Genovis AB publishes Annual Report 2024
Genovis’ Annual Report 2024 is as of today available at www.genovis.com
NOTICE OF ANNUAL GENERAL MEETING OF GENOVIS AB (PUBL)
The shareholders of Genovis AB (publ), reg.no. 556574-5345, with its registered office in Kävlinge kommun, Skåne län, are hereby summoned to the Annual General Meeting, to be held on Wednesday, 21 May 2025, at 17.00 p.m., at Genovis AB’s office, Karl Johans väg 104, Kävlinge.
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 Tuesday May 13, 2025, and who have notified the company of their intention to attend the Annual General Meeting by no later than on Thursday May 15, 2025, preferably before 3:00 p.m., have the right to attend the Annual General Meeting. Notification may be made by mail at Genovis AB c/o Advokatfirman Källén AB, Stora Tomegatan 5, 223 51 Lund, or per e-mail: arne@advkallen.se.. 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 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 Tuesday May 13, 2025. Such registration may be temporary (so-called “voting right registration”) and is requested from the nominee in accordance with the nominee’s procedures at such time in advance as determined by the nominee. Voting rights registration that has been made by the nominee not later than Thursday, May 15, 2025 will be taken into account in the preparation of the share register.
Proxy
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, https://investor.genovis.com/en/corporate-governance/general-meeting/.
Representatives of legal entities must present a copy of the certificate of registration or equivalent authorization documents showing the authorized signatory.
Proposed Agenda
- Opening of the Meeting.
- Election of Chairman of the Meeting.
- Preparation and approval of voting list.
- Approval of the agenda.
- Election of individuals to verify the minutes.
- Consideration of whether the meeting had been duly convened.
- Speech by the Chief Executive Officer.
- Presentation of the annual report and the consolidated accounts as well as the audit report.
- Resolutions on:
- approval of the Income Statement and the Balance Sheet, as well as the Consolidated Income Statement and the Consolidated Balance Sheet,
- allocation of the Company’s result in accordance with the approved balance sheet,
- discharge from liability the Board members and the Chief Executive Officer.
- Resolution regarding number members of the Board and deputy members to be elected by the Annual General Meeting.
- Resolution regarding fees payable to the Board of Directors.
- Election of Board members and Chairman of the Board.
- Resolution on fees payable to the auditors.
- Election of auditor.
- Resolution on the Nomination Committee
- Resolution authorizing the Board of Directors to issue shares.
- 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.
- Adjournment.
Item 2. Election of Chairman of 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 five members without deputies.
Item 11 Determination of fees for members of the Board of Directors
The Nomination Committee proposes that fees until the close of the next Annual General Meeting shall be paid in the amount of SEK 230,000 to each Board member who is not employed by the company and SEK 575,000 to the Chairman of the Board.
Item 12. Election of Directors and Chairman of the Board.
The Nomination Committee proposes:
Re-election of Board members Torben Jørgensen, Mikael Lönn, Steve Jordan, Magnus Gustafsson and Lotta Ljungqvist.
Re-election of Torben Jørgensen 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 approved account.
Item 14 Election of auditor
The Nomination Committee proposes re-election of registered auditing firm Öhrlings PricewaterhouseCoopers AB (“PWC”). PWC has announced that in the event that PWC is elected, Neda Feher will be appointed auditor in charge.
Item 15 Resolution on the Nomination Committee
The Nomination Committee proposes that the Committee for the 2026 AGM will consist of representatives of the four largest shareholders as of September 30, 2025. 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 2026 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 16 The Board’s proposal authorizing the Board of Directors to issue shares.
The Board proposes that the Meeting authorize the Board, on one or more occasions until the next Annual General 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 could be increased up to a maximum total of SEK 1,625,000 through the issuance of a maximum total of 6,500,000 new shares. 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 working 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 form and the other proposals for motions will be available at the Company’s office at Karl Johans väg 104, Kävlinge, and on the Company’s website www.genovis.com as of April 29, 2025, 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
65,465,714.
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. A request for such information shall be submitted in writing to Genovis AB, Attn: Legal, Box 4, 244 21 Kävlinge, Sweden or by e-mail to: legal@genovis.com. The information must be sent to the shareholder who has requested it and be kept available in writing at the company and on the company’s website no later than May 15, 2025.
