Communiqué from Genovis AB (publ) Annual General Meeting May 23, 2019
- The balance sheet and income statement were adopted.
- The Board and the Chief Executive Officer were discharged from liability.
- The Board shall consist until the next AGM of six ordinary members without deputies.
- Ordinary members Kenth Petersson, Mikael Lönn, Lena Söderström, Peter Heinand Mårten Winge were re-elected. Lotta Ljungqvist and Håkan Wickholmwas elected new Board members.Mårten Winge was elected Chairperson of the Board.
- Remuneration will be paid to the Board of Directors in the amount of SEK 100,000 to Board members and SEK 200,000 to the Chairperson of the Board.
- Remuneration to the auditors will be paid on account.
- A Nomination Committee will be formed with representatives of the four largest shareholders at September 30, 2019.
- Guidelines for remuneration to the Chief Executive Officer and other senior executives were adopted in accordance with the Board’s proposal.
- The AGM resolved on the authorization to issue shares with or without preferential rights for existing shareholders. As a result of this resolution, share capital could increase by a maximum of SEK 1,575,000 through the issuance of a maximum of 6,300,000shares.
Genovis signs distribution agreement with FUJIFILM Wako Pure Chemical for Japan, Taiwan and Singapore markets
FUJIFILM Wako Pure Chemical is well established in these markets, with more than 1500 employees involved in the production and distribution of laboratory chemicals, specialty chemicals and clinical diagnostic reagents. Using the local languages, a dedicated team of specialists from FUJIFILM Wako Pure Chemical will distribute and market Genovis’ products. Genovis SmartEnzymes are a good fit with the products offered by FUJIFILM Wako Pure Chemical, which has well-developed sales channels to research and analytical development departments at top biopharmaceutical companies.
“By collaborating with FUJIFILM Wako Pure Chemical, we gain an experienced partner with an established presence as a supplier to the biopharma industry. The company is extremely familiar with the enzymatic reagent market for research, development and quality control. Given its aspirations as a contract manufacturing organization, we see excellent opportunities to build a fruitful and long-lasting partnership with FUJIFILM Wako Pure Chemical.” says Fredrik Olsson, CEO, Genovis.
FUJIFILM Wako Pure Chemical develops and produces high-quality reagents to address the needs of its customers. The company has a longstanding, mature network of dealers and representatives serving pharma and biopharma industry customers in Japan. In addition, FUJIFILM Wako Pure Chemical has local representatives covering the and Taiwan and Singapore markets, where Genovis’ products will now also be represented.
“The biopharmaceutical market is growing in Japan, especially the antibody-based drugs. Genovis offers unique and useful products for antibody drug development that meet customer needs. Our collaboration with Genovis to promote their products in our sales network in Japan, Taiwan and Singapore will lead to successful business growth for both companies,” says Hiroyuki Ito,GeneralManager, Life Science Development Operations.
ABOUT FUJIFILM Wako Pure Chemical
FUJIFILM Wako Pure Chemical develops and produces high-quality reagents to address research needs in cutting-edge fields, with extensive business in the fields of Specialty Chemicals and Clinical Diagnostics Reagents, as well as Laboratory Chemicals. Based on the corporate philosophy “With commitment to the future of science, the company is dedicated to create the source of happiness for all people”, FUJIFILM Wako Pure Chemical will contribute to development in the fields of academic research, industry and medicine.
Principal shareholder of Genovis reduced his holdings
In a comment to the company Lönn says:
“I have followed Genovis since 2011 and am pleased to say that the performance of the company has been outstanding in recent times. I expect that this favorable trend will continue and I plan to continue to my commitment to ownership, even though I am now selling a portion of my holdings for personal reasons.”
Interim Report January – March 2019
· Net sales rose by about 91 percent to SEK 11,931 (6,246) thousand.
· Operating profit/loss before depreciation and amortization (EBITDA) totaled SEK 2,695 (loss: 16) thousand.
