Interim Report January-September 2022
· Net sales totaled SEK 22,979 (15,699) thousand, with a growth rate of 46%. Growth is 26%, adjusted for currency effects.
· Gross profit rose by 58% to SEK 22,475 (14,195) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 6,997 (2,202) thousand.
· Operating profit jumped SEK 4,246 thousand and totaled SEK 4,993 (747) thousand.
· Comprehensive income for the period totaled SEK 5,869 (1,013) thousand.
· Comprehensive income per share totaled SEK 0.09 (0.02).
· Cash flow from operating activities was SEK 5,042 (4,613) thousand.
· Cash and cash equivalents at the end of the period totaled SEK 80,987 (45,210) thousand.
January – September 2022
· Net sales totaled SEK 76,646 (50,957) thousand, with a growth rate of 50%. Growth is 34%, adjusted for currency effects.
· Gross profit rose by 59% to SEK 74,049 (46,577) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 20,824 (6,954) thousand.
· Operating profit jumped SEK 12,671 thousand and totaled SEK 15,320 (2,649) thousand.
· Comprehensive income for the period totaled SEK 19,766 (3,653) thousand.
· Comprehensive income per share totaled SEK 0.30 (0.06).
· Cash flow from operating activities was SEK 3,605 (6,377) thousand.
Comments from Fredrik Olsson, Chief Executive Officer
Sales increased by about 46% in the third quarter, 26% adjusted for currency effects, and we achieved an operating profit of approximately SEK 5 million.
We note that the influence of the coronavirus pandemic is gradually easing, which has had a positive impact on our customers’ activity. They are returning to a greater extent to the laboratories and projects that are less focused on vaccines and Covid-19-related drug projects.
Sales of enzymes increased by about 44% and we saw growth in all geographic markets, with Asia and North America making the strongest contributions during the quarter. Revenue from gene therapy and bioprocess is expected to contribute to volatility in individual quarters in the short term and in third quarter bioprocess contributed with SEK 1.5 million. The antibody business also saw a strong performance during the quarter, with growth of about 60%. The recently launched service business for antibody analysis have been initiated and first orders have been delivered in the quarter. Overall, our sales performed well and the expansion of our commercial organization, combined with a broader product offering, is reflected in increased customer interaction and new customers.
Our total cost base has increased compared with the corresponding period last year. The increase in the cost of raw materials is largely associated with price increases that have been further accelerated by currency effects, since many of the raw materials are directly linked to other currencies. We have periodically experienced certain supply chain challenges and we are actively working with our suppliers to secure access to raw materials. Personnel costs have increased as a result of the strategic growth initiatives in our commercial organization and associated currency effects.
At the end of the second quarter we launched two new products, GlySERIAS and OmniGLYZOR. Both products have been well received, but GlySERIAS has initially generated tangible commitment among our customers. GlySERIAS mainly focuses on new formats of biopharmaceuticals, outside traditional antibodies, and the customer response has exceeded expectations.
In September, we carried out additional key hires to our commercial organization, in line with the planned strategies for the year. The new members of the commercial organization have been well integrated into our team during the year, thanks to excellent help and support from other parts of the organization, which contributed strongly to the successful initiative.
As yet, we have not experienced any clear impact among our customers due to the geopolitical and macroeconomic situation and the beginning of the fourth quarter has shown continued good customer activity in our various markets.
I would like to conclude by extending a warm thank you to my colleagues at Genovis who do amazing work for our customers every day in their quest to develop new and better treatments for patients around the world.
Half-Year Report for the First Half of 2022
· Net sales totaled SEK 21,093 (19,535) thousand, with a growth rate of 8%. Growth is -4%, adjusted for currency effects.
· Gross profit rose by 28% to SEK 22,155 (17,365) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 2,109 (2,793) thousand.
· Operating profit declined by SEK 1,129 thousand and totaled SEK 221 (1,350) thousand.
· Comprehensive income for the period totaled SEK 811 (1,033) thousand.
· Comprehensive income per share totaled SEK 0.01 (0.02).
· Cash flow from operating activities was SEK 184 (-1,747) thousand.
· Cash and cash equivalents at the end of the period totaled SEK 77,369 (41,730) thousand.