Lund, April 2025
Genovis AB (publ)
Board of Directors
This is an unauthorized translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.
Strong momentum: 21% growth in enzyme business and significant improvement in earnings
October – December 2024
- Net sales totaled SEK 27,936 (23,118)* thousand, with a growth rate of 21%, including when adjusted for currency effects. Net sales, including the divested Antibody Business, totaled SEK 27,936 (27,306)** thousand.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 7,771 (3,615) thousand. EBITDA for the enzyme business (excluding the antibody business) totaled SEK 7,771 (3,550) thousand.
- Operating profit (EBIT) totaled SEK 5,329 (355) thousand. EBIT for the enzyme business (excluding the antibody business) totaled SEK 5,329 (953) thousand.
- Profit/loss for the period totaled SEK 4,587 (-422) thousand.
- Earnings per share*** totaled SEK 0.07 (-0.01).
- Comprehensive income for the period totaled SEK 5,777 (-80) thousand.
- Cash flow from operating activities was SEK 18,598 (9,868) thousand.
- Cash and cash equivalents at the end of the period totaled SEK 169,442 (123,261) thousand.
January – December 2024
- Genovis completed the strategic acquisition of a 25% stake in Sequrna AB.
- Genovis completed the successful strategic sale of the antibody business to Leinco Technologies Inc.
- Net sales for the Enzyme Business (excluding the divested Antibody Business) totaled SEK 120,368 (138,639) thousand. Growth for the Enzyme Business adjusted for license revenue is 14%, including when adjusted for currency effects. Net Sales, including the divested Antibody Business, totaled 130,358 (158,232) with a decline of -18%. Adjusted for currency effects, the decrease is -17%.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 56,178 (63,946) thousand. EBITDA for the enzyme business (excluding the antibody business) adjusted for license revenue and related costs totaled SEK 30,688 (22,870) thousand.
- Operating profit (EBIT) totaled SEK 45,732 (54,224) thousand. EBIT for the enzyme business (excluding the antibody business) adjusted for license revenue and related costs totaled SEK 21,946 (15,802) thousand.
- Profit for the period totaled SEK 32,916 (61,500) thousand.
- Earnings per share*** totaled SEK 0.50 (0.94).
- Comprehensive income for the period totaled SEK 37,162 (65,158) thousand.
- Cash flow from operating activities was SEK 37,116 (67,752) thousand. Adjusted cash flow from operating activities excluding the divestment of the antibody business was SEK 41,330 thousand.
*Previous year excluding the divested antibody business. The antibody business was divested on August 19, 2024.
** Previous year including the divested antibody business
***Earnings per share are calculated by dividing profit by the weighted average number of shares during the year. There is no dilutive effect.
Comments from Fredrik Olsson, Chief Executive Officer
We end the year with strong organic sales growth in our enzyme business of 21%. At the same time, we show a strong improvement in operating profit compared with the corresponding quarter last year. The operating margin at the EBITDA level improved from 13% to almost 28% in the fourth quarter. The improvement is primarily driven by increased sales and reduced costs following the sale of the antibody business.
Looking back at 2024, I can say that we achieved our best performance to date in our enzyme business, adjusted for license revenue. We achieved a 14% sales increase despite challenges in our end markets, related to venture capital availability and shifting priorities within our customers’ projects. Increased sales in the enzyme business (excluding license revenue), combined with effective cost control, have resulted in a 34% improvement in EBIDA for the enzyme segment compared to 2023.
In the fourth quarter, sales growth was relatively evenly distributed across all key geographic markets in North America, Europe and Asia. The trend of gradual improvement in China continued throughout the fourth quarter. In the final quarter of the year, we saw sustained strong customer activity and sales growth for our antibody conjugation and ADC offerings, continuing the positive trend we experienced over the year.
During the year we substantially broadened our enzyme offering for potential therapeutic applications, which include Xork and other novel enzymes, to provide treatment options for patients who cannot undergo AAV-based gene therapy. Discussions with potential partners in the final quarter confirmed the interest in our technology platform.