· Operating profit/loss improved by SEK 3,310 thousand to SEK 1,942 (loss: 1,368) thousand.
· Comprehensive income for the quarter improved by SEK 2,987 thousand and totaled 1,591 (loss: 1,396) thousand.
· Comprehensive income per share, basic and diluted, improved by SEK 0.05 to SEK 0.03 (-0.02).
· Cash flow from operating activities was SEK 2,709 (loss: 2,024) thousand.
Significant events after the end of the quarter
Genovis signed a collaboration agreement with Thermo Fisher Scientific for the development of new methods for automatic sample handling and analysis of biopharmaceuticals based on chromatographic and mass spectrometric analytical methods (LC-MS). The purpose of the collaboration is to develop advanced work flows from start to finish for complex biological drug molecules in order to meet the growing need for effective, fast and simplified quality analyses.
Comments from Fredrik Olsson, Chief Executive Officer
We began 2019 with strong sales growth. Net sales surged in the first quarter by about 91 percent compared with the corresponding period in 2018. Currency effects had a favorable impact on growth for the quarter and corrected for this, organic growth is clearly robust at 73%. Our sales over a rolling 12-month period now passed SEK 40 million. Operating earnings continued to improve significantly compared with the same period the previous year and it is particularly satisfying that we have now achieved an operating profit for three consecutive quarters.
Growth during the first quarter was generated broadly across the product portfolio which, along with one large order of about SEK 2 million during the period, contributed to the accelerated growth. The area of application for this order is outside our current main market in quality analysis of biopharmaceuticals and relates to an evaluation study at a global biopharmaceutical company using one of our existing enzyme products.
During the quarter, we continued to work on product development with an extra emphasis on automated analysis strategies for the biopharma industry. Our efforts culminated in our first collaboration agreement with Thermo Fisher Scientific, which was announced at the beginning of the second quarter. With its substantial marketing capacity and hardware expertise, partnering with Thermo Fisher will enable us to develop new products and work flows to meet the growing demand for simpler, more efficient quality analysis of biopharmaceuticals. We will also look for opportunities to collaborate with selected key customers who have clear ambitions to automate their analytical workflows. Our aspiration is to further refine and adapt products for automated quality analysis, both from our current product portfolio and using newly developed enzyme solutions, in close cooperation with world-leading biopharma customers.
The period has also been characterized by intensive efforts to find new partners for sales in prioritized geographic markets in Asia. I can conclude that this effort has been successful and that we will likely soon be able to handle sales in additional markets.
We continued to invest in our production capacity during the period. This spring we will further intensify these efforts when we move to a modern production facility in newly renovated premises. Over the next few quarters, we will continue to invest in our production facility to meet an expected increase in demand for our current product portfolio, as well as to strengthen our capacity for future product launches. These investments are laying the foundation for scaling up and broadening our operation in the long term to meet market needs and to enable agile production at Genovis in the future.
In summary, 2019 is off to a great start throughout our operations and I look forward to continued growth and improvement in our business going forward. It is particularly gratifying that for the first time, we have now been operating at a profit over a twelve-month period. With our current initiatives based on reinvestment of our surplus in the business, I look forward to our continued growth journey at Genovis along with my colleagues, with a focus on building value for customers, employees and shareholders.
NOTICE OF ANNUAL GENERAL MEETING IN GENOVIS AB
4:30 p.m. – 4:50 p.m. Registration 5:00 pm Annual General Meeting convened
Right to participate. Registration
Shareholders who are registered in the register of shareholders maintained by Euroclear Sweden AB on May 17, 2019 and who have notified the company of their intention to attend the Annual General Meeting by no later than May 17, 2019, preferably before 3:00 p.m., have the right to attend the Annual General Meeting. Notification may be made by mail at Genovis AB (publ), Box 790, S-220 07 Lund, Sweden, by phone +46 (0)46-10 12 30, by fax +46 (0)46-12 80 20 or by email: info@genovis.com. Upon notification, shareholders must provide their name/company name, personal identity number/corporate identity number, address and phone number. Information about the number of assistants (maximum two) that the shareholder intends to bring to the meeting should also be included.
