HALF-YEAR REPORT FOR THE FIRST HALF OF 2021

Comments from Fredrik Olsson, Chief Executive Officer

We continue to show good growth for the second quarter of 2021. Our currency-adjusted growth totaled 37% compared with the corresponding quarter the previous year and we posted increased sales in both the enzyme and the antibody business. Currency-adjusted growth totaled 41% for the enzyme business and 4% for the antibody business. 

We continue to be affected by subdued customer activity for enzymes in our Analytics segment due to Covid-19, as reflected by delayed customer projects and changed priorities in research where our products are used. The pandemic has also impacted access to other products that are included in our customers’ analysis flow, which has affected their productivity. We were also subjected to disruptions in global logistics chains during the quarter, while restrictions and delays in customer projects had a dampening effect on the antibody business. 

Despite these challenges, we delivered strong growth, driven by both organic growth among existing customers and new applications for our products, thereby demonstrating the power of our innovative customer-focused business model and organization. 

Antibody labeling is an exciting field in which we have expanded our customer offering over time. We have now taken yet another step in the field through our license agreement with GlycoT Therapeutics At the end of the second quarter we launched the first products based on a combination of our enzyme technologies, which offer a completely new approach to designing antibodies with a defined glycan structure. The technology platform opens up several potential new markets and areas of application for us, including research, diagnostics and antibody drug conjugates (ADCs), and we intend to broaden our offering further in the future. 

We continue to follow our product development strategy through the additional launches of two new products. In the most recent quarter, in addition to TransGLYCIT as described above, we launched antibody products developed in our subsidiary as a complement to our enzyme business. Several projects are underway in the antibodies business where we are leveraging synergies from our acquisition last year. Our ability to develop new enzymes over time is further strengthened by the initiation of our novel enzyme screening project at the end of the quarter, for which we have received financial support from Vinnova. With continued good momentum in our product development activities, I look forward to more product launches in the second half of the year. 

As part of our previously announced collaboration with Waters, we initiated and conducted several joint projects to develop and market new automated protein analysis workflows for our customers. Some of the new methods have already been presented at virtual conferences together with Waters and our joint activities will continue during the second half of the year. Industrial partnerships will continue to be a priority to strengthen our offering of simplified and automated analysis. 

Although we are still experiencing delays and subdued customer activity due to the pandemic, we continue to deliver growth, which is highly satisfying. While the Covid-19 pandemic will likely continue to impact market conditions in the second half of the year, I am optimistic about Genovis’ growth potential over time. 

Finally, I would like to thank all my colleagues at Genovis who are doing a fantastic job by helping our customers on a daily basis to access innovative products to develop the medicines of the future, which will result in continued growth.

Half-Year Report 2021

Genovis and GlycoT Therapeutics enter into cross-licensing agreements on novel antibody conjugation technology

As part of the cross-licensing agreements, Genovis will license enzyme technology from GlycoT and at the same time out-license enzyme technology to GlycoT. The exchange of technology access enables both companies to offer a significantly improved enzyme driven workflow technology to increase the implementation of site-specific antibody conjugation to several application in research, diagnostics and biopharma markets.

Conjugation of molecules to antibodies are frequently used for a wide variety of applications within the life science industry. The need for stable, robust and site-specific conjugation technologies are continuously growing within basic research, diagnostics and pharma markets, including antibody-drug conjugate development. Conjugation to antibodies have traditionally been performed using chemical technologies that produce heterogenous conjugates that may reduce performance due to unwanted side reactions and often requires optimization for each antibody to be labeled. The use of specific enzymes for performing conjugation can effectively remove many of the concerns frequently observed with chemical conjugation. Combining GlycoT and Genovis technologies have the potential to significantly improve quality, reproducibility and productivity in the antibody labelling field.

“I am very pleased to be collaborating with GlycoT and combine the promising enzyme conjugation technology and expertise they have developed   with Genovis SmartEnzymes™and our proven track record for enzyme driven workflows for the life science market. I am looking forward to broaden our product offering together with GlycoT and to further expand our customer base in biopharma, research and diagnostic markets with this new technology platform”, says Fredrik Olsson CEO Genovis.

“We at GlycoT are very excited for the opportunity to team up with Genovis for explorations in the areas of glycan-mediated site-selective labeling and conjugation of antibodies. The combination of our complementary technology and expertise will significantly expand the toolbox for the research community and will speed up the development of more efficient diagnostic and therapeutic methods”, says Lai-Xi Wang, President and Founder, GlycoT Therapeutics.