January – June 2022
· Net sales totaled SEK 53,667 (35,258) thousand, with a growth rate of 52%. Growth is 37%, adjusted for currency effects.
· Gross profit rose by 59% to SEK 51,575 (32,282) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 13,827 (4,751) thousand.
· Operating profit jumped SEK 8,426 thousand and totaled SEK 10,327 (1,901) thousand.
· Comprehensive income for the period totaled SEK 13,896 (2,640) thousand.
· Comprehensive income per share totaled SEK 0.21 (0.04).
· Cash flow from operating activities was SEK -1,437 (1,765) thousand.
Comments from Fredrik Olsson, Chief Executive Officer
Sales increased by about 8% in the second quarter. The slower growth during the quarter should be viewed in light of sales to gene therapy of approximately SEK 3 million in the corresponding quarter of the previous year. Revenue in gene therapy and bioprocess are volatile in nature in the short term, although a more even distribution across individual quarters can be expected as more projects accumulate over time. Sales in the core business within Analytics continued to show robust growth and increased by 31%. Sales revenue also increased in the antibody business and we see increased activity in the service business, where the inflow of projects is increasing once again after a period with subdued customer activity because of the pandemic.
During the quarter we launched four new products on the market within different parts of our offering to our customers. We have expanded our antibody labeling technology with yet another product for quantitative and specific labeling of antibodies. At the end of the quarter, new enzyme products were launched for use within both glycan and protein analysis, as well as a new antibody product for use in gene therapy together with our Xork enzyme. We are actively engaged in business development within several gene therapy applications for Xork together with our partner Selecta Biosciences.
Both the quarter and the first half of the year have been characterized by continued expansion of our sales and marketing organization, as well as a long-awaited return to physical marketing activities such as scientific conferences and fairs. Expansion of the sales organization and intensified marketing activities are progressing according to our plan, with an expected increase in expenses compared with the corresponding period last year. Along with successful product launches that have created a broader customer offering, the investments in our sales organization represent an important aspect of our growth strategy and expected growth.
Recently we entered into a service agreement with evitria, a leading player in the development of recombinant antibodies for the biopharma market. Under this agreement we will expand our operations to include a service business that offers fast and cost-effective LC-MS analysis of antibodies, based on automation in combination with our unique enzymes. We view the agreement with evitria as a starting point for offering automated LC-MS analysis as a service to biopharma industry customers, where the underlying trend of outsourcing research and development activities continues to grow.
We have also recently signed a multi-year license and supply agreement with a new customer in our bioprocess business for the use of our enzyme technology during the development and manufacture of a new biological drug. The agreement further strengthens us in our ambitions in the bioprocess area and we are grateful for the trust our customers have in Genovis as a supplier of new technology to the biopharma industry.
At the end of the quarter, we experienced certain challenges in the supply of raw materials for parts of the product range, which may have a temporary effect on our ability to deliver and fulfil orders. Even if external geopolitical factors currently represent an element of uncertainty, our current assessment is that our business opportunities and operational ability are good, and the beginning of the third quarter shows robust customer activity and continued growth.
I would like to warmly thank my colleagues at Genovis who, in addition to developing four new products and ensuring that our growing product portfolio is available for fast delivery, welcomed new employees and integrated them into our growing team.
Interim Report January – March 2022
· Gross profit rose by 96% to SEK 29,419 (15,017) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 11,717 (1,958) thousand.
· Operating profit jumped SEK 9,554 thousand and totaled SEK 10,105 (551) thousand.
· Comprehensive income for the period improved by SEK 11,476 thousand and totaled SEK 13,083 (1,607) thousand.
· Comprehensive income per share totaled SEK 0.20 (0.02).
· Cash flow from operating activities was SEK -1,622 (3,512) thousand.
· Cash and cash equivalents at the end of the period totaled SEK 78,119 (45,929) thousand.
Comments from Fredrik Olsson, Chief Executive Officer
The year got off to a strong start and our sales totaled about SEK 33 million, which is an increase of 107% compared with the corresponding period last year. Growth is driven by revenue from the agreement in gene therapy and strong growth in the enzyme business, where sales increased by 37%. The enzyme business grew in all major geographic markets. It is particularly gratifying to note that the locations which we have now strengthened by adding local product specialists are off to a good start with strong growth. In the antibody business, we again see growth compared with the previous quarter, and the sales trend for the antibody products that were developed for synergies with the enzyme business continues to be strong.