Shareholders who are represented by proxy shall issue a written, signed and dated power of attorney for the proxy. Shareholders should submit the power of attorney together with the notification of their intention to participate at the AGM. The expiry date of the proxy document may be no more than five years from its issue. Proxy forms are available on the company’s website, www.genovis.com. Representatives of legal entities must present a copy of the certificate of registration or equivalent authorization documents showing the authorized signatory.
Shareholders whose shares are registered in the name of a nominee must, in order to be entitled to attend the meeting, request that their nominee re-register their shares in their own name, so that the shareholder is registered in the shareholder register on May 17, 2019. Such registration may be temporary.
Proposed Agenda
1. Opening of the Meeting.
2. Election of Chairman of the Meeting.
3. Preparation and approval of voting list.
4. Approval of the agenda
5. Election of individuals to verify the minutes.
6. Consideration of whether the meeting had been duly convened.
7. Presentation of the annual report and audit report, as well as the consolidated accounts and audit report for the Group.
8. Speech by the Chief Executive Officer, after which shareholders will have the opportunity to ask questions of the CEO, the Chairman of the Board and the auditor.
9. Resolutions on:
a. adoption of the Income Statement and the Balance Sheet, as well as the Consolidated Income Statement and the Consolidated Balance Sheet,
b. allocation of the Company’s result in accordance with the adopted balance sheet,
c. discharge from liability to the company of the Directors and the Chief Executive Officer.
10. Resolution regarding number members of the Board and deputy members.
11. Resolution regarding from directors’ fees.
12. Election of Directors and Chairman of the Board.
13. Resolution on fees to auditors.
14. Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee
15. Resolution on the Board of Directors’ proposal for remuneration guidelines for senior executives.
16. Resolution authorizing the Board of Directors to decide on the issuance of shares.
17. Authorization of the Chief Executive Officer to make such formal adjustments to the resolutions as may be necessary in conjunction with registration and implementation thereof.
18. Adjournment.
Item 2 Proposal to chair the meeting
The Nomination Committee proposes that attorney Arne Källén chair the meeting.
Item 10. Resolution regarding number of Board members and deputy members
The Nomination Committee proposes that the Board shall consist of seven members without deputies.
Item 11. Resolution regarding fees for Board members
The Nomination Committee proposes that the fees until the next Annual General Meeting shall be paid in the amount of SEK 100,000 for each director who is not employed by the company and SEK 200,000 to the Chairperson.
Item 12 Election of Directors and Chairman of the Board.
The Nomination Committee proposes re-election of: Mikael Lönn, Kenth Petersson, Mårten Winge, Lena Söderström and Peter Hein, and new election of Lotta Ljungqvist and Håkan Wickholm.
Lena Mårtensson Wernrud has declined re-election.
The Nomination Committee proposes re-election of Mårten Winge to serve as Chairman of the Board.
Item 13 Resolution on fees to auditors
The Nomination Committee proposes that remuneration to the auditors shall be paid on account.
Item 14 Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee
The Nomination Committee proposes that the Committee for the 2020 AGM will consist of representatives of the four largest shareholders as of September 30, 2019. The Nomination Committee shall appoint a chairman from among its members. It is incumbent upon the Chairman of the Board to convene the Nomination Committee. Should a shareholder decline to participate on the Nomination Committee, the right to appoint a representative shall be transferred to the next largest shareholder not represented in the committee. If deemed appropriate as a result of ownership changes, the Nomination Committee shall invite additional shareholders to join the Nomination Committee, though the total number of members may not exceed five. In the event a member of the Nomination Committee leaves the Committee before its work is completed, the Chairman of the Board, if the Nomination Committee deems necessary, shall invite the same shareholder or, if the latter is no longer one of the major shareholders, the shareholder next entitled, in terms of size of shareholding, to appoint a replacement. Such a change shall be announced on the company’s website.
