Communiqué from Genovis AB (publ) Annual General Meeting May 16, 2023

The Annual General Meeting adopted the following resolutions:

• 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 200,000 to Board members and SEK 400,000 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 2024.

• In accordance with the Board’s proposal the Company’s Articles of Association, item 2 and 8, was amended. The Board shall be seated in the Municipality of Kävlinge and the company’s General Meeting can be held at the following locations, Kävlinge and Lund.

• A Nomination Committee will be formed with representatives of the four largest shareholders at September 30, 2023.

Communiqué_2023

Interim Report January-March 2023

Comments from Fredrik Olsson, Chief Executive Officer

We started the first quarter of the year with record-breaking sales, making it our single best quarter ever. Revenue increased by 119%, driven by gene therapy license revenue, and at the same time we delivered our best quarter ever for the core business.

Growth in our core business was 41%, where enzymes in analytics grew by 38% and the antibody business by 60%, which is the single best quarter for each segment respectively to date. We mainly saw strong development in both the US and Europe, while Asia was slightly weaker due to sluggish customer activity in China. In general, we see continued robust activity in our business.

During the quarter, we launched a further developed product based on our GlySERIAS enzyme, which continued to show solid sales growth at the beginning of the year. Our product development continues to have good momentum with additional product launches planned during the year. Our collaboration with Selecta Biosciences in gene therapy is following the established development plan and preclinical data will be presented at ASCGT in May. Our sales and marketing team continued to create good activity in our markets, aided by strong support from development and production, as well as application and support.

In April, we acquired the patent rights to a new enzyme for analyzing DNA. This is our first enzyme in genomics with applications in research, diagnostics and forensics. During the year, we will work on developing applications with the enzyme together with partners for future commercialization.

To further strengthen our local presence and commercial capability in China, we have initiated a collaboration with ArcticZymes Technologies. Both companies have unique enzymes with high customer value for the global Life Science industry and together they open up opportunities for a stronger commercial organization and development in the Chinese market.

In the second half of the year, we will move the business to new, specially designed premises that offer improved opportunities for continued growth and scaling up of the business. At the beginning of the year, we started investing in equipment and furnishings, which will continue in the second quarter with the move planned for the third quarter.

I am of course extremely pleased with our performance at the beginning of the year. It is particularly satisfying that all parts of the core business show strong growth and that we have maintained a good gross margin despite increased raw material costs. Much of the increase in the total cost base compared with the previous year is linked to the licensing deal with Astellas, with respect to both incentives and royalty to inventors.

With an outstanding performance, a strong start to the year and good customer activity, I look forward to Genovis’ continued growth journey. I would like to thank my colleagues at Genovis who work hard every day to find the optimal solution to the challenges that our customers face.

Genovis Interim Report January-March 2023

Genovis and ArcticZymes Technologies enter into a collaboration agreement to accelerate growth in China

According to Dirk Hahneiser, VP of Business Development & Marketing, ArcticZymes: “Sharing our resources will not only leverage economies of scale, increased profitability, and long-term value creation for shareholders, but also frees up resources to focus even more on our customers and their needs”.

Rikke Rytter, VP Sales & Marketing at Genovis, says, “We’re excited about the collaboration because joining forces enables both Nordic enzyme companies to leverage synergies, amplify impact, mitigate risk, and expand our respective presence in this fast-growing market”.

PR-GENO AZT May 03-EN

Genovis acquires IP Rights to novel enzymes for applications within genomics

As a leading developer of enzymes for the life science industry, Genovis has acquired the rights to a new enzyme developed by researchers at Uppsala University, led by Professor Ola Söderberg.

“We have developed a new type of DNA polymerase with properties that could not have arisen naturally. This laboratory-created DNA polymerase opens up fantastic opportunities for biotechnology and medical research”, says Ola Söderberg

The acquisition of the rights gives Genovis exclusive rights to develop and commercialize products based on the DNA polymerase. With the acquisition of the IP rights, Genovis will expand its customer offering to include enzymes in genomics.

“We are excited to have the opportunity to acquire the rights to a unique enzyme with potential uses in several applications within the life science field, from research to diagnostics and forensics. The acquisition follows our strategy to commercialize academic research into high-value products and broaden our offerings”, says Fredrik Olsson, CEO of Genovis.

In preparation for the commercialization of the enzyme, Genovis will initiate collaborations with partners as part of the continued product development.

PR-DNA polymerase-Apr 25-EN

Genovis Annual Report 2022 published

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

Årsredovisning 2022

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

Annual Report 2022

Press Release _annual report_2022

Genovis_AR_2022_En

NOTICE CONVENING THE 2023 ANNUAL GENERAL MEETING

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 the consolidated accounts as well as the audit report.
8. Speech by the Chief Executive Officer.
9. 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.
10. Resolution regarding number members of the Board and deputy members.
11. Resolution regarding directors’ fees.
12. Election of Directors and Chairman of the Board. 
13. Resolution on fees to auditors.
14. Election of auditor.
15. Amendment of the Articles of Association.
16. Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee
17. Resolution authorizing the Board of Directors to decide on the issuance of shares.
18. 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.
19. 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 Amendment to the Articles of Association item 2 and 8

The Board of Directors proposes that the Company’s Articles of Association, item 2 Seat of the Board, shall be amended as follows:

The Board shall be seated in the Municipality of Kävlinge.