At the end of the year, we launched Sequrna RNAse inhibitor. Effective protection of fragile RNA from degradation during analytical and manufacturing workflows is critical for ensuring reliable and reproducible results. Our partnership with Sequrna and their unique RNAse inhibitor enables us to expand into new markets, where RNA sequencing is expected to become an increasingly useful tool in both basic research and diagnostics. Furthermore, we see several potential applications related to emerging clinical RNA-based technologies, such as mRNA.
The final quarter of the year showed a strong cash flow from operating activities. Our financial position is robust, with an improved cash position during the year, mainly driven by strong operating cash flows. Our strong cash position ensures financial stability while providing the flexibility to invest to invest for the future and I have a positive outlook on our future growth opportunities. While geopolitical factors and macroeconomic uncertainty remain in the near term, I see sustained long-term growth in our markets for the development of tomorrow’s medicines.
Despite a challenging market environment, especially during the first half of the year, we are closing the year with solid momentum. With our expanding portfolio and promising pipeline of innovative solutions for our growing customer base, I look forward to further strengthening and advancing Genovis’ business together with my colleagues in 2025. I would like to conclude by extending my heartfelt thanks to all our dedicated colleagues at Genovis for their outstanding efforts throughout 2024.
Genovis AB: Interim Report January-September 2024
Our Best Quarter in the Enzyme Business: Strong Growth and improved profitability
July – September 2024
- Genovis executed a strategic acquisition of a 25% stake in Sequrna AB
- Genovis successfully completed a strategic divestment of its Antibody Business to Leinco Technologies Inc.
- Net sales totaled SEK 32,895 (30,186) thousand, with a growth rate of 9%. Adjusted for currency effects, the growth was 13%. Net sales for the enzyme business (excluding the antibody business) amounted to SEK 31,625 (25,426) thousand, reflecting a 24% growth, or 28% when adjusted for currency effects.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 24,566 (7,555). EBITDA for the enzyme business (excluding the antibody business) amounted to SEK 10,828 (6,801) thousand.
- Operating profit (EBIT) totaled SEK 22,054 (4 488) thousand. EBIT for the enzyme business (excluding the antibody business) amounted to SEK 8,545 (4,405) thousand.
- Profit for the period totaled SEK 13,798 (3,138) thousand.
- Earnings per share totaled SEK 0.21 (0.05).
- Comprehensive income for the period totaled SEK 14,570 (4,051) thousand.
- Cash flow from operating activities was SEK 723 (9,611) thousand. Adjusted cash flow from operating activities excluding the antibody business was 4,937 thousand.
- Cash and cash equivalents at the end of the period totaled SEK 155,534 (119,131) thousand.
January – September 2024
- Net sales totaled SEK 102,422 (130,925) thousand, with a decline of -22%. Adjusted for currency effects, the decrease is -21%. Net sales for the enzyme business (excluding the antibody business) amounted to SEK 92,432 (115,520) thousand. Growth for the enzyme business, adjusted for license revenues, was 11%, and adjusted for currency effects as well, 12%.
- Operating profit before depreciation and amortization (EBITDA) totaled SEK 48,407 (60,330) thousand. EBITDA for the enzyme business (excluding the antibody business), adjusted for license revenue and related costs amounted to SEK 22,917 (18,528) thousand.
- Operating profit (EBIT) totaled SEK 40,404 (53,867) thousand. EBIT for the enzyme business (excluding the antibody business), adjusted for license revenue and related costs amounted to SEK 16,618 (14,057) thousand.
- Profit for the period totaled SEK 28,330 (61,920) thousand.
- Earnings per share totaled SEK 0.43 (0.95).
- Comprehensive income for the period totaled SEK 31,386 (65,237) thousand.
- Cash flow from operating activities was SEK 18,518 (57,884) thousand. Adjusted cash flow from operating activities excluding the antibody business was 22,732 thousand.
Comments from Fredrik Olsson, Chief Executive Officer
In the third quarter, we implemented several of our growth strategies and achieved robust growth in our enzyme business. Even with the sale of our antibody business, finalized mid-quarter, we grew sales organically by 13% year-over-year.