The Nomination Committee will prepare proposals for the 2020 Annual General Meeting for resolution as regards chairman at the meeting, Chairman of the Board and other directors, remuneration of directors and auditors, and principles for appointing the Nomination Committee. The Nomination Committee mandate runs until a new committee is appointed.
The Nomination Committee proposes that remuneration will only be paid for direct costs associated with the assignment.
Item 15 The Board of Directors’ proposal for a motion regarding remuneration guidelines for senior executives
The Board of Directors proposes that the AGM adopts the following guidelines for remuneration to the Chief Executive Officer. These guidelines are valid for employment agreements entered into after the guidelines are approved by the AGM, and for amendments made afterward to existing employment agreements. The basic principle is that remuneration and other terms of employment for the CEO will be competitive.
Fixed remuneration policy
The fixed remuneration to the Chief Executive Officer should be competitive and be based on the complexity of the business and the performance of the CEO.
Variable remuneration policy
Incentive-based remuneration will be limited and linked to predetermined measurable criteria designed to promote long-term value creation for the Company. Variable compensation may not exceed a maximum of 25% percent of the fixed salary and will be set per fiscal year.
The Board will consider on a yearly basis whether or not to propose a share-related or market value-related incentive program to the Annual General Meeting. The Annual General Meeting makes the decisions regarding such incentive programs.
Conditions for non-monetary benefits, pensions, termination, and severance pay
Pensions
Management and the CEO are entitled to a defined-contribution pension.
Termination and severance pay
For the CEO the notice period is 6 months for the company and 6 months for the individual. Moreover, the CEO may be offered 12 months of severance pay.
The Board of Directors may depart from these guidelines if there are particular reasons in an individual case.
The Company’s undertaking in relation to the CEO may amount to a maximum of SEK 3,129,803.
Item 16 The Board’s proposal authorizing the Board of Directors to decide on the issuance of shares.
The Board proposes that the Meeting authorize the Board, on one or more occasions until the next annual meeting, with or without preferential rights for shareholders, to issue new shares, convertible bonds or warrants. New shares may be paid for in cash and/or in kind or set-off or on other terms. This decision would mean that the share capital is increased up to a maximum total of SEK 1,575,000 through the issuance of a maximum total of 6,300,000 shares at full subscription. When deciding on issuances without preferential rights for shareholders, the subscription shall be market-based at the time of the issue resolution.
The reason for the possible deviation from shareholders’ preferential rights is to broaden the ownership group, acquire, or facilitate the raising of capital, increase the liquidity of shares, carry out acquisitions, or procure or permit the raising of capital for acquisitions.
For a valid resolution under this item, the Meeting’s resolution must be supported by shareholders representing at least two thirds of both the voting rights and the shares represented at the Meeting.
Documents
The annual report, audit report, articles of association, proxy forms, and other proposals will be available at the Company’s office at Scheelevägen 2, Box 790, S-220 07 Lund, Sweden, and on the Company’s website www.genovis.com as of May 2, 2019, and will be sent, upon request, to shareholders who provide their mailing address.
Number of shares and votes
At the time of issuance of this notice, the total number of shares and votes in the company is 63,100,000.
Information at the Annual General Meeting
Shareholders are reminded of their right to request information from the Board of Directors and the Chief Executive Officer pursuant to Chapter 7, sections 32 and 57 of the Swedish Companies Act.
Lund, April 2019
Genovis AB (publ.)
Board of Directors
Proposal to expand the Genovis Board of Directors at 2019 Annual General Meeting
Lotta Ljungqvist is CEO of GE Nordics and the Testa Center in Uppsala. She is the former CEO of IMED AB and global head of BioProcess R&D at GEHC Life Science. She has also held several project management positions at Pharmacia Corp & Pharmacia & Upjohn. Lotta sits on the Board of Directors for Vinnova, SwedenBIO, AmCham Sweden and Atlas Antibodies AB.