It is particularly satisfying to note that our antibody labeling technologies continue to show strong growth and now represent an increasing share of our total revenue streams, which strengthens us in our ambitions in enzyme-driven workflows for antibody labeling.
During the first quarter, we were able to act on several of our strategic goals, which affected costs compared with the first quarter of 2021. This is fully in line with our plan and related to the expansion we are currently implementing in our commercial organization with local representation in Shanghai and the UK. At the beginning of the second quarter, we also recruited staff to serve as local representatives in Germany and Switzerland. It is also gratifying that at the beginning of the year, we were able to invest and participate in several physical conferences and fairs compared with the previous year. In addition to the above, the total cost base has also been affected by higher raw material prices and costs related to the licensing deal with Selecta Biosciences.
World events, with the continued effects of Covid-19 on logistics, along with the war in Ukraine, have had a limited impact on our business to date. We have seen some cost increases in raw materials and supplies, but the effects moving forward are currently difficult to assess. The logistics chain is still under pressure, with delivery delays and higher prices. Many of our suppliers are still able to deliver and our exposure to Russia is deemed to be very limited. Similarly, an assessment of our markets and revenue streams also shows limited impact at this time. We work actively to make sure our products are not sold or distributed in the Russian market. Our thoughts and sympathies lies firmly with the Ukrainian people and all pepole suffering from the unjustifiable attack on democratic and human values.
Although the impact of external factors is currently difficult to assess in the short term, I maintain my positive basic view of Genovis’ future growth opportunities and the resources provided to enable us to continue to invest for further expansion.
I am pleased to welcome several new teammates to Genovis now at the beginning of the year and would also like to thank the entire team for their efforts and a good start to 2022.
Published reports can be downloaded from the Genovis website: https://investor.genovis.com/en/financial-reports/
Genovis Annual Report 2021 published
To read or download the annual report in Swedish, go to:
https://investor.genovis.com/wp-content/uploads/genovis-ar-2021-sv.pdf
To read or download the annual report in English, go to:
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Year-end Report January – December 2021
· Net sales rose by 112% to SEK 42,060 (19,850) thousand. About SEK 20 million relates to licensing agreements with Selecta Bioscience. Growth is 108%, adjusted for currency effects.
· Gross profit rose by 97% to SEK 39,024 (19,761) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 23,361 (6,196) thousand.
· Operating profit jumped SEK 17,291 thousand and totaled SEK 21,895 (4,604) thousand.
· Comprehensive income for the period improved by SEK 16,828 thousand and totaled SEK 23,175 (6,347) thousand.
· Comprehensive income per share totaled SEK 0.35 (0.10).
· Cash flow from operating activities was SEK 37,368 (-672) thousand.
· Cash and cash equivalents at the end of the period totaled SEK 81,315 (44,118) thousand.
· Magnus Långberg has been hired as the new CFO for the group; his most recent position was at Hemocue AB. Before that he worked at companies such as QPharma and BD Medical.
· Genovis has entered into an exclusive licensing agreement with Selecta Bioscience Inc. to develop and promote a novel patent pending antibody-cleaving enzyme, Xork™, as a potential pretreatment prior to the administration of gene therapy and for autoimmune diseases. Under the terms of the multi-year agreement, Genovis will receive USD 6 million in advance payment and early milestone payments, and is entitled to up to USD 598 million in development, regulatory and commercial milestone payments. Genovis will also receive double-digit royalties on sales of Xork.
January – December 2021
· Net sales rose by 52% to SEK 93,018 (61,030) thousand. Growth is 56%, adjusted for currency effects. About SEK 20 million relates to licensing agreements with Selecta Bioscience.
· Gross profit improved by 44% to SEK 85,600 (59,370) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 30,314 (8,573) thousand.
· Operating profit improved by SEK 21,403 thousand and totaled SEK 24,543 (3,140) thousand.
· Comprehensive income for the period improved by SEK 24,856 thousand and totaled SEK 26,828 (1,973) thousand.
· Comprehensive income per share, basic and diluted, totaled SEK 0.41 (0.03).