About GlycoT Therapeutics(www.glycot.com) GlycoT Therapeutics explores innovative chemoenzymatic glycoengineering as a platform technology for site-specific antibody labeling and conjugation. Current focus is to apply the glycoengineering technology for optimizing glycosylation of therapeutic antibodies and for producing homogeneous antibody-drug conjugates as improved therapeutics for the treatment of cancer, inflammation, and infectious diseases.

Press Release June 7_2021

Communiqué from Genovis AB (publ) Annual General Meeting May 20, 2021

• 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 membersTorben Jørgensen,Mikael Lönn, Kenth Petersson and Lotta Ljungqvist.

Steve Jordanwas elected new Board member.

Torben Jørgensenwas elected Chairperson of the Board.

• Remuneration will be paid to the Board of Directors in the amount of SEK 150,000 to Board members and SEK 300,000 to the Chairperson of the Board. 

• The Meeting approved the Board of Directors’ report regarding compensation pursuant to Chapter 8, Section 53 a of the Swedish Companies Act.

• 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 2022.

• A Nomination Committee will be formed with representatives of the four largest shareholders at September 30, 2021.

• 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.

Kommuniké_2021-en-US

Interim Report January – March 2021

•                    Net sales rose by 37 percent to SEK 15,723 (11,475) thousand. Organic growth was 21%.

•                    Gross profit was SEK 15,017 (10,977) thousand.

•                    Operating profit before depreciation and amortization (EBITDA) totaled SEK 1,958 (loss: 847) thousand.

•                    Operating profit totaled SEK 551 (loss: 1,889) thousand.

•                    Comprehensive income for the period totaled SEK 1,607 (loss: 1,915) thousand.

•                    Comprehensive income per share, basic and diluted, totaled SEK 0.02 (-0.03).

•                    Cash flow from operating activities was SEK 3,512 (-1,506) thousand.

•                    Cash and cash equivalents at the end of the period totaled SEK 45,929 (61,641) thousand.

Significant events after the end of the quarter

In April, Genovis and Waters entered into a collaboration to develop efficient methods for biopharmaceutical characterization. The goal of the collaboration is to develop automated workflows for rapid and accurate characterization of critical quality attributes of monoclonal antibodies and other protein-based drugs for bioprocess development, formulation, stability testing and quality control (QC).

Comments from Fredrik Olsson, Chief Executive Officer

We begin 2021 by showing continued growth of 37% for the first quarter compared with the previous year. This means we have shown growth for 26 consecutive quarters (YoY). The first quarter, which is usually a weaker quarter for Genovis, began with subdued customer activity due to COVID-19-related restrictions, but we gradually saw an increase in activity in our main markets, the US and Europe, with Asia also showing continued strong growth.

Despite the sluggish start to the quarter, the core business for enzymes in Analytics shows organic growth of 21% year-on-year. The market for our antibody business in the US continued to be impacted by reduced general diagnostics and restrictions in the university setting due to the COVID-19 pandemic.

In April we announced a new partnership with Waters aimed at jointly developing and marketing common workflows for biochemical analysis of proteins and biopharmaceuticals. Waters has a strong position in the biopharma industries, especially within quality control. Waters’ clear strategy of developing robust and user-friendly analytical instruments lowers the threshold for implementing advanced protein analysis. This step paves the way for new users and new application areas in the development of biological drugs. The strategy and approach align perfectly with Genovis’ strategies and goals, so I look forward to combining our unique enzyme technology with Waters’ instruments to help our customers in their efforts to develop novel and safer therapeutics.

We will continue our efforts to establish more industrial partnerships to expand our business opportunities moving forward. I see more opportunities to strengthen our customer offering in antibody labelling, glycomics and automation, making complementary technologies and collaborations key components in our growth journey.

Our continued investments in product development are clearly reflected in our pipeline, which is strong and diversified in glycomics, automation and antibody labelling, but also in potential new application areas. This means we have laid a solid foundation for new business opportunities and continued growth moving forward. During the quarter, we expanded and strengthened our research, product development and production teams to take advantage of and implement new business opportunities.

In March, we learned that we received a grant of SEK 2 million from Vinnova for development of a new platform for identification and production of enzymes for protein analysis. The grant will include a dedicated research position and will be carried out in collaboration with the Department of Applied Microbiology at the Faculty of Engineering and the Department of Infectious Diseases at Lund University.