When adjusted for the antibody business revenue, this strong growth can be attributed to the solid sales performance in the enzyme segment. Sales growth in enzymes was fueled by large orders in our ADC technology and we saw growth across all major geographic markets. Enzyme sales in analytics totaled SEK 31.6 million, setting a new record for a single quarter and representing growth of 24%. Growth in the enzyme business was 28% when adjusted for currency effects, and 13% when further adjusted for a significant ADC order
In the third quarter, we implemented several of our growth initiatives. In July, we invested in Sequrna and their unique technology platform for RNAase inhibitors, which will pave the way for our expansion into new application areas. Market-preparation activities are underway as part of the partnership, where we now own 25% of Sequrna, gearing up for product sales and distribution, including through our own sales organization. In the middle of the third quarter, we completed a strategic sale of our antibody business to Leinco Technologies to focus our operations on our enzyme business and the growth opportunities we foresee moving forward
Our operating profit in the third quarter demonstrates a strong improvement over last year. The sale of the antibody business contributed to the improvement, but even adjusted for this we show a strong improvement in earnings. Operating profit adjusted for the antibody business almost doubled compared to the third quarter last year. This solid performance has further strengthened our cash position, providing flexibility and the capacity to pursue continued investments in future growth initiatives.
We are experiencing growing interest in our technologies in antibody conjugation and ADC. These technologies are a key component of our strategic growth initiatives, where we are working to broaden and improve our offerings to customers in a market with strong underlying drivers. We intend to continue our efforts in ADC to position ourselves as a clear partner to our customers who want to apply our technologies also in the manufacturing of ADC and related products.
We launched a new enzyme for the analysis of new antibody formats, which occupy an increasing share of biopharma companies’ pipelines. The product has initially been well received by our customers and we see continued opportunities to add new enzymes as our customers develop new and improved antibody-based drugs.
Toward the end of the quarter, we filed patents for no less than four newly developed enzymes with potential therapeutic applications. We have thereby expanded our offering, which together with Xork, creates a differentiated portfolio of enzymes to address challenges in gene therapy and other autoimmune diseases.
I am highly satisfied with both our growth and performance in the third quarter. Genovis remains strong amid challenging geopolitical factors and macroeconomic uncertainty that have impacted our end markets throughout the year. The long-term underlying growth in new and improved pharmaceuticals remains the foundation of Genovis’ business. Our strategic decision to sell the antibody business allows us to focus our resources on our core business and new growth initiatives, such as genomics and ADC.
In closing, I would like to extend my warmest thanks to the employees at Genovis who made several advances during the quarter and continue to do a fantastic job for our customers in their efforts to develop drugs and new treatment methods for patients around the world.
This disclosure contains information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 08-11-2024 08:00 CET.
Interim Report January-September 2024
July – September 2024
· Genovis executed a strategic acquisition of a 25% stake in Sequrna AB
· Genovis successfully completed a strategic divestment of its Antibody Business to Leinco Technologies Inc.
· Net sales totaled SEK 32,895 (30,186) thousand, with a growth rate of 9%. Adjusted for currency effects, the growth was 13%. Net sales for the enzyme business (excluding the antibody business) amounted to SEK 31,625 (25,426) thousand, reflecting a 24% growth, or 28% when adjusted for currency effects.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 24,566 (7,555). EBITDA for the enzyme business (excluding the antibody business) amounted to SEK 10,828 (6,801) thousand.
· Operating profit (EBIT) totaled SEK 22,054 (4 488) thousand. EBIT for the enzyme business (excluding the antibody business) amounted to SEK 8,545 (4,405) thousand.
· Profit for the period totaled SEK 13,798 (3,138) thousand.
· Earnings per share totaled SEK 0.21 (0.05).
· Comprehensive income for the period totaled SEK 14,570 (4,051) thousand.
· Cash flow from operating activities was SEK 723 (9,611) thousand. Adjusted cash flow from operating activities excluding the antibody business was 4,937 thousand.
· Cash and cash equivalents at the end of the period totaled SEK 155,534 (119,131) thousand.