· Cash flow from operating activities was SEK 45,411 (3,755) thousand.
Comments from Fredrik Olsson, Chief Executive Officer
We show strong growth for the fourth quarter, driven in part by revenue related to the license business in Gene Therapy, as well as from a recovery in our core business in Analytics, where we saw higher customer activity in all geographic markets.
Revenue from Gene Therapy increased almost six times compared with the corresponding quarter last year and totaled about SEK 20 million, mainly attributable to license revenue from our collaboration agreement with Selecta Bioscience.
We are also pleased to see that enzyme sales in Analytics grew by 35%, reflecting the improved market situation we experienced during much of the quarter as a result of eased restrictions, with customers able to return to work in laboratories to a greater extent.
Sales in our antibody business showed a weaker trend compared with the corresponding period last year, mainly because they relate to service operations with lengthy projects, where shifts in revenue between individual quarters are not uncommon. Several development programs are currently underway for products that complement the enzyme business in gene therapy, where the first products, which were launched in 2021, were well received by our customers.
We launched two new products during the fourth quarter, which means that we launched an impressive six products in the enzyme business in 2021. Both products were well received, which confirms our ability to pay close attention to the market in order to guide our product development and create value for our customers. Continuing to broaden the product portfolio is one of our key strategic goals for both current and future application areas for our enzyme technology. We have also expanded our antibody offering with products for research in Alzheimer’s Disease and will add additional products during 2022.
Despite periods of challenges in different parts of the business in 2021, we can once again report yet another year of strong growth and it is particularly rewarding to note that we achieved our best earnings to date. Our focus on customers and on new applications for our enzyme technology is the basis of our success. In the short term, uncertainties persist regarding Covid-19 developments, but in the longer term, Genovis’ growth opportunities remain intact. We have built up a good cash base, which enables us to be enterprising and invest in Genovis’ continued growth journey.
Our successes in 2021 lay an excellent foundation for expansion as a result of license revenue and a strong expansion of the product offering through six launched products. The final quarter of the year was therefore characterized by additional bold initiatives through the expansion of our organization. We are now implementing several strategic initiatives within both the sales and business development organizations. In addition to a new vice president of global sales and marketing, at the beginning of 2022 the sales organization was strengthened with sales representatives in local markets to increase our opportunities to be even closer to our customers. In Europe, we began with a presence in the UK and we intend to expand to more geographic markets during the year. In Asia, beginning in January, for the first time we have our own sales staff in the strategically important Shanghai region in China. We also added resources for our strategic efforts in business development in order to take advantage of more opportunities in new application areas, licensing and potential acquisition opportunities in the future. At the beginning of 2022 we strengthened the commercial organization in San Diego with the aim of expanding our products and services for the antibody business.
I would like to close by thanking the Board of Directors and shareholders for their support and commitment over the past year. I would also like to warmly thank my colleagues at Genovis, who have done an amazing job of handling a challenging year with great dedication, for which reason I look forward with confidence to 2022.
INTERIM REPORT FOR July – September 2021
· Net sales rose by 10% to SEK 15,699 (14,216) thousand. Growth is 13%, adjusted for currency effects.
· Gross profit declined by 8% to SEK 14,195 (15,487) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 2,202 (3,262) thousand.
· Operating profit declined by SEK 968 thousand and totaled SEK 747 (1,715) thousand.
· Comprehensive income for the period improved by SEK 351 thousand and totaled SEK 1,013 (662) thousand.
· Comprehensive income per share totaled SEK 0.02 (0.01).
· Cash flow from operating activities was SEK 4,613 (1,191) thousand.
· Cash and cash equivalents at theend of the period totaled SEK 45,210 (46,231) thousand.
Events after the end of the period
Genovis has entered into an exclusive license agreement with Selecta Bioscience Inc. to develop and promote a novel patent pending antibody-cleaving enzyme, Xork™,as a potential pretreatment prior to the administration of gene therapy and for autoimmune diseases. Genovis will retains its rights to the Xork enzyme for all other applications to support its core business of innovative enzymatic tools for use in preclinical drug discovery, diagnostics and bioprocess applications. Under the terms of the agreement, Genovis will receive USD 6 million in upfront and early preclinical milestone payments and is eligible for up to USD 598 million in development, regulatory and sales milestone payments. Genovis will also receive double digit royalties on sales of Xork.
