on: 30/08/2016