January – September 2024
· Net sales totaled SEK 102,422 (130,925) thousand, with a decline of -22%. Adjusted for currency effects, the decrease is -21%. Net sales for the enzyme business (excluding the antibody business) amounted to SEK 92,432 (115,520) thousand. Growth for the enzyme business, adjusted for license revenues, was 11%, and adjusted for currency effects as well, 12%.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 48,407 (60,330) thousand. EBITDA for the enzyme business (excluding the antibody business), adjusted for license revenue and related costs amounted to SEK 22,917 (18,528) thousand.
· Operating profit (EBIT) totaled SEK 40,404 (53,867) thousand. EBIT for the enzyme business (excluding the antibody business), adjusted for license revenue and related costs amounted to SEK 16,618 (14,057) thousand.
· Profit for the period totaled SEK 28,330 (61,920) thousand.
· Earnings per share totaled SEK 0.43 (0.95).
· Comprehensive income for the period totaled SEK 31,386 (65,237) thousand.
· Cash flow from operating activities was SEK 18,518 (57,884) thousand. Adjusted cash flow from operating activities excluding the antibody business was 22,732 thousand.
Comments from Fredrik Olsson, Chief Executive Officer
In the third quarter, we implemented several of our growth strategies and achieved robust growth in our enzyme business. Even with the sale of our antibody business, finalized mid-quarter, we grew sales organically by 13% year-over-year.
When adjusted for the antibody business revenue, this strong growth can be attributed to the solid sales performance in the enzyme segment. Sales growth in enzymes was fueled by large orders in our ADC technology and we saw growth across all major geographic markets. Enzyme sales in analytics totaled SEK 31.6 million, setting a new record for a single quarter and representing growth of 24%. Growth in the enzyme business was 28% when adjusted for currency effects, and 13% when further adjusted for a significant ADC order
In the third quarter, we implemented several of our growth initiatives. In July, we invested in Sequrna and their unique technology platform for RNAase inhibitors, which will pave the way for our expansion into new application areas. Market-preparation activities are underway as part of the partnership, where we now own 25% of Sequrna, gearing up for product sales and distribution, including through our own sales organization. In the middle of the third quarter, we completed a strategic sale of our antibody business to Leinco Technologies to focus our operations on our enzyme business and the growth opportunities we foresee moving forward
Our operating profit in the third quarter demonstrates a strong improvement over last year. The sale of the antibody business contributed to the improvement, but even adjusted for this we show a strong improvement in earnings. Operating profit adjusted for the antibody business almost doubled compared to the third quarter last year. This solid performance has further strengthened our cash position, providing flexibility and the capacity to pursue continued investments in future growth initiatives.
We are experiencing growing interest in our technologies in antibody conjugation and ADC. These technologies are a key component of our strategic growth initiatives, where we are working to broaden and improve our offerings to customers in a market with strong underlying drivers. We intend to continue our efforts in ADC to position ourselves as a clear partner to our customers who want to apply our technologies also in the manufacturing of ADC and related products.
We launched a new enzyme for the analysis of new antibody formats, which occupy an increasing share of biopharma companies’ pipelines. The product has initially been well received by our customers and we see continued opportunities to add new enzymes as our customers develop new and improved antibody-based drugs.
Toward the end of the quarter, we filed patents for no less than four newly developed enzymes with potential therapeutic applications. We have thereby expanded our offering, which together with Xork, creates a differentiated portfolio of enzymes to address challenges in gene therapy and other autoimmune diseases.
I am highly satisfied with both our growth and performance in the third quarter. Genovis remains strong amid challenging geopolitical factors and macroeconomic uncertainty that have impacted our end markets throughout the year. The long-term underlying growth in new and improved pharmaceuticals remains the foundation of Genovis’ business. Our strategic decision to sell the antibody business allows us to focus our resources on our core business and new growth initiatives, such as genomics and ADC.
In closing, I would like to extend my warmest thanks to the employees at Genovis who made several advances during the quarter and continue to do a fantastic job for our customers in their efforts to develop drugs and new treatment methods for patients around the world.