Håkan Wickholmhas his own consultancy firm. He has 30 years of experience from senior positions in international pharmaceutical and biotechnology companies. Håkan has worked as Chief Business Officer (CBO) and CEO of Lytix Biopharma, as well as in various management positions for AstraZeneca, from which he gained strong international experience in strategy formulation, business development and commercialization.
“We are extremely pleased to be able to propose that the AGM bring on two such experienced and knowledgeable individuals to the Genovis Board of Directors. The company is in a dynamic phase and exciting new challenges lie ahead. We consider this proposal for two candidates with skills that complement and reinforce the Board to be extremely valuable,” says Mikael Lönn, chairman of the Nomination Committee.
The new Board of Directors in the proposal to the Annual General Meeting is as follows: Re-election of Mårten Winge, Kenth Petersson,Lena Söderström, Peter Hein and Mikael Lönn, and new election of Lotta Ljungqvist and Håkan Wickholm.
Lena Mårtensson Wernrud has declined re-election.
The Nomination Committee proposes re-election of Mårten Winge to serve as Chairman of the Board.
Genovis and Thermo Fisher Scientific Announces Collaboration to Advance Biopharmaceutical Characterization and Monitoring Workflows
Bringing together Genovis advanced enzyme-based sample preparation and analysis techniques with Thermo Fisher’s leading LC-MS technology, the collaboration will develop robust automation-ready solutions and chromatography-based workflows for the streamlined analysis of biotherapeutics. Scientist at Genovis will work together with Expertise from Thermo Fisher’s Global Customer Solution Centerswill also help to determine optimal hardware/software configurations and suitable consumables for critical quality attribute (CQA) analysis of biotherapeutics during research and development.
“We are excited to continue our clear ambition towards more automated analytical workflows together with Thermo Fisher Scientific, a renowned world leader in serving science with instrumentation, technologies and consumables. Through this collaboration we will be able to develop new products and workflows on world-class instrumentation together with experts from the European Biopharma Customer Solutions Centre at Thermo Fisher, with the goal to serve the customers of both companies with innovations for the ever-growing analytical needs within the biopharma industry,” says Fredrik Olsson CEO at Genovis.
“With the shift towards large biological entities, companies are aiming to bring to market medicines with greater affinity and efficacy, but these also present an additional level of analytical complexity,” said John Rontree, senior director, global marketing and strategy, pharmaceuticals & biopharmaceuticals, Thermo Fisher Scientific. “By collaborating with Genovis, we aim to develop comprehensive workflows that provide robust and advanced solutions for preparing and assessing complex biotherapeutics, supporting the research and development of safe and effective medicines.
By combining the SmartEnzyme™ technology from Genovis with Thermo Scientific Vanquish Duo UHPLC Systems (with Dual LC workflow) and the Thermo Scientific Chromeleon Chromatography Data System (CDS) Software the collaboration aims to develop:
- LC-MS-based protocols for O-glycosylation profiling of biosimilars against their originators; and
- Automated high-throughput workflows for Critical quality Attributes (CQA) analysis of monoclonal antibodies at the subunit level, using a combination of automation, chromatography and high-resolution mass spectrometry.
Year-end Report January – December 2018
· Net sales rose by about 51 percent to SEK 10,537k (6,974k).
· Gross profit for the periodimproved by SEK 4,013k to SEK 10,956k (6,943k).
· Operating profit/loss before depreciation and amortization (EBITDA)* totaled SEK 2,954 (loss: 574k).
· Operating profit/loss improved by SEK 3,056k and totaled SEK 1,912k (loss: 1,144k).
· Comprehensive income for the periodimproved by SEK 2,542k to SEK 1,285k (loss: 1,257k).
· Comprehensive income per share**, basic and diluted, totaled SEK 0.02 (-0.02).
· Cash flow from operating activities was a loss of SEK 235k (loss: 1,436k).
· Genovis was certified to ISO 9001:2015. Quality certification means that the management system meets the requirements imposed by International Standard ISO 9001:2015. The certification covers product development, production and sales.