The Board of Directors proposes that the Company’s Articles of Association, item 8 Summons, shall be amended as follows:

Summons to the company’s General Meeting shall take place through announcement in Post och Inrikes Tidningar as well as on the company’s website. That notice has been given shall be announced in Dagens Industri.

In order to participate in the General Meeting, shareholders must send a notification to the company concerning such on the day that is specified in the summons to the meeting. This day shall not be a Sunday, other normal holiday, Saturday Midsummer’s Eve, Christmas Eve or New Year’s Eve and shall not be earlier than the fifth working day before the meeting. The company’s General Meeting can be held at the following locations, Kävlinge and Lund.

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.

Item 16 Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee

The Nomination Committee proposes that the Committee for the 2024 AGM will consist of representatives of the four largest shareholders as of September 30, 2023. 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 2024 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 17 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 2,450,000 through the issuance of a maximum total of 9,800,000 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 Scheelevägen 2, S-223 63 Lund, Sweden, and on the Company’s website www.genovis.com as of April 25, 2023, 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, 220 07 Lund, 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 11, 2023.

                  Lund, April 2023

Genovis AB (publ)

Board of Directors

Press Release_Summons

Year-end Report January-December 2022

Comments from Fredrik Olsson, Chief Executive Officer

In the fourth quarter we continued to have strong sales growth of 38% in the core business. For enzymes in analytics, sales increased 30% and in the antibody business growth was 80% year over year. We also see continued high customer activity in all geographic markets at the start of the year.

We experienced continued good customer activity in our markets during the quarter. New products continue to expand our business toward multiple applications and future medicines in a very satisfying manner. Over the course of the year we added a total of four new products that have been very well received by our customers. Products developed and launched in recent years are showing strong growth and taking an increasing share of our overall business. This is very gratifying and validates our ability to execute our strategy of customer-driven innovation.

Our collaboration with Selecta Biosciences for the Xork enzyme in gene therapy is being developed with several potential customers who are interested in our joint offering. At the beginning of the new year, Selecta sublicensed the enzyme to Astellas Pharma for use together with their gene therapy candidate for treatment of Pompe Disease. In addition to the early revenue of approximately SEK 42 million, this is an important reference deal that opens up further business opportunities for Xork in other gene therapy indications.

The expansion of our sales and marketing organization initiated during the year was fully implemented by the end of 2022, completely on track. We have consistently seen results from our efforts in different geographies and segments. Excluding license revenue from Selecta, our enzyme business grew by 29% during the year and antibody sales increased by 38%.

I am of course not satisfied with the operating profit and cash flow in the fourth quarter 2022. However, they were weighed down by a one-time cost after we decided to refund parts of an insurance claim related to a patent dispute in 2014, therefore disconnected from our business, which continues to develop well. Our liquidity remains robust and together with license revenue from Xork we will have over SEK 100 million in cash and cash equivalents in the first quarter 2023, providing us with both strength and opportunities for continued aggressive investment.

I would like to thank all of my colleagues at Genovis for their fabulous efforts in 2022. Our growing team has, despite a challenging environment and economic turbulence, done an outstanding job of navigating through the year.

I look forward with confidence to developing Genovis’ business together with our growing team in 2023 and continuing our growth journey based on innovative solutions for our expanding customer base in the biopharma industry and their aspiration to develop medicines for the future.

Genovis Year End Report Jan-Dec 2022 EN

Genovis to receive 4 MUSD upfront after Selecta Biosciences sublicensed Xork™ enzyme to Astellas Pharma

As part of the licensing agreement entered between Genovis AB and Selecta Biosciences Inc. in 2021, Genovis will receive 4 MUSD upfront following the sublicensing of the Xork enzyme from Selecta Bioscience Inc. to Astellas Pharma Inc. Genovis is eligible to receive additional sublicense revenues up to 135 MUSD from development and commercialization plus royalties on sales where Xork and AT845 are used for treatment of Pompe Disease.  

“The license agreement between Selecta Biosciences and Astellas Pharma validates both the value of the Xork enzyme as a potential pretreatment strategy for gene therapy and the partnership between Genovis and Selecta Bioscience. In our partnership with Selecta Biosciences, we will continue to target additional indications for Xork within the gene therapy field”, says Fredrik Olsson, CEO Genovis. 

Press release 2023-01-09

Interim Report January-September 2022

Comments from Fredrik Olsson, Chief Executive Officer

Sales increased by about 46% in the third quarter, 26% adjusted for currency effects, and we achieved an operating profit of approximately SEK 5 million. 