Genovis Launches FabRICATOR® Xtra: Next-Generation Enzyme for Future Antibody Therapeutics
New generations of antibody-based therapeutics, designed with structural mutations, have posed a challenge to traditional enzyme technologies. These therapeutic antibodies, while offering enhanced efficacy and stability, could not be digested with legacy FabRICATOR® (IdeS), preventing researchers from utilizing the efficient middle-level workflows previously enabled by the enzyme.
FabRICATOR® Xtra is an innovative solution to this challenge. With its ability to precisely and efficiently digest novel engineered antibody formats, Genovis is once again advancing analytical workflows for developers of future therapeutics antibodies. The new enzyme offers the same high level of accuracy and speed that users have come to expect from FabRICATOR®, ensuring that it can seamlessly integrate into existing workflows while supporting the development of future antibody-based therapies.
“With FabRICATOR® Xtra, we’re excited to offer a solution to our customers working at the forefront of antibody-based therapeutic innovation. Our next-generation enzyme supports more complex and mutated antibody formats, giving researchers the tools they need to continue developing the therapies of tomorrow”, said Fredrik Olsson, CEO at Genovis.
FabRICATOR® Xtra builds upon the success of its predecessor by maintaining the same precision, accuracy, and efficiency, while extending its utility to novel formats. Genovis remains committed to supporting the biopharmaceutical industry with innovative, high-performance tools that address the demands of modern therapeutic development.
For more information on FabRICATOR® Xtra please visit: https://www.genovis.com/smartenzymes/antibody-digestion/fabricator-xtra/
Half-Yearly Report January – June 2024
April – June 2024
· Net sales totaled SEK 29,470 (29,463) thousand, with a growth rate of 0.03%. Adjusted for currency effects, the decrease is -1%.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 5,272 (7,687) thousand.
· Operating profit (EBIT) totaled SEK 2,517 (5,981) thousand.
· Profit for the period totaled SEK 1,790 (15,219) thousand.
· Earnings per share totaled SEK 0.03 (0.23).
· Comprehensive income for the period totaled SEK 2,467 (16,843) thousand.
· Cash flow from operating activities was SEK -295 (1,917) thousand.
· Cash and cash equivalents at the end of the period totaled SEK 135,809 (114,198) thousand.
January – June 2024
· Net sales totaled SEK 69,527 (100,739) thousand, with a decline of -31%. Adjusted for currency effects, the decrease is -31%. Organic growth adjusted for license revenue is 0.2%, and -0.4% when also adjusted for currency effects.
· Operating profit before depreciation and amortization (EBITDA) totaled SEK 23,841 (52,776) thousand. Adjusted for license revenue and related costs, EBITDA is SEK 13,713 (13,909) thousand.
· Operating profit (EBIT) totaled SEK 18,350 (49,380) thousand. Adjusted for license revenue and related costs, EBIT is SEK 8,222 (10,513) thousand.
· Profit for the period totaled SEK 14,532 (58,783) thousand.
· Earnings per share totaled SEK 0.22 (0.90).
· Comprehensive income for the period totaled SEK 16,816 (61,186) thousand.
· Cash flow from operating activities was SEK 17,795 (48,272) thousand.
· Cash and cash equivalents at the end of the period totaled SEK 135,809 (114,198) thousand.
Comments from Fredrik Olsson, Chief Executive Officer
In the second quarter, we maintained sales both sequentially and year-on-year. Excluding currency effects and inventory adjustments of approximately SEK -2.9 million compared to the previous year, our operating profit at the EBITDA level improved by 6%. This EBITDA level, at nearly 28%, reflects the stability of our business, where we sustain margins and earnings even in a challenging market.
We have performed well operationally despite challenging market conditions, with restrictions on venture capital for biotech companies temporarily affecting a large part of our customer base and their ability to invest in their development programs. Our sales to the major global biopharmaceutical companies continued to grow in the quarter compared to the previous year, reflecting the value of our broad customer base which, along with our strategic growth initiatives in ADC and new antibody formats, continues to deliver value in a challenging market. In recent years, we have expanded both our customer base and product portfolio through our technologies in these areas and we see growing interest in our technology platforms in ADC. I expect continued robust growth in business opportunities within this area moving forward.