January – September 2021
· Net sales rose by 24% to SEK 50,957 (41,180) thousand. Growth is 34%, adjusted for currency effects.
· Gross profit improved by 18% to SEK 46,577 (39,609) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 6,954 (2,377) thousand.
· Operating profit improved by SEK 4,114 thousand and totaled SEK 2,649 (loss: 1,465) thousand.
· Comprehensive income for the period improved by SEK 8,029 thousand and totaled SEK 3,653 (loss: 4,376) thousand.
· Comprehensive income per share, basic and diluted, totaled SEK 0.06 (-0.07).
· Cash flow from operating activities was SEK 6,377 (4,030) thousand.
Reports (https://investor.genovis.com/en/financial-reports/)
Comments from Fredrik Olsson, Chief Executive Officer
Organic sales grew 13% during the third quarter of 2021, while growth was 34% for the first nine months of the year. Historically, the third quarter is a seasonally weaker quarter for our business. Restrictions on operations at major pharmaceutical companies put a damper on growth of enzymes in Analytics during the quarter. Changing customer priorities regarding projects and limited lab staffing due to restrictions have had a dampening effect on our sales, especially in early-stage discovery and preclinical projects, which continue to account for the majority of our sales. Volatile elements in order bookings and shifts in orders between individual quarters have had a short-term impact. We expect to see improved customer activity in the fourth quarter, with a return to higher growth moving forward. Changes in inventory and other revenue had a negative impact of SEK 2 million on operating profit compared with the previous year.
In October, we licensed out the therapeutic rights related to a novel enzyme to Selecta Bioscience, our largest licensing deal to date. Genovis has filed a patent application for this previously unknown enzyme, which we have named Xork. As a result of this deal we have now added gene therapy as one of the areas in which our enzymes and antibodies can be used to develop treatments for patients in need. The deal confirms our agile and customer-focused business model, in which we can quickly connect market needs with innovative enzymes in order to deliver solutions and create value.
With the Selecta Biosciences deal, Genovis also demonstrates the potential of the model to develop enzymes for the biopharma industry. Our enzymes have previously been used in bioprocessing applications and in the case of Xork, Selecta will develop the Genovis enzyme for use as a treatment. Our entrance into the gene therapy market with our new Xork enzyme has also generated product development in order to develop antibodies against Xork and other related antibody-cleaving enzymes. These antibodies will be needed during the development and commercialization of these enzymes for therapeutic use. The antibodies we have under development also offer the potential of being combined with our antibody labelling technologies, which our customers in the gene therapy field will demand in the future.
We have continued to maintain the high pace of our development pipeline and broadened our offering with additional products for modifying antibodies with the new TransGLYCIT technology. In October, we also launched a glycosidase (PNGase F) in a unique new format. PNGase F is one of the most frequently used enzymes within glycan analysis and we are convinced that our improved product can add value for our customers moving forward, especially within automated workflows. Both products have been warmly received by our customers.
We will enter 2022 with significantly strengthened liquidity to enable continued enterprising initiatives. Over the coming months, we will further strengthen our commercial organization with a new sales and marketing manager, as well as sales representatives in local markets. A strong focus on business development activities is important to Genovis and we are investing to dedicate our efforts to this strategy moving forward. Along with the recruitment of a new CFO, we will have an organization that is well positioned to continue building Genovis in the future.
HALF-YEAR REPORT FOR THE FIRST HALF OF 2021
· Net sales rose by 26% to SEK 19,535 (15,490) thousand. Growth is 37%, adjusted for currency effects.
· Gross profit rose by 32% to SEK 17,365 (13,146) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 2,793 (loss: 38) thousand.
· Operating profit improved by SEK 2,641 thousand and totaled SEK 1,350 (loss: 1,291) thousand.
· Comprehensive income for the period improved by SEK 4,156 thousand and totaled SEK 1,033 (loss: 3,123) thousand.
· Comprehensive income per share, basic and diluted, totaled SEK 0.01 (-0.02).
· Cash flow from operating activities was SEK -1,747 (-123) thousand.