The full year in summary
· Net sales rose by about 51 percent to SEK 34,568k (22,867k).
· Gross profit improved by SEK 11,975k to SEK 33,816k (21,841k).
· Operating profit/loss before depreciation and amortization (EBITDA)* totaled SEK 4,091k (loss: 6,226k).
· Operating profit/lossimproved by SEK 6,875 to a loss of SEK 960k (loss: 7,835k).
· Comprehensive income for the full year improved by SEK 6,552k to a loss of SEK 1,560k (loss: 8,112k).
· Comprehensive income per share**, basic and diluted, improved by SEK 0.11 to SEK -0.03 (-0.14).
· Cash flow from operating activities was a loss of SEK1,250k, (loss: 8,355k).
* Genovis has chosen to apply IFRS 16 in advance, as well as the simplification rule regarding short-term leases. Consequently, this will not have any effect on the figures reported for 2017. Costs for rent and leases are therefore recognized under depreciation and amortization and beginning in 2018 will not affect EBITDA for the Group. Readmore under accounting policies, page 12.
** Earnings per share is calculated by dividing comprehensive income by the weighted average number of shares during the year. There is no dilution effect.
Comments from Fredrik Olsson, Chief Executive Officer
We ended an extremely successful 2018 with our best quarter ever in terms of both sales and profit. Sales jumped 51 percent compared with the same quarter last year and adjusted for currency effects, organic sales growth was 41 percent.
For the second consecutive quarter we can report an operating profit – in the fourth quarter it hit SEK 1.9 million, which gives an operating margin of 18 percent. Operating profit improved significantly both year on year and quarter on quarter.
We see growth in both the quarter and the full year in all main geographic markets – North America, Europe and Asia – and the percentage increase in sales is broadly distributed across the entire product portfolio.
Sales for the full year reached SEK 34.5 million, which represents growth of about 51 percent compared with 2017. We have achieved strong and steady growth for four consecutive years as a result of our dedicated hard work following clear strategies for productdevelopment, production, support and marketing.
The substantial improvement in our operating profit compared with the previous year clearly confirms that our business model delivers. In 2018 we laid the foundation for the future expansion of Genovis.
Our focus on enzymes for glycan analysis has demonstrated clear value in both academic and industrial applications. In particular, the considerable attention received by scientific publications from the FDA and Johns Hopkins University indicates the value of the products in research. We will continue our product development within glycan analysis moving forward in order to offer products that both improve and simplify the efforts of our customers to develop new and better drugs.
An important milestone for the year was the certification of our operations in compliance with ISO 9001:2015. The work with quality certification has been extensive and was carried out at the same time as our new product launches and the expansion of both production and the marketing organization.
As I look ahead to 2019, I see several exciting new business opportunities that can contribute to the continued development of Genovis. With a strong 2018 behind us, we will focus our product development on new enzymes, as well as on added-value products from our current enzyme base. One example is FabRICATOR-HPLC, which we launched during the autumn. Refining and adapting products for automated analysis systems is an important aspect for solving the challenges our customers in the biopharma industry need to address moving forward – with increasing requirements for productivity and product safety. Closer collaboration with leading suppliers of instruments and technology is crucial if we are to make quick progress in this area, for which reason it will be the focus of our efforts during the year.
In summary, 2018 was a breakthrough year for Genovis and confirmation that our agile and customer-focused organization continues to build value for customers, employees and shareholders.
I would like to thank our shareholders and the Board of Directors for their support and dedication during the year. At the same time, I would like to warmly thank my colleagues for their wonderful contributions during 2018 which have enabled Genovis to make major advances in its development.
We expect continued sales growth in early 2019 and I look forward with great excitement and dedication to our continued journey at Genovis.
Interim Report January – September 2018
· Net sales rose by about 74 percent to SEK 9,206k (5,286k).
· Operating profit before depreciation and amortization (EBITDA)* totaled SEK 1,747k (loss: 1,299k).
· Comprehensive income for the period improved by SEK 1,983k to a profit of SEK 342k (loss: 1,641k).