Although our markets continue to be impacted by uncertainty and restrictions for our customers in their work as a result of the pandemic, the increased vaccination rate will hopefully gradually improve conditions in 2021.

In conclusion, I would like to thank all of my colleagues at Genovis who have done a great job helping our customers every day to have access to the innovative products that continuously grow Genovis’ business.

For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: +46 (0)46 101233, email: fredrik.olsson@genovis.com

ABOUT GENOVIS
Genovis’business concept is to apply its knowledge and imagination to design and provide innovative tools for the development of the drugs of the future. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.

The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA). Genovis shares are listed on Nasdaq First North Growth Market and Erik Penser Bank is the Company’s Certified Adviser, certifiedadviser@penser.se, T: +46 (0)8 463 83 00.

Published reports can be downloaded from the Genovis website:
https://investor.genovis.com/en/financial-reports/

This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the contact person set out above, on April 29, 2021.

This press release is a translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.

Q1_2021 Genovis en-US

Genovis Annual Report 2020 published

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

https://investor.genovis.com/wp-content/uploads/genovis-arsredovisning-2020.pdf

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

https://investor.genovis.com/wp-content/uploads/genovis-annual-report-2020.pdf

Press Release April 28, 2021

genovis-annual-report-2020

NOTICE CONVENING THE 2021 ANNUAL GENERAL MEETING

Registration and notification

Shareholders who wish to participate in the Annual General Meeting by postal voting must:

•    be recorded as shareholder in the share register maintained by Euroclear Sweden AB on Tuesday, May 11, 2021; and

• give notice of their intention to participate by submitting their postal votes (in accordance with the instructions under the heading Postal Voting below), so that these are received by Advokat Källen not later than Wednesday, May 19 2021.

To be entitled to participate in the Annual General Meeting, shareholders whose shares are held in the name of a nominee must, in addition to giving notice of participation in the AGM by submitting their postal vote, re-register the shares in their own name so that the shareholder is registered in the share register as of the record date on May 11, 2021 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 Friday, May 14, 2021 will be taken into account in the preparation of the share register.

Postal voting

The Board of Directors has decided that shareholders should be able to exercise their voting rights only by postal voting in accordance with Section 22 of the Act (2020:198) on temporary exceptions to facilitate the execution of general meetings in companies and other associations. A special form must be used for the postal vote. The postal voting form is available on the Genovis website: https://investor.genovis.com/en/corporate-governance/general-meeting/

The completed and signed postal voting form shall be sent by mail to Genovis AB c/o Advokatfirman Källén AB,Klostergatan 10, 222 22 Lund, Sweden, or by e-mail to arne@advkallen.se. Completed forms must be received by Advokat Källen no later than Wednesday, May 19, 2021. Shareholders may not assign specific instructions or conditions to the postal vote. The postal voting form will be deemed to be invalid in its entirety if this happens.

Proxies

If a shareholder votes in advance via a representative, a written and dated proxy form, signed by the shareholder, must be attached to the advance voting form. The proxy form is available on the Genovis websitehttps://investor.genovis.com/en/corporate-governance/general-meeting/. If the shareholder is a legal entity, a certificate of registration or other authorization document must be attached to the advance voting form.

Proposed Agenda

1. Election of Chairman of the Meeting.
2. Election of two persons to verify the minutes.
3. Preparation and approval of voting list.
4. Approval of the agenda.
5. Consideration of whether the meeting had been duly convened.
6. Presentation of the annual report and the consolidated accounts, as well as the audit report.
7.  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.
8. Determination of number of members of the Board and deputy members.
9. Determination of fees for members of the Board of Directors.
10. Election of members of the Board of Directors and Chairman of the Board.
    1. Torben Jørgensen as Board member.(re-election)
    2. Mikael Lönn as Board member.(re-election)
    3. Lotta Ljungqvist as Board member.(re-election)
    4. Kenth Petersson as Board member.(re-election)
    5. Steve Jordan as Board member.(election)
    6. Torben Jørgensen as Chairman of the Board.(re-election)
11. Determination of fees for the auditor.
12. Election of auditor.
13. Resolution on approval of the remuneration report.
14. Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee.
15. Resolution authorizing the Board of Directors to decide on the issuance of shares.
16. 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.
17. Adjournment.

Item 1. Election of Chairman of the Meeting
Genovis’ Nomination Committee, which includes Mikael Lönn, Erik Sprinchorn – TIN Funds, Johan Sjöström – Second AP Fund and Markus Lindqvist – Aktia Fondbolag AB proposes:

Attorney Arne Källén to chair the meeting, or, in the event he is unable to participate, the person appointed by the Board of Directors.