In the course of our strategic review of the antibody business, which we initiated last quarter, we noted interest in the operation, which has resulted in our decision to sell the business to Leinco Technologies. After careful consideration and analysis, we concluded that the sale of the antibody business not only offers an attractive financial outcome, but also frees up resources and capacity that we will now be able to invest in exciting new initiatives that we strongly believe in, and that are in line with our long-term growth strategies. The divestment will enable us to focus even more on innovation and expansion in our most promising business areas. I am confident that this restructuring will lead to increased efficiency and better offers for our customers, while strengthening our competitiveness in the market.
At the beginning of the third quarter, we made a strategic investment in Sequrna. The investment enables Genovis to offer new products to both current and new customers, while opening up opportunities for expansion into new application areas. Collaboration with Sequrna and their unique RNAse inhibitor opens up opportunities for us to expand into new markets in genomics. RNA sequencing is expected to become an increasingly useful tool in both basic research and diagnostics. Moreover, the emerging clinical RNA-based technologies, such as mRNA, represent a major opportunity to contribute to improved human health, which inevitably requires reliable methods to protect RNA in multiple application areas.
Our pipeline of new products continues to develop strongly. Our new infrastructure, combined with AI and a skilled team, generates completely new opportunities for developing enzyme products. We have launched three new products so far this year and I expect the pace of launches to remain high for the rest of the year. We have developed several new enzymes for both analytical and gene therapy applications, which will give us a broader offering when we regain the rights to our Xork enzyme later this year.
Even though our markets have generally seen reduced demand due to the limited availability of venture capital for biotech companies, I am optimistic when I see how our products are appreciated by customers and how our pipeline is steadily expanding – a result of the strong dedication our employees to our customers and to our strategic growth initiatives.
I would like to extend my warmest thanks to all my colleagues who, every day, with great dedication, help our customers in their quest to develop the medicines of the future to improve people’s lives.
Genovis Announces Strategic Divestment of Antibody Business to Leinco Technologies Inc.
The divestment follows a strategic review by Genovis, which identified the need to concentrate on its core enzyme business—a sector where the company has consistently demonstrated market leadership and profitability. The antibody business, while valuable, was deemed non-core to the company’s long-term growth strategy. By divesting this business, Genovis can sharpen its focus on its most profitable segments, driving innovation and growth in the enzyme market.
“We are pleased to have found a strong partner in Leinco Technologies to take over our antibody business,” said Fredrik Olsson, CEO of Genovis. “This divestment allows us to dedicate our resources to our core enzyme business, where we see significant growth potential. We believe that under Leinco’s ownership, the antibody business will thrive and continue to serve its customers with the same commitment to quality and innovation.”
For Leinco Technologies Inc., this acquisition represents a strategic expansion of its already robust portfolio of antibody products. Leinco Technologies has built a reputation for delivering high-quality antibodies used in cutting-edge research and diagnostic applications. The addition of Genovis’s antibody business assets will enhance Leinco’s offerings, providing its growing customer base with an expanded range of unique and specialized antibody products.
“We are excited to integrate Genovis’s antibody assets into our portfolio,” said Pat Leinert Sr., CEO of Leinco Technologies Inc. “This acquisition strengthens our position in the antibody market and allows us to offer an even broader range of innovative products to our customers. We look forward to building on Genovis’s legacy of excellence and delivering these unique antibodies to researchers and clinicians worldwide.”
Financial terms of the deal were not disclosed.
ABOUT LEINCO TECHNOLOGIES INC.
Headquartered in St. Louis, Missouri, Leinco Technologies is a biotechnology company that was founded in 1992 as a specialty manufacturer of early discovery research products including antibodies, recombinant proteins, ELISA kits, second step reagents and many other life science research products. Shortly thereafter, Leinco also established itself as a premier provider of custom R&D and manufacturing services with a focus on monoclonal antibodies and recombinant proteins. Our innovative products and services are used all over the world to augment the early discovery processes in life science research, diagnostics and development of protein therapeutics.