· Cash and cash equivalents at theend of the period totaled SEK 41,730 (46,554) thousand.
First half 2021
· Net sales rose by 31% to SEK 35,258 (26,965) thousand. Growth is 45%, adjusted for currency effects.
· Gross profit rose by 34% to SEK 32,382 (24,123) thousand.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 4,751 (-885) thousand.
· Operating profit improved by SEK 5,081 thousand and totaled SEK 1,901 (loss: 3,180) thousand.
· Comprehensive income for the period improved by SEK 7,678 thousand and totaled SEK 2,640 (loss: 5,038) thousand.
· Comprehensive income per share, basic and diluted, totaled SEK 0.02 (-0.05).
· Cash flow from operating activities was SEK 1,765 (-1,629) thousand.
Comments from Fredrik Olsson, Chief Executive Officer
We continue to show good growth for the second quarter of 2021. Our currency-adjusted growth totaled 37% compared with the corresponding quarter the previous year and we posted increased sales in both the enzyme and the antibody business. Currency-adjusted growth totaled 41% for the enzyme business and 4% for the antibody business.
We continue to be affected by subdued customer activity for enzymes in our Analytics segment due to Covid-19, as reflected by delayed customer projects and changed priorities in research where our products are used. The pandemic has also impacted access to other products that are included in our customers’ analysis flow, which has affected their productivity. We were also subjected to disruptions in global logistics chains during the quarter, while restrictions and delays in customer projects had a dampening effect on the antibody business.
Despite these challenges, we delivered strong growth, driven by both organic growth among existing customers and new applications for our products, thereby demonstrating the power of our innovative customer-focused business model and organization.
Antibody labeling is an exciting field in which we have expanded our customer offering over time. We have now taken yet another step in the field through our license agreement with GlycoT Therapeutics At the end of the second quarter we launched the first products based on a combination of our enzyme technologies, which offer a completely new approach to designing antibodies with a defined glycan structure. The technology platform opens up several potential new markets and areas of application for us, including research, diagnostics and antibody drug conjugates (ADCs), and we intend to broaden our offering further in the future.
We continue to follow our product development strategy through the additional launches of two new products. In the most recent quarter, in addition to TransGLYCIT as described above, we launched antibody products developed in our subsidiary as a complement to our enzyme business. Several projects are underway in the antibodies business where we are leveraging synergies from our acquisition last year. Our ability to develop new enzymes over time is further strengthened by the initiation of our novel enzyme screening project at the end of the quarter, for which we have received financial support from Vinnova. With continued good momentum in our product development activities, I look forward to more product launches in the second half of the year.
As part of our previously announced collaboration with Waters, we initiated and conducted several joint projects to develop and market new automated protein analysis workflows for our customers. Some of the new methods have already been presented at virtual conferences together with Waters and our joint activities will continue during the second half of the year. Industrial partnerships will continue to be a priority to strengthen our offering of simplified and automated analysis.
Although we are still experiencing delays and subdued customer activity due to the pandemic, we continue to deliver growth, which is highly satisfying. While the Covid-19 pandemic will likely continue to impact market conditions in the second half of the year, I am optimistic about Genovis’ growth potential over time.
Finally, I would like to thank all my colleagues at Genovis who are doing a fantastic job by helping our customers on a daily basis to access innovative products to develop the medicines of the future, which will result in continued growth.
Interim Report January – March 2021
• Net sales rose by 37 percent to SEK 15,723 (11,475) thousand. Organic growth was 21%.
• Gross profit was SEK 15,017 (10,977) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 1,958 (loss: 847) thousand.
• Operating profit totaled SEK 551 (loss: 1,889) thousand.
• Comprehensive income for the period totaled SEK 1,607 (loss: 1,915) thousand.
• Comprehensive income per share, basic and diluted, totaled SEK 0.02 (-0.03).
• Cash flow from operating activities was SEK 3,512 (-1,506) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 45,929 (61,641) thousand.
Significant events after the end of the quarter
In April, Genovis and Waters entered into a collaboration to develop efficient methods for biopharmaceutical characterization. The goal of the collaboration is to develop automated workflows for rapid and accurate characterization of critical quality attributes of monoclonal antibodies and other protein-based drugs for bioprocess development, formulation, stability testing and quality control (QC).