Item 2 Election of two persons to verify the minutes

The Board of Directors proposes Gunnar Björdal, and Iwa Grip, or in the event one or both of them are unable to participate, the person(s) appointed by the Board of Directors, to verify the minutes of the meeting. The duties of the minute-checkers also include verification of the voting list and ensuring that the postal votes received are correctly recorded in the minutes of the meeting.

Item 3 Preparation and approval of voting list

The voting list that is proposed for approval is the voting list based on the meeting’s shareholder register and received postal votes, verified by the minute-checkers.

Item 8 Determination of number members of the Board and deputy members

The Nomination Committee proposes that the Board shall consist of five members without deputies.

Item 9 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 150,000 to each Board member who is not employed by the company and SEK 300,000 to the Chairman of the Board.

Item 10. Election of Directors and Chairman of the Board.

The Nomination Committee proposes:

Re-election of Board members Torben Jørgensen, Mikael Lönn, Kenth Petersson and Lotta Ljungqvist.

Election of Steve Jordan.

Re-election of Torben Jørgensenas Chairman of the Board.

Steve Jordan was born in 1953 and lives in the UK. He currently works as a consultant for several companies engaged in the development of novel technologies and materials for the life science industries. Prior experience includes Chief Scientific Officer and Senior Director R&D Chemistry at Biotage during the years 2005-2020. Before that he was Head of Business Development at CombiPure UK, Director of Analytical Sciences, Compound Management and Instrument Development at Millennium UK, and Section Leader for High Throughput Medicinal Chemistry at Roche Discovery Welwyn. Steve has no other board assignments and is independent in relation to the company, company management and the company’s major shareholders.

Item 11 Resolution on fees to auditors

The Nomination Committee proposes that remuneration to the auditors shall be paid on approved account.

Item 12 Election of auditor

The Nomination Committee proposes the 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 13 Resolution on approval of the remuneration report

The Board of Directors proposes that the Annual General Meeting resolves to approve the Board of Directors’ report on remuneration pursuant to Chapter 8, Section 53 a of the Swedish Companies Act.

Item 14 Appointment of members to the Nomination Committee and adoption of guidelines for the Nomination Committee

The Nomination Committee proposes that the Committee for the 2022 Annual General Meeting will consist of representatives of the four largest shareholders as of September 30, 2021. 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 in the 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 2022 Annual General Meeting for resolution as regards chairman at the meeting, Chairman of the Board and other directors, remuneration of directors and auditors, and principles for appointing the Nomination Committee. The Nomination Committee mandate runs until a new committee is appointed.

The Nomination Committee proposes that remuneration will only be paid for direct costs associated with the assignment.

Item 15 The Board’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, postal voting form, proxy form and the other proposals for motions will be available at the Company’s office at Scheelevägen 2, postal address: Box 790, S-220 07 Lund, Sweden, and on the Company’s website www.genovis.com as of April 29, 2021, 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 790, SE-220 07 Lund, or by e-mail to: legal@genovis.com, no later than May 10, 2021.

Lund, April 2021

Genovis AB (publ.)

Board of Directors

Release

Genovis and Waters Collaborate to Develop Efficient Workflows for Biopharmaceutical Characterization

Genovis and Waters (NYSE:WAT) are formally collaborating to develop and market complete routine biopharmaceutical characterization workflows based on  Genovis SmartEnzymes^TMand the Waters™ BioAccord™ LC-MS System,Andrew+ pipetting robot. The goal of the collaboration is to develop automated workflows for the rapid and consistent characterization of critical quality attributes (CQAs) of monoclonal antibodies (mAbs) and other protein-based drugs in bioprocess development, formulation, stability testing and quality control (QC).

” The BioAccord SmartMS™ system and the Andrew+ aligns perfectly with our strategies and vision at Genovis to bring simplified, robust and automated enzyme-driven workflows to the biopharma industry said Fredrik Olsson, CEO, Genovis AB. “The enzymatic workflows that we will develop in collaboration with Waters will help our customers in their efforts to bring safe and novel therapeutics to patients, faster.”

“Biologics analysis is an area that is ripe for improvement. What takes analytical scientists several days to do, should take hours or minutes instead,” said Jeff Mazzeo, Vice President, Global Marketing and Scientific Operations, Waters Corporation. “Today, up-front sample preparation is a major bottleneck to productivity, largely due to the number of manual steps involved and the outmoded technology by which samples are readied for analysis. By combining Genovis’ SmartEnzymes with automation, liquid chromatography/time-of-flight mass spectrometry and application-specific software workflows from Waters, we intend to move biotherapeutic analysis forward in ways never thought possible.” 

