Interim Report January – March 2024

Comments from Fredrik Olsson, Chief Executive Officer

We begin 2024 with a strong operating profit and very good cash flow. Even adjusted for license revenue, we improved our performance, both compared to the first quarter of 2023 and the previous quarter. Through continuous improvements and increased capacity, we have maintained good margins despite our expanding product offering, demonstrating the scalability of our business. We have strengthened our already strong cash position, which provides both stability and freedom of movement for continued aggressive investments in growth.

First quarter sales represent the single best quarter to date for our enzyme business in analytics. Sales increased 8% organically compared to the same period last year and by 12% sequentially in relation to the fourth quarter of 2023. This sales growth should be viewed in light of the continued challenging market conditions in China, as well as the ongoing restructuring among both smaller and larger biopharma companies.

In the antibody business, sales decreased by around 30%. Underlying sales to the research market continue to grow, while customers in diagnostics are reducing their inventory levels following the pandemic, which has affected sales for the quarter. Sales to the diagnostics market are expected to recover during the year as customer inventories normalize. We have initiated programs to focus our resources on the most profitable parts of the antibody business to improve performance while adapting the business to the volatile nature of customers in diagnostics.

For enzymes aimed at potential therapeutic applications in gene therapy and other autoimmune diseases, we have initiated more business development activities ahead of formally regaining the rights to Xork™ in the second half of this year. Our development of new enzymes in this application area has also made significant progress recently and we have several new and unique product candidates in development.

Launching new products and enzymes in analytics is an important component of our growth strategy. I am extremely encouraged to see how our pipeline has continued to evolve in recent months, with our team taking advantage of the improved opportunities in our new lab and production facilities. We have already launched two new products and I expect that we will reach our full-year targets in the second quarter and that the launch rate will remain high for the rest of the year.

We see encouraging signs that access to venture capital for biotech companies has improved in early 2024. Even if we, as a supplier to these companies, are somewhat further down the chain of events, it bodes well for the future. The increasing diversification of antibody drugs continues to provide good growth opportunities for Genovis. With our constantly expanding product portfolio and the underlying growth drivers for biologics, I look forward with confidence to Genovis’ continued growth journey.

I would like to extend my warmest thanks to my colleagues at Genovis who, with great dedication, work tirelessly to help our customers in their crucial work of developing new important drugs.

Genovis Interim Report January-March 2024

Genovis Annual Report 2023 published

To read or download the annual report in Swedish, go to:

https://investor.genovis.com/wp-content/uploads/Genovis_AR_2023_Sv.pdf

To read or download the annual report in English, go to:

https://investor.genovis.com/wp-content/uploads/Genovis_AR_2023_En.pdf

For more information, please contact:

Fredrik Olsson, CEO, Genovis AB

T+46 (0)70 276 46 56

E:  fredrik.olsson@genovis.com

Press Release _annual report_2023

Genovis_AR_2023_En

NOTICE CONVENING THE 2024 ANNUAL GENERAL MEETING

Right to participate. Registration

Shareholders who are registered in the register of shareholders maintained by Euroclear Sweden AB on May 6, 2024, and who have notified the company of their intention to attend the Annual General Meeting by no later than May 8, 2024, 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 May 6, 2024. 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 Wednesday, May 8, 2024 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

1. Opening of the Meeting.

2. Election of Chairman of the Meeting.

3. Preparation and approval of voting list.

1. Approval of the agenda.

2. Election of individuals to verify the minutes.

3. Consideration of whether the meeting had been duly convened.

4. Presentation of the annual report and the consolidated accounts as well as the audit report.

5. Speech by the Chief Executive Officer.

6. Resolutions on:

   1. adoption of the Income Statement and the Balance Sheet, as well as the Consolidated Income Statement and the Consolidated Balance Sheet,

   2. allocation of the Company’s result in accordance with the adopted balance sheet,

   3. discharge from liability to the company of the Directors and the Chief Executive Officer.

7. Resolution regarding number members of the Board and deputy members.

8. Resolution regarding directors’ fees.

9. Election of Directors and Chairman of the Board.

10. Resolution on fees to auditors.

11. Election of auditor.

12. Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee

13. Resolution authorizing the Board of Directors to decide on the issuance of shares.

14. 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.