We note that the influence of the coronavirus pandemic is gradually easing, which has had a positive impact on our customers’ activity. They are returning to a greater extent to the laboratories and projects that are less focused on vaccines and Covid-19-related drug projects.

Sales of enzymes increased by about 44% and we saw growth in all geographic markets, with Asia and North America making the strongest contributions during the quarter. Revenue from gene therapy and bioprocess is expected to contribute to volatility in individual quarters in the short term and in third quarter bioprocess contributed with SEK 1.5 million. The antibody business also saw a strong performance during the quarter, with growth of about 60%. The recently launched service business for antibody analysis have been initiated and first orders have been delivered in the quarter. Overall, our sales performed well and the expansion of our commercial organization, combined with a broader product offering, is reflected in increased customer interaction and new customers.

Our total cost base has increased compared with the corresponding period last year. The increase in the cost of raw materials is largely associated with price increases that have been further accelerated by currency effects, since many of the raw materials are directly linked to other currencies. We have periodically experienced certain supply chain challenges and we are actively working with our suppliers to secure access to raw materials. Personnel costs have increased as a result of the strategic growth initiatives in our commercial organization and associated currency effects.

At the end of the second quarter we launched two new products, GlySERIAS and OmniGLYZOR. Both products have been well received, but GlySERIAS has initially generated tangible commitment among our customers. GlySERIAS mainly focuses on new formats of biopharmaceuticals, outside traditional antibodies, and the customer response has exceeded expectations.

In September, we carried out additional key hires to our commercial organization, in line with the planned strategies for the year. The new members of the commercial organization have been well integrated into our team during the year, thanks to excellent help and support from other parts of the organization, which contributed strongly to the successful initiative.

As yet, we have not experienced any clear impact among our customers due to the geopolitical and macroeconomic situation and the beginning of the fourth quarter has shown continued good customer activity in our various markets.

I would like to conclude by extending a warm thank you to my colleagues at Genovis who do amazing work for our customers every day in their quest to develop new and better treatments for patients around the world.

Genovis Interim Report January-September 2022

Half-Year Report for the First Half of 2022

Comments from Fredrik Olsson, Chief Executive Officer

Sales increased by about 8% in the second quarter. The slower growth during the quarter should be viewed in light of sales to gene therapy of approximately SEK 3 million in the corresponding quarter of the previous year. Revenue in gene therapy and bioprocess are volatile in nature in the short term, although a more even distribution across individual quarters can be expected as more projects accumulate over time. Sales in the core business within Analytics continued to show robust growth and increased by 31%. Sales revenue also increased in the antibody business and we see increased activity in the service business, where the inflow of projects is increasing once again after a period with subdued customer activity because of the pandemic.

During the quarter we launched four new products on the market within different parts of our offering to our customers. We have expanded our antibody labeling technology with yet another product for quantitative and specific labeling of antibodies. At the end of the quarter, new enzyme products were launched for use within both glycan and protein analysis, as well as a new antibody product for use in gene therapy together with our Xork enzyme. We are actively engaged in business development within several gene therapy applications for Xork together with our partner Selecta Biosciences.

Both the quarter and the first half of the year have been characterized by continued expansion of our sales and marketing organization, as well as a long-awaited return to physical marketing activities such as scientific conferences and fairs. Expansion of the sales organization and intensified marketing activities are progressing according to our plan, with an expected increase in expenses compared with the corresponding period last year. Along with successful product launches that have created a broader customer offering, the investments in our sales organization represent an important aspect of our growth strategy and expected growth. 

Recently we entered into a service agreement with evitria, a leading player in the development of recombinant antibodies for the biopharma market. Under this agreement we will expand our operations to include a service business that offers fast and cost-effective LC-MS analysis of antibodies, based on automation in combination with our unique enzymes. We view the agreement with evitria as a starting point for offering automated LC-MS analysis as a service to biopharma industry customers, where the underlying trend of outsourcing research and development activities continues to grow.

We have also recently signed a multi-year license and supply agreement with a new customer in our bioprocess business for the use of our enzyme technology during the development and manufacture of a new biological drug. The agreement further strengthens us in our ambitions in the bioprocess area and we are grateful for the trust our customers have in Genovis as a supplier of new technology to the biopharma industry.

At the end of the quarter, we experienced certain challenges in the supply of raw materials for parts of the product range, which may have a temporary effect on our ability to deliver and fulfil orders. Even if external geopolitical factors currently represent an element of uncertainty, our current assessment is that our business opportunities and operational ability are good, and the beginning of the third quarter shows robust customer activity and continued growth.

I would like to warmly thank my colleagues at Genovis who, in addition to developing four new products and ensuring that our growing product portfolio is available for fast delivery, welcomed new employees and integrated them into our growing team.

Half Year Report January-June 2022