The workflows in development are based on the pairing of the Waters BioAccord LC-MS System, Andrew+ pipetting robot and Genovis SmartEnzymes and will focus on addressing the application needs of GxP laboratories in the following areas:

• Product variant analysis [e.g. glycosylation, oxidation]
• Bioprocess stability monitoring
• Biosimilar glycosylation analysis

Additional Resources

Visit the Waters web site: BioAccord LC-MS System for Biopharmaceuticals

Watch the video: Multi-Attribute Method Overview

Visit the Genovis AB website for information on Genovis SmartEnzymes

Visit the AndrewAlliance website for information on the Andrew+ Pipetting Robot

Visit Genovis Blog
 

About Waters Corporation (www.waters.com)

Waters Corporation (NYSE:WAT), the world’s leading specialty measurement company, has pioneered chromatography, mass spectrometry, and thermal analysis innovations serving the life, materials, food and environmental sciences for more than 60 years. With more than 7,400 employees worldwide, Waters operates directly in 35 countries, including 14 manufacturing facilities, and with products available in more than 100 countries.

Waters, BioAccord, SmartMS, Andrew Alliance and waters_connect are trademarks of Waters Corporation.

Waters Contact: Brian J. Murphy, PR Manager, Corporate Communications Waters Corporation, brian_j_murphy@waters.com, +1 508-482-2614

Release

Genovis CFO has resigned

Johny has been employed by Genovis since 2019 and he will continue in his current role during the notice period. A process to recruit a new CFO will be initiated immediately.

“During his time at Genovis, Johny has contributed to the development of the Group’s financial management. I would like to thank him for his contribution to Genovis and wish him good luck in his new endeavors,” says Fredrik Olsson, CEO of Genovis

Release

Proposal to expand the Genovis Board of Directors at 2021 AGM

Steve Jordan was born in 1953 and resides in the United Kingdom. He is currently working as a consultant for several companies engaged in development of new novel technologies and materials for the life science industries. Previous experiences include i.a. Chief Scientific Officer and Senior Director R&D Chemistry at Biotage during the years 2005-2020. Prior to that, Head of Business Development at CombiPure UK, Director Analytical of sciences, compound management and instrument development at Millennium UK and Section Leader for High Throughput Medicinal Chemistry at Roche Discovery Welwyn. Steve has no other board assignments and is independent in relation to the company, company management and the company’s major shareholders.

The new Board of Directors in the proposal to the AGM is as follows: Re-election of Torben Jørgensen, Lotta Ljungqvist, Mikael Lönn and Kenth Petersson and new election of Steve Jordan.

The Nomination Committee proposes re-election of Torben Jørgensen to serve as Chairman of the Board.

Genovis’ Nomination Committee:

Mikael Lönn (Chairman)

TIN Fonder, represented by Erik Sprinchorn, Portfolio manager

Andra AP-fonden, represented by Johan Sjöström, Portfolio manager

Aktia Fondbolag AB, represented by Markus Lindqvist, Director, Aktia Kapitalförvaltning AB 

Release

Year-end Report January – December 2020

Report for the fourth quarter of 2020          

October – December in brief

• Net sales totaled SEK 19,850 (12,830) thousand. Organic growth, adjusted for acquired sales, rose by 33% to SEK 17,102 thousand.
• Gross profit totaled SEK 19,761 (12,065) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 6,196 (492) thousand.
• Operating profit was SEK 4,604 (loss: -522) thousand.
• Comprehensive income was SEK 6,347 (loss: -895) thousand.
• Earnings per share, basic and diluted, totaled SEK 0.13 (-0.01).
• Cash flow from operating activities was SEK -672 (2,824) thousand.
• Cash and cash equivalents at the end of the period totaled SEK 44,118 (14,992) thousand.
• Genovis AB and Glykos Finland Oy have entered into a licensing and supply agreement for unique toxin and linker technologies to be combined with the site-specific marking technology for antibodies from Genovis.
   