15. 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 200,000 to each Board member who is not employed by the company and SEK 400,000 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 Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee
The Nomination Committee proposes that the Committee for the 2025 AGM will consist of representatives of the four largest shareholders as of September 30, 2024. 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 2025 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 decide on the issuance of 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 24, 2024, 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 10, 2024.

Lund, April 2024

Genovis AB (publ)

Board of Directors

Press Release_Summons

Carthesian Therapeutics terminates Genovis Licence Agreement

Substantial resources have already been invested in the project, which now will be for the benefit of Genovis, amongst other items second and third generation of the Xork enzyme with corresponding patent applications. Currently there are no known pre-clinical or clinical data that suggest that there should not be future opportunities for therapeutic applications of Xork.

“We will now regain full rights to our proprietary Xork enzyme and we can now act on business opportunities with other partners within gene therapy and autoimmune diseases. We have several ongoing partner discussions and we have learned there is a great interest in finding new solutions to neutralizing antibodies.” says Fredrik Olsson, CEO, Genovis.

Press Release March 14

Year-end report January-December 2023

Comments from Fredrik Olsson, Chief Executive Officer

Looking back at 2023, I can say that we have once again achieved our best performance to date. We increased our sales by 55% and our operating profit more than sixfold compared with the previous year. For the full year, the core business grew by 31%. Enzymes in analytics grew by 35% and the antibody business by 13%. At the same time that we moved the entire enzyme operation to new custom-built premises in Kävlinge, we have maintained our operational capacity, ensured the functionality of our new production facility, and launched 4 new products. Our 2023 launches have garnered considerable interest and have been well received by our customers. With the new products, we have expanded our offering of enzymes targeting key components of the immune system, thereby opening opportunities for new applications in analytics and potentially for diagnostic and therapeutic use in the future.

In the fourth quarter, sales rose by 6% compared with the corresponding quarter last year. For Enzymes in analytics, sales grew by 12% and the antibody business declined by 18%. The dampened pace of growth in the quarter is mainly attributable to sluggish customer activity in December. As we enter 2024, however, we note a resurgence in customer activity in line with our expectations.

Enzyme sales continued to be strongly driven by the North American and European markets, which together achieved over 20% growth in the quarter. Market conditions in China remained challenging, especially when compared with the same quarter last year. Sales of our antibody conjugation technologies continue to grow strongly as customers pursue ADC-related projects, where our products have multiple applications. The antibody business continues to be affected by volatility related to production orders for diagnostic applications, but we expect a recovery in 2024.

The development project of the Xork enzyme as a potential pre-treatment in gene therapy is making progress. Recently a development milestone was achieved that triggered a 1 million USD compensation to Genovis.

I am not satisfied with the results in the fourth quarter due to lower growth rates than in previous quarters of the year. In addition, the rapid appreciation of the SEK toward the end of the year, as well as costs related to the relocation of premises and activities related to our business development, had a negative impact on earnings of approximately SEK 3 million. Despite a weak operating profit, we show a strong cash flow for the quarter, mainly linked to improved working capital. As a result of the cash flow, we have further strengthened our cash position, affording us operational leeway to implement our strategic growth initiatives.

In December, we launched another unique enzyme for a specific type of antibodies, expanding our coverage to encompass most of the key antibodies in the immune system. Our pipeline of product development projects continues to expand in line with our long-term strategic growth initiatives. At present, it is significantly broader than previously, including several projects within existing markets for enzyme and antibody conjugation, as well as completely new markets such as Genomics. In addition, we continue to develop enzymes for potential therapeutic applications such as gene therapy, where we see a continued strong interest in new enzymes, and we now have several new enzymes under development.

Because of the growing opportunities in product development, we have implemented changes in our organization to better meet the needs of our customers and our lofty ambitions for new products in 2024. We also remain deeply committed to pursuing our strategies for inorganic growth avenues, including licensing, commercial partnerships, and acquisitions.