Comments from Fredrik Olsson, Chief Executive Officer
We begin 2021 by showing continued growth of 37% for the first quarter compared with the previous year. This means we have shown growth for 26 consecutive quarters (YoY). The first quarter, which is usually a weaker quarter for Genovis, began with subdued customer activity due to COVID-19-related restrictions, but we gradually saw an increase in activity in our main markets, the US and Europe, with Asia also showing continued strong growth.
Despite the sluggish start to the quarter, the core business for enzymes in Analytics shows organic growth of 21% year-on-year. The market for our antibody business in the US continued to be impacted by reduced general diagnostics and restrictions in the university setting due to the COVID-19 pandemic.
In April we announced a new partnership with Waters aimed at jointly developing and marketing common workflows for biochemical analysis of proteins and biopharmaceuticals. Waters has a strong position in the biopharma industries, especially within quality control. Waters’ clear strategy of developing robust and user-friendly analytical instruments lowers the threshold for implementing advanced protein analysis. This step paves the way for new users and new application areas in the development of biological drugs. The strategy and approach align perfectly with Genovis’ strategies and goals, so I look forward to combining our unique enzyme technology with Waters’ instruments to help our customers in their efforts to develop novel and safer therapeutics.
We will continue our efforts to establish more industrial partnerships to expand our business opportunities moving forward. I see more opportunities to strengthen our customer offering in antibody labelling, glycomics and automation, making complementary technologies and collaborations key components in our growth journey.
Our continued investments in product development are clearly reflected in our pipeline, which is strong and diversified in glycomics, automation and antibody labelling, but also in potential new application areas. This means we have laid a solid foundation for new business opportunities and continued growth moving forward. During the quarter, we expanded and strengthened our research, product development and production teams to take advantage of and implement new business opportunities.
In March, we learned that we received a grant of SEK 2 million from Vinnova for development of a new platform for identification and production of enzymes for protein analysis. The grant will include a dedicated research position and will be carried out in collaboration with the Department of Applied Microbiology at the Faculty of Engineering and the Department of Infectious Diseases at Lund University.
Although our markets continue to be impacted by uncertainty and restrictions for our customers in their work as a result of the pandemic, the increased vaccination rate will hopefully gradually improve conditions in 2021.
In conclusion, I would like to thank all of my colleagues at Genovis who have done a great job helping our customers every day to have access to the innovative products that continuously grow Genovis’ business.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: +46 (0)46 101233, email: fredrik.olsson@genovis.com
ABOUT GENOVIS
Genovis’business concept is to apply its knowledge and imagination to design and provide innovative tools for the development of the drugs of the future. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.
The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA). Genovis shares are listed on Nasdaq First North Growth Market and Erik Penser Bank is the Company’s Certified Adviser, certifiedadviser@penser.se, T: +46 (0)8 463 83 00.
Published reports can be downloaded from the Genovis website:
https://investor.genovis.com/en/financial-reports/
This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the contact person set out above, on April 29, 2021.
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.
Genovis Annual Report 2020 published
To read or download the annual report in Swedish, go to:
https://investor.genovis.com/wp-content/uploads/genovis-arsredovisning-2020.pdf
To read or download the annual report in English, go to:
https://investor.genovis.com/wp-content/uploads/genovis-annual-report-2020.pdf
Year-end Report January – December 2020
Report for the fourth quarter of 2020
October – December in brief
- Net sales totaled SEK 19,850 (12,830) thousand. Organic growth, adjusted for acquired sales, rose by 33% to SEK 17,102 thousand.
- Gross profit totaled SEK 19,761 (12,065) thousand.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 6,196 (492) thousand.
- Operating profit was SEK 4,604 (loss: -522) thousand.
- Comprehensive income was SEK 6,347 (loss: -895) thousand.
- Earnings per share, basic and diluted, totaled SEK 0.13 (-0.01).
- Cash flow from operating activities was SEK -672 (2,824) thousand.
- Cash and cash equivalents at the end of the period totaled SEK 44,118 (14,992) thousand.
- Genovis AB and Glykos Finland Oy have entered into a licensing and supply agreement for unique toxin and linker technologies to be combined with the site-specific marking technology for antibodies from Genovis.
January – December in brief
- Net sales totaled SEK 61,030 (60,549) thousand. Organic growth, adjusted for bioprocess and acquired sales, rose by 20% to SEK 53,329 thousand.
- Gross profit totaled SEK 59,370 (56,187) thousand.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 8,573 (13,563) thousand and was negatively impacted by non-recurring expenses for acquisitions and restructuring of SEK 2.6 million.
- Operating profit totaled SEK 3,140 (10,066) thousand.
- Comprehensive income was SEK 1,973 (9,549) thousand.
- Cash flow from operating activities was SEK 3,755 (2,824) thousand.
- Earnings per share, basic and diluted, totaled SEK 0.10 (0.15).
- During the year Genovis acquired all shares of QED Bioscience Inc. The total cost of the acquisition, including transaction costs, is SEK 20 million.
- In the first quarter Genovis raised SEK 50 million for the Company before issue expenses in a rights issue.
Comments from Fredrik Olsson, Chief Executive Officer
We ended a challenging year on a strong note. In the fourth quarter, growth in the core business for enzymes within Analytics was 23 percent and currency-adjusted growth was 33 percent. Growth in the fourth quarter was driven by a general increase in activity in our markets, along with several large individual orders.
We saw a recovery in customer activity in both North America and Europe at the beginning of the quarter. In Asia sales growth continued and some markets showed a return to a more normal level of market activity.
The antibody business in our subsidiary showed growth in the quarter compared with the corresponding period the previous year, driven in part by orders that were postponed from Q3 because of the pandemic. Parts of the antibody business continue to be impacted by the general reduction in diagnostics as a result of COVID-19.
We have completed our investments in our electronic sales and marketing system since we do not expect to be able to carry out physical marketing activities such as conferences and customer meetings until the second half of 2021 at the earliest. Our initiatives have resulted in the continued inflow of new customers, which is extremely encouraging.
We have periodically experienced challenges in various geographic markets as a result of local restrictions imposed by the authorities to limit the spread of infection. In many markets, operational work in our customers’ laboratories continued to be limited by COVID-19-related restrictions, which in turn negatively impacts our business. Postponements caused by challenges related to conducting clinical trials have entailed delays in some of our customers’ projects. My assessment is that access to vaccine and implementation of a hopefully successful vaccination program will determine the pace of recovery to a more normal market situation in 2021. Despite these challenges, revenue in our core business grew and the inflow of new customers resulted in continued growth in our customer base compared with the previous year.
Through our collaboration with Glykos at the end of the year we launched yet another product in our antibody labeling segment. GlyCLICK® ADC facilitates quick and simplified generation of antibody drug conjugates (ADC) in which Genovis’ labeling platform is combined with the latest generation of linker technology from Glykos. We are actively working to establish more industrial partnerships to further strengthen our product portfolio and broaden our customer offering to the biopharma industry. We will continue to focus on product development and we plan to launch several new enzyme products within analysis and antibody labeling during the first half of 2021.
At the end of the year, the second wave of the pandemic hit several of our key markets. Over the short term, once again there is growing uncertainty about what impact the reinstated restrictions will have on Genovis’ activities, especially in Europe and the US.
Despite the uncertainty about short-term market trends because of the pandemic, Genovis’ growth potential for the future remains intact. Because of the strong underlying driving forces for growth within several areas related to biological drugs and protein analysis, my fundamental outlook remains positive regarding our potential for continued strong growth over time.
I would like to close by thanking the Board of Directors and shareholders for their support and commitment over the past year. I would also like to warmly thank my colleagues at Genovis who have successfully handled a challenging year with great dedication, which has allowed us to enter 2021 with renewed vigor.
For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: +46 (0)46 101233, email: fredrik.olsson@genovis.com
ABOUT GENOVIS
Genovis’business concept is to apply its knowledge and imagination to design and provide innovative tools for the development of the drugs of the future. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.
The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA). Genovis shares are listed on Nasdaq First North Growth Market and Erik Penser Bank is the Company’s Certified Adviser, certifiedadviser@penser.se, T: +46 (0)8 463 83 00.
Published reports can be downloaded from the Genovis website:
https://investor.genovis.com/en/financial-reports/
This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the contact person set out above, on February 11, 2021.
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.