January – December in brief

• Net sales totaled SEK 61,030 (60,549) thousand. Organic growth, adjusted for bioprocess and acquired sales, rose by 20% to SEK 53,329 thousand.
• Gross profit totaled SEK 59,370 (56,187) thousand.
• Operating profit before depreciation and amortization (EBITDA) totaled SEK 8,573 (13,563) thousand and was negatively impacted by non-recurring expenses for acquisitions and restructuring of SEK 2.6 million.
• Operating profit totaled SEK 3,140 (10,066) thousand.
• Comprehensive income was SEK 1,973 (9,549) thousand.
• Cash flow from operating activities was SEK 3,755 (2,824) thousand.
• Earnings per share, basic and diluted, totaled SEK 0.10 (0.15).
• During the year Genovis acquired all shares of QED Bioscience Inc. The total cost of the acquisition, including transaction costs, is SEK 20 million.
• In the first quarter Genovis raised SEK 50 million for the Company before issue expenses in a rights issue.

Comments from Fredrik Olsson, Chief Executive Officer

We ended a challenging year on a strong note. In the fourth quarter, growth in the core business for enzymes within Analytics was 23 percent and currency-adjusted growth was 33 percent. Growth in the fourth quarter was driven by a general increase in activity in our markets, along with several large individual orders.

We saw a recovery in customer activity in both North America and Europe at the beginning of the quarter. In Asia sales growth continued and some markets showed a return to a more normal level of market activity.

The antibody business in our subsidiary showed growth in the quarter compared with the corresponding period the previous year, driven in part by orders that were postponed from Q3 because of the pandemic. Parts of the antibody business continue to be impacted by the general reduction in diagnostics as a result of COVID-19.

We have completed our investments in our electronic sales and marketing system since we do not expect to be able to carry out physical marketing activities such as conferences and customer meetings until the second half of 2021 at the earliest. Our initiatives have resulted in the continued inflow of new customers, which is extremely encouraging.

We have periodically experienced challenges in various geographic markets as a result of local restrictions imposed by the authorities to limit the spread of infection. In many markets, operational work in our customers’ laboratories continued to be limited by COVID-19-related restrictions, which in turn negatively impacts our business. Postponements caused by challenges related to conducting clinical trials have entailed delays in some of our customers’ projects. My assessment is that access to vaccine and implementation of a hopefully successful vaccination program will determine the pace of recovery to a more normal market situation in 2021. Despite these challenges, revenue in our core business grew and the inflow of new customers resulted in continued growth in our customer base compared with the previous year.

Through our collaboration with Glykos at the end of the year we launched yet another product in our antibody labeling segment. GlyCLICK® ADC facilitates quick and simplified generation of antibody drug conjugates (ADC) in which Genovis’ labeling platform is combined with the latest generation of linker technology from Glykos. We are actively working to establish more industrial partnerships to further strengthen our product portfolio and broaden our customer offering to the biopharma industry. We will continue to focus on product development and we plan to launch several new enzyme products within analysis and antibody labeling during the first half of 2021.

At the end of the year, the second wave of the pandemic hit several of our key markets. Over the short term, once again there is growing uncertainty about what impact the reinstated restrictions will have on Genovis’ activities, especially in Europe and the US.

Despite the uncertainty about short-term market trends because of the pandemic, Genovis’ growth potential for the future remains intact. Because of the strong underlying driving forces for growth within several areas related to biological drugs and protein analysis, my fundamental outlook remains positive regarding our potential for continued strong growth over time.

I would like to close by thanking the Board of Directors and shareholders for their support and commitment over the past year. I would also like to warmly thank my colleagues at Genovis who have successfully handled a challenging year with great dedication, which has allowed us to enter 2021 with renewed vigor.

For more information, please contact: Fredrik Olsson, CEO, Genovis AB Tel: +46 (0)46 101233, email: fredrik.olsson@genovis.com

ABOUT GENOVIS
Genovis’business concept is to apply its knowledge and imagination to design and provide innovative tools for the development of the drugs of the future. Today Genovis sells several enzyme products known as SmartEnzymes all over the world in innovative product formats that facilitate development and quality control of biological drugs.

The Group consists of Genovis AB and the wholly owned subsidiary Genovis Inc. (USA). Genovis shares are listed on Nasdaq First North Growth Market and Erik Penser Bank is the Company’s Certified Adviser, certifiedadviser@penser.se, T: +46 (0)8 463 83 00.

Published reports can be downloaded from the Genovis website:
https://investor.genovis.com/en/financial-reports/

This information is information that Genovis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, by the contact person set out above, on February 11, 2021.

This press release is a translation of the Swedish original. In the event of any discrepancy between this translation and the Swedish original, the Swedish version shall prevail.

Release