I would like to thank all my colleagues at Genovis for their fabulous efforts in 2023. Despite a challenging business landscape and the relocation of our operations, we achieved our best year to date. With a strong 2023 behind us and a promising start to the new year, I eagerly anticipate what lies ahead with confidence. With an expanding pipeline of innovative solutions for our growing customer base, my colleagues and I look forward to continuing to develop business at Genovis in the coming year.

Genovis Interim Report January-December 2023

Genovis to receive USD 1 million in milestone compensation related to the development of the Xork™ enzyme

Xork is derived from a streptococcal bacterial strain that does not infect humans. The pre-clinical data generated to date highlights Xork’s differentiated profile demonstrating very low cross-reactivity with naturally occurring antibodies in human sera while retaining efficient and specific cleavage of human IgG antibodies. 

Press Release February 13

Genovis AB changes Certified Adviser to Carnegie Investment Bank AB (publ)

Genovis AB has entered into an agreement with Carnegie Investment Bank AB (publ) regarding the position as Certified Adviser. Carnegie Investment Bank AB (publ) will take over as Certified Adviser on November 30, 2023. Until then, Erik Penser Bank AB will continue to act as Certified Adviser to the company.

Press Release November 30

Interim Report January-September 2023

Comments from Fredrik Olsson, Chief Executive Officer

We continue to show strong growth during the third quarter. Sales rose by 31% compared with the corresponding quarter last year. Growth in the core business was 41% after adjusting for license revenue. Adjusted for currency fluctuations, growth in the third quarter was 35%. Enzymes in analytics grew by 38% and the antibody business by 4%.

We saw continued strong demand for our enzyme products, mainly in the North American market, but also in Europe. Compared with the second quarter, we see some improvement in the Chinese market but sales in Asia remained sluggish due to lower customer activity in China. Other markets in Asia continued to show good growth. The subdued growth for antibodies is related to some volatility between individual quarters for production orders for diagnostic applications, but the underlying business continues to show solid growth. 

In general, we experience robust activity in our business and demand is mainly driven by major global pharmaceutical companies focusing on antibody drugs – especially new formats such as bispecific antibodies, fusion proteins and antibody conjugates, known as ADCs. Interest in our enzyme-based technologies for antibody conjugation is rising and we see good growth for our technologies, particularly in connection with a general increase in interest in the development of ADCs as a therapeutic modality. These drugs are also more complicated to analyze, which drives enzyme sales for biochemical analysis of ADCs.

With a clear commercial focus, coupled with our investment in our sales and marketing organization, we continue to drive growth. In a challenging market landscape, we leverage our increasingly diverse range of offerings to recognize and seize business opportunities. Through a collective effort and strong support from every facet of the organization, we have kept our momentum robust and ensured our operational effectiveness during this period, all while relocating laboratories to new premises. Our product development is following our activity plan, where we have launched three products so far this year. I expect additional product launches toward the end of the year and our pipeline for 2024 includes several strategic projects to support our future growth ambitions.

The third quarter was characterized by our move to new, specially designed premises that offer improved opportunities for scaling up and continued growth. The new facilities and related investments have therefore impacted our cost base. In addition, we had non-recurring costs of just over SEK 1 million during the quarter related to the move and double rent expenses, which will gradually diminish as the year comes to an end.

I am pleased with our robust growth and earnings for the quarter, especially in light of the investments and temporary costs related to our growth aspirations. Adjusted for non-recurring costs, our operating profit has improved year-on-year. Our ability to maintain strong growth in a challenging market landscape with industry-specific and macroeconomic challenges shows that our continuously expanding offering creates value for our customers. As we continue to invest in future growth prospects, our strong cash flow enhances our liquidity, empowering us to proactively seize opportunities as they emerge.

I would like to convey my heartfelt thanks to all my colleagues at Genovis who work tirelessly to assist our customers in their efforts to develop and manufacture the medicines of the future. I would also like to extend a particularly warm thank you to all employees who have done a fantastic job over a long period of time, enabling our move to brand new premises – another milestone in the growth journey at Genovis.