· Comprehensive income per share, basic and diluted, improved by SEK 0.04 to SEK 0.01 (-0.03).
· Genovis expanded its sales and marketing organization at its Lund headquarters and hired Rob Horsefield as Sales & Business Development Manager.
· Genovis launched FabRICATOR®-HPLC for quality analysis of antibodies in automated analysis systems. The product is based on Genovis’ FabRICATOR technology and can be used in current analysis systems for rapid analysis without manual sample handling.
January – September in brief
· Net sales rose by about 51 percent to SEK 24,031k (15,893k).
· Comprehensive income for the period improved by SEK 7,959k to SEK 22,858k (14,899k).
· Operating profit/loss improved by SEK 3,816k to a loss of SEK 2,874 (loss: 6,690k).
· Comprehensive income for the period improved by SEK 4,010k to a loss of SEK 2,846k (loss: 6,856k).
· Comprehensive income per share, basic and diluted, improved by SEK 0.07 to SEK -0.05 (-0.12).
Events after the end of the period
Genovis became certified to ISO 9001:2015 Quality certification means that the management system meets the requirements imposed by International Standard ISO 9001:2015. The certification covers product development, production and sales.
By designing a quality management system with a strong customer focus in which all processes and procedures are meticulously formulated and quality-tested in compliance with the international standard, Genovis ensures that it continues to deliver products and provide services that meet market demands.
* Genovis has chosen to apply IFRS 16 in advance, as well as the simplification rule regarding short-term leases. Consequently, this will not have any effect on the figures reported for 2017. Costs for rent and leases are therefore recognized under depreciation and amortization and beginning in 2018 will not affect EBITDA for the Group
Comments from Fredrik Olsson, Chief Executive Officer
Continued strong sales growth in the third quarter
Sales growth in the third quarter was strong, 74 percent, and was positively impacted by currency effects. Currency adjusted organic growth was approximately 60 percent.
In the third quarter we reached a milestone in our growth journey – for the first time, we can report a profit and positive cash flow from operating activities in a single quarter. For the nine-month period we see growth throughout the product portfolio and in all geographic markets – North America, Europe and Asia. Our goal of having partners in key markets in Asia in the near future remains unchanged.
Sales growth of products launched over the past two years continues to be strong, both for Biopharma, our main market, and the early research applications in industry and academia. Our customers have appreciated our strategy of offering new products that improve and simplify analytical methods for O-glycans, which is reflected in the growth of this product segment.
During the quarter we launched FabRICATOR-HPLC as a “value-added” product intended to establish a stronger link between our FabRICATOR enzyme and automated analyses for process development and production of antibody-based drugs. Sales began at the time of the launch and I believe that revenue, as with any new product, will be limited during the introductory phase, but will gain momentum over time as the product is validated and evaluated by the market.
Growth and earnings in the third quarter are of course encouraging and an acknowledgement that our strategy is working well. At the same time, it is important that we continue to focus on the top half of the income statement. Genovis is a growth company with good momentum and this positive trend will pave the way for new opportunities.
We see continuation of a favorable growth trend at the beginning of the fourth quarter. The continued underlying demand for enzymes and new analytical tools in our main markets of biopharmaceuticals and protein analysis provide a firm footing from which to view future developments at Genovis with great confidence.
Genovis certified to ISO 9001:2015
By designing a quality management system with a strong customer focus in which all processes and procedures are meticulously formulated and quality-tested in compliance with the international standard, Genovis ensures that it continues to deliver products and provide services that meet market demands.
“Certifying our quality management system to ISO 9001:2015 is an important step to further establish Genovis as a reliable supplier to the global biopharma industry. For our continued growth journey, the certification will be of significance as our customers increasingly use our products further down the value chain for quality analysis of biopharmaceuticals. The certification is the result of a prioritized, continually ongoing systematic effort that enables us to offer high-value products to our customers,” says Fredrik Olsson, CEO of Genovis.