Genovis completes a strategic investment in SEQURNA, a developer of next-generation RNase inhibitors
Following the investment, Genovis will own 25 percent of SEQURNA. As part of the transaction, the parties have agreed to a call option with an end date on 30 June 2027, providing Genovis the right to acquire all shares of SEQURNA under certain terms and conditions. Genovis’ CEO, Fredrik Olsson, will join SEQURNA’s Board of Directors.
RNase inhibitors are critical reagents that are widely used in the life science industry. RNA degradation is a significant challenge in biomedicine, as even minimal contamination can lead to the loss of RNA integrity and affect experimental outcomes. RNA is highly sensitive to degradation by RNases, which can lead to false-negative results and compromised data quality in RNA-based techniques such as RT-PCR, RNA-sequencing, gene expression analysis, and manufacturing of mRNA (in vitro transcription).
As a result, there is a significant demand for improved RNase inhibitors to preserve RNA integrity and ensure the accuracy of experimental results. SEQURNA has developed synthetic, thermostable RNase inhibitors which solve many of the shortcomings of conventional protein-based RNase inhibitors, such as stability and integrity, batch-to-batch variability and interference with downstream applications.
The RNase inhibitor market is forecasted to undergo continued strong growth driven by increased research in genomics and transcriptomics, not least through the expanded use of RNA-sequencing, including single-cell RNA-seq, in situ RNA-seq, and multiomics applications. Moreover, emerging clinical RNA-based tools promise great potential to benefit human health, unavoidably requiring reliable means of RNA preservation.
CEO of Genovis, Fredrik Olsson, commented:
“We are excited to partner with SEQURNA and the very talented team lead by Björn Reinius. We have been following SEQURNA for a while and are impressed with its unique RNase inhibitor technology, which provide customers with improved workflows, simplified storage and logistics, at a competitive price for the end user. The investment in SEQURNA supports our long-term strategy to expand our portfolio by inorganic growth initiatives and continue to bring unique products to our customers within the life science industry.“
CEO and Co-founder of SEQURNA, Björn Reinius (PhD), commented:
“My Co-founders and I are very pleased to onboard Genovis as a strategic partner. Since the launch of our first RNase inhibitor, things have been moving quickly and we see a strong demand for our product. We look forward to receiving the benefit of Genovis’ distribution platform and expertise in the industry, which will benefit SEQURNA’s growth and business development going forward.”
The full terms of the transactions are not disclosed. SEB Corporate Finance acted as sole financial advisor on the transaction.
ABOUT SEQURNA
SEQURNA was founded in 2022 out of the Karolinska Institute, Stockholm Sweden. SEQURNA develops and markets proprietary next-generation RNase inhibitors, which makes RNA work and sequencing pipelines more accessible, affordable, and sustainable. The SEQURNA RNase inhibitor is thermostable and can be shipped and stored at room temperature without affecting its performance. SEQURNA’s inhibitor stands out as the first non-protein-based alternative on the market to match or exceed the performance of conventional recombinant RNase inhibitors in demanding single-cell transcriptomics applications, thereby advancing the RNA protection market.
Communiqué from Genovis AB (publ) Annual General Meeting May 15, 2024
- The Balance Sheet and Income Statement as well as the Consolidated Income Statement and the Consolidated Balance Sheet were adopted.
- The Board and the Chief Executive Officer were discharged from liability.
- The Board shall consist until the next AGM of five ordinary members without deputies.
- Re-election of Board members Torben Jørgensen, Mikael Lönn, Lotta Ljungqvist, Steve Jordan and Magnus Gustafsson.
Torben Jørgensen was elected Chairperson of the Board.
- Remuneration will be paid to the Board of Directors in the amount of SEK 220,000 to Board members and SEK 500,000 to the Chairperson of the Board.
- Remuneration to the auditors will be paid on approved account.
- In accordance with the Nomination Committee’s proposal, the Meeting re-elected the accounting firm Öhrlings PricewaterhouseCoopers AB as auditor for the period until the close of the Annual General Meeting 2025.
- A Nomination Committee will be formed with representatives of the four largest shareholders on September 30, 2024.
- 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 1,625,000 through the issuance of a maximum of 6,500,000 shares.
Minutes with all resolutions from the meeting will be made available on the company’s website:
https://investor.genovis.com/en/corporate-governance/general-meeting/