Genovis Interim Report January-September 2023

Half-Yearly Report January-June 2023

Comments from Fredrik Olsson, Chief Executive Officer

In the second quarter, we continue to show strong growth in the business. We grew revenue by 40% compared with the corresponding quarter last year and show growth in both the enzyme and the antibody business. Our strong growth in the core business, where enzymes in analytics grew by 43% and the antibody business by 24%, reflects our increasingly broad range of products that continue to be developed in close dialogue with our customers and our investment in the commercial organization.

We see a continuation of the strong development in the US and Europe, while Asia remains weaker due to generally subdued customer activity in China. In general, we have good activity in our business and demand is widely distributed across our growing product portfolio. We perceive a gradual increase in the focus on inflammation and immunological diseases in the pharmaceutical industry, where several technologies in our offering are relevant. Moreover, we see an increase in investments in next-generation mRNA technologies and note that our products are being used and evaluated in several mRNA projects.

During the quarter we launched two new enzymes and licensed our first enzyme for the genomics market. IgMBRAZOR™ is a proprietary enzyme that cleaves IgM antibodies with high efficiency and precision, and ImpARATOR™ broadens our offering in glycan analysis. The first orders for both products were delivered to customers in June and initial feedback has been positive. For our genomics enzyme, we have initiated the transfer of technology from the inventors and started work on developing the production process. Our plan is to start the commercialization of the enzyme in early 2024. In May, encouraging preclinical data on ASCGT were presented within the framework of our collaboration with Selecta.

The strategic strengthening of our commercial organization, which was carried out last year, along with good momentum in our product development, have positioned us well for the future. Sales growth is strong despite a general weakening of the macroeconomy, which has also affected parts of our industry, where access to venture capital for biotech companies is currently challenging.

The second quarter was characterized by a flurry of activity ahead of our move to new, specially designed premises that offer improved opportunities for scaling up and continued growth in the business. We continued to invest in infrastructure and in the beginning of the third quarter we initiated our relocation. We have protected the operational capability of certain parts of the business to ensure our ability to deliver during the relocation period. The move is expected to be completed by the beginning of the fourth quarter.

I am of course extremely pleased with our performance for both the second quarter and the first half of the year. We have almost doubled our revenue compared with the previous year, while increasing our operating profit fivefold. At the same time that we are investing for our future growth with new premises, and while continuing to pursue a highly active product development strategy, we are also maintaining a strong cash position that provides opportunities for further aggressive investments.

The start of the third quarter continues to show good customer activity and I look forward to further developing and growing our business in new premises together with my colleagues at Genovis – who continue to do a fantastic job of helping our customers in their quest to develop the medicines of the future.

Genovis Half Year Report January-June 2023

Genovis launch Innovative IgM-Specific Protease with Wide-Ranging Applications in Life Science Markets

The newly developed IgM-specific protease demonstrates a remarkable level of effectiveness, exhibiting exceptional specificity towards IgM antibodies, which play a critical role in the early stages of immune response. These characteristics positions the enzyme as a valuable tool for cutting-edge research and diagnostic applications, providing researchers and diagnostic professionals with enhanced precision and accuracy in their investigations. 

Moreover, data strongly suggest that the prevalence of neutralizing antibodies targeting the IgM protease among the human population is very low. This finding paves the way for potential therapeutic uses of the enzyme in diverse areas, including the treatment of cancer and autoimmune diseases. The enzyme’s specific targeting of IgM presents an exciting opportunity to explore novel therapeutic strategies and  open new possibilities for advancing the development of innovative treatments. 

“The launch of our unique IgM-specific protease, IgMBRAZOR™, represents an important milestone in our strategy to expand our unique antibody digestion platform and position Genovis as the leading company in immunoglobulin cleaving enzymes,” said Fredrik Olsson, CEO of Genovis. “With its remarkable efficiency, specificity, and potential therapeutic applications, we believe this innovative enzyme will make notable contributions to research, diagnostics, and the potential treatment of various diseases.“ 

As part of its commitment to advancing life science research and supporting the healthcare community, Genovis plans to collaborate with leading academic institutions, research organizations, and industry partners to explore the full scope of the IgM-specific protease’s applications. 

For more information about Genovis’s IgM-specific protease, please visit: https://www.genovis.com/smartenzymes/antibody-digestion/igmbrazor/

Press Release